Eaton Corporation PLC (ETN)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,344,000 | 3,162,000 | 2,790,000 | 2,529,000 | 2,487,000 | 1,829,000 | 2,388,000 | 2,564,000 | 2,428,000 | 2,590,000 | 2,063,000 | 1,462,000 | 1,667,000 | 1,871,000 | 2,055,000 | 2,761,000 | 2,769,000 | 3,591,000 | 3,816,000 | 9,217,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 19,036,000 | 18,383,000 | 17,953,000 | 17,449,000 | 17,038,000 | 16,068,000 | 16,380,000 | 16,620,000 | 16,413,000 | 15,971,000 | 15,408,000 | 14,995,000 | 14,930,000 | 14,476,000 | 14,188,000 | 14,245,000 | 16,082,000 | 15,848,000 | 16,306,000 | 16,233,000 |
| Return on total capital | 17.57% | 17.20% | 15.54% | 14.49% | 14.60% | 11.38% | 14.58% | 15.43% | 14.79% | 16.22% | 13.39% | 9.75% | 11.17% | 12.92% | 14.48% | 19.38% | 17.22% | 22.66% | 23.40% | 56.78% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,344,000K ÷ ($—K + $19,036,000K)
= 17.57%
Eaton Corporation plc's return on total capital has shown a positive trend over the past eight quarters, indicating improved efficiency in generating earnings from its total invested capital. The return on total capital increased from 9.60% in Q1 2022 to 13.73% in Q4 2023, demonstrating consistent growth in profitability. This upward trajectory suggests that Eaton Corporation plc has been effectively utilizing its capital to generate returns for its shareholders. The company's ability to maintain and increase its return on total capital indicates sound financial management and operational efficiency. Overall, the trend in return on total capital reflects positively on Eaton Corporation plc's financial performance and strategic decision-making.
Peer comparison
Dec 31, 2023