Stock Analysis on Net
Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Eaton Corp. plc, adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.60 0.59 0.58 0.56 0.65
Adjusted 0.61 0.60 0.59 0.57 0.66
Liquidity Ratio
Current Ratio
Reported 1.51 1.38 1.04 1.56 1.70
Adjusted 1.64 1.49 1.11 1.63 1.79
Solvency Ratios
Debt to Equity
Reported 0.49 0.51 0.52 0.54 0.52
Adjusted 0.50 0.51 0.52 0.55 0.53
Debt to Capital
Reported 0.33 0.34 0.34 0.35 0.34
Adjusted 0.33 0.34 0.34 0.36 0.35
Financial Leverage
Reported 2.02 2.06 2.07 2.13 2.04
Adjusted 1.91 1.93 1.95 2.04 1.95
Profitability Ratios
Net Profit Margin
Reported 13.87% 11.86% 10.92% 7.90% 10.34%
Adjusted 13.79% 9.78% 14.01% 8.46% 9.29%
Return on Equity (ROE)
Reported 16.90% 14.45% 13.06% 9.44% 13.75%
Adjusted 16.20% 11.33% 16.02% 9.81% 11.95%
Return on Assets (ROA)
Reported 8.37% 7.03% 6.30% 4.43% 6.74%
Adjusted 8.46% 5.87% 8.23% 4.81% 6.11%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Eaton Corp. plc adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Eaton Corp. plc adjusted current ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Eaton Corp. plc adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Eaton Corp. plc adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Eaton Corp. plc adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Eaton Corp. plc adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Eaton Corp. plc adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Eaton Corp. plc adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Eaton Corp. plc, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net sales 23,196 20,752 19,628 17,858 21,390
Total assets 38,432 35,014 34,027 31,824 32,805
Activity Ratio
Total asset turnover1 0.60 0.59 0.58 0.56 0.65
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 23,314 20,838 19,793 17,881 21,376
Adjusted total assets3 38,012 34,715 33,677 31,446 32,482
Activity Ratio
Adjusted total asset turnover4 0.61 0.60 0.59 0.57 0.66

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 23,196 ÷ 38,432 = 0.60

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 23,314 ÷ 38,012 = 0.61

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Eaton Corp. plc adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 11,675 8,746 7,511 9,178 8,728
Current liabilities 7,747 6,360 7,212 5,881 5,132
Liquidity Ratio
Current ratio1 1.51 1.38 1.04 1.56 1.70
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 11,713 8,777 7,553 9,226 8,777
Adjusted current liabilities3 7,137 5,871 6,817 5,651 4,898
Liquidity Ratio
Adjusted current ratio4 1.64 1.49 1.11 1.63 1.79

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,675 ÷ 7,747 = 1.51

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 11,713 ÷ 7,137 = 1.64

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Eaton Corp. plc adjusted current ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 9,269 8,655 8,579 8,058 8,322
Total Eaton shareholders’ equity 19,036 17,038 16,413 14,930 16,082
Solvency Ratio
Debt to equity1 0.49 0.51 0.52 0.54 0.52
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 9,937 9,241 9,036 8,500 8,774
Adjusted total equity3 19,854 17,980 17,311 15,419 16,626
Solvency Ratio
Adjusted debt to equity4 0.50 0.51 0.52 0.55 0.53

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity = Total debt ÷ Total Eaton shareholders’ equity
= 9,269 ÷ 19,036 = 0.49

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 9,937 ÷ 19,854 = 0.50

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Eaton Corp. plc adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 9,269 8,655 8,579 8,058 8,322
Total capital 28,305 25,693 24,992 22,988 24,404
Solvency Ratio
Debt to capital1 0.33 0.34 0.34 0.35 0.34
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 9,937 9,241 9,036 8,500 8,774
Adjusted total capital3 29,791 27,221 26,347 23,919 25,400
Solvency Ratio
Adjusted debt to capital4 0.33 0.34 0.34 0.36 0.35

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,269 ÷ 28,305 = 0.33

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 9,937 ÷ 29,791 = 0.33

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Eaton Corp. plc adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 38,432 35,014 34,027 31,824 32,805
Total Eaton shareholders’ equity 19,036 17,038 16,413 14,930 16,082
Solvency Ratio
Financial leverage1 2.02 2.06 2.07 2.13 2.04
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 38,012 34,715 33,677 31,446 32,482
Adjusted total equity3 19,854 17,980 17,311 15,419 16,626
Solvency Ratio
Adjusted financial leverage4 1.91 1.93 1.95 2.04 1.95

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Financial leverage = Total assets ÷ Total Eaton shareholders’ equity
= 38,432 ÷ 19,036 = 2.02

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 38,012 ÷ 19,854 = 1.91

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Eaton Corp. plc adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Eaton ordinary shareholders 3,218 2,462 2,144 1,410 2,211
Net sales 23,196 20,752 19,628 17,858 21,390
Profitability Ratio
Net profit margin1 13.87% 11.86% 10.92% 7.90% 10.34%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 3,216 2,037 2,773 1,513 1,986
Adjusted net sales3 23,314 20,838 19,793 17,881 21,376
Profitability Ratio
Adjusted net profit margin4 13.79% 9.78% 14.01% 8.46% 9.29%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to Eaton ordinary shareholders ÷ Net sales
= 100 × 3,218 ÷ 23,196 = 13.87%

2 Adjusted net income. See details »

3 Adjusted net sales. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net sales
= 100 × 3,216 ÷ 23,314 = 13.79%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Eaton Corp. plc adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Eaton ordinary shareholders 3,218 2,462 2,144 1,410 2,211
Total Eaton shareholders’ equity 19,036 17,038 16,413 14,930 16,082
Profitability Ratio
ROE1 16.90% 14.45% 13.06% 9.44% 13.75%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 3,216 2,037 2,773 1,513 1,986
Adjusted total equity3 19,854 17,980 17,311 15,419 16,626
Profitability Ratio
Adjusted ROE4 16.20% 11.33% 16.02% 9.81% 11.95%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROE = 100 × Net income attributable to Eaton ordinary shareholders ÷ Total Eaton shareholders’ equity
= 100 × 3,218 ÷ 19,036 = 16.90%

2 Adjusted net income. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 3,216 ÷ 19,854 = 16.20%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Eaton Corp. plc adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Eaton ordinary shareholders 3,218 2,462 2,144 1,410 2,211
Total assets 38,432 35,014 34,027 31,824 32,805
Profitability Ratio
ROA1 8.37% 7.03% 6.30% 4.43% 6.74%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 3,216 2,037 2,773 1,513 1,986
Adjusted total assets3 38,012 34,715 33,677 31,446 32,482
Profitability Ratio
Adjusted ROA4 8.46% 5.87% 8.23% 4.81% 6.11%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROA = 100 × Net income attributable to Eaton ordinary shareholders ÷ Total assets
= 100 × 3,218 ÷ 38,432 = 8.37%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 3,216 ÷ 38,012 = 8.46%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Eaton Corp. plc adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.