Financial statement analysis and common stock valuation

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Eaton Corp. plc generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Eaton Corp. plc reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Eaton Corp. plc earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Analysis of Debt

• Total Debt (Carrying Amount)
• Total Debt (Fair Value)
• Weighted-average Interest Rate on Debt

Analysis of Geographic Areas

Eaton Corp. plc operates in 5 regions: United States; Canada; Latin America; Europe; and Asia Pacific.

• Area Asset Turnover
• Net sales
• Long-lived assets

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Eaton Corp. plc cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Eaton Corp. plc balance sheet.

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Eaton Corp. plc relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Eaton Corp. plc suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by Eaton Corp. plc.

Analysis of Revenues

• Revenues as Reported