Eaton Corporation PLC (ETN)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.08 | 2.05 | 2.05 | 2.00 | 2.02 | 2.03 | 2.05 | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | 2.07 | 2.14 | 2.39 | 2.27 | 2.13 | 2.14 | 2.14 | 2.17 |
Eaton Corporation PLC has consistently maintained a strong solvency position based on the provided ratios.
The Debt-to-assets ratio has remained consistently at 0.00 over the analyzed period, indicating that the company has not relied heavily on debt financing to fund its assets. This implies a lower financial risk as the company has a lower percentage of its assets financed by debt.
Similarly, the Debt-to-capital ratio has also been stable at 0.00, suggesting that Eaton Corporation PLC has financed its operations and investments predominantly through equity capital rather than debt capital. This signifies a robust financial structure with lower financial leverage.
The Debt-to-equity ratio, also at 0.00 throughout the period, reinforces the company's conservative debt management strategy and indicates a healthy balance between debt and equity financing.
The Financial leverage ratio, which measures the proportion of the company's assets that are financed by debt relative to equity, has shown a slight fluctuation but has generally trended downwards over the period. This decrease in financial leverage ratio signifies a decreased reliance on debt and a stronger equity base to support the company's operations.
Overall, these solvency ratios reflect Eaton Corporation PLC's prudent financial management and strong solvency position, suggesting a lower risk of financial distress and a solid foundation for future growth and stability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 36.11 | 39.65 | 36.93 | 31.31 | 25.85 | 20.67 | 18.38 | 16.92 | 16.06 | 17.52 | 16.33 | 16.63 | 17.31 | 16.43 | 15.89 | 12.48 | 11.99 | 11.10 | 11.32 | 13.08 |
Eaton Corporation PLC's interest coverage has displayed a generally improving trend over the analyzed periods, indicating the company's ability to cover its interest expenses with its operating income. The interest coverage ratio has consistently remained above 1, indicating that the company is generating sufficient earnings to meet its interest obligations.
From March 31, 2020, to December 31, 2024, the interest coverage ratio increased from 13.08 to 36.11. This upward trend suggests that Eaton Corporation PLC's ability to service its debt has significantly improved over time. The highest interest coverage ratio was recorded on December 31, 2024, at 36.11, indicating a strong financial position and robust earnings relative to its interest expense.
The rising trend in the interest coverage ratio indicates that Eaton Corporation PLC has been effectively managing its interest expenses in relation to its operating income. This improvement reflects positively on the company's financial health and its capacity to meet its debt obligations comfortably.