Analysis of Debt
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
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Total Debt (Carrying Amount)
Eaton Corp. plc, balance sheet: debt
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Short-term debt | ||||||
| Current portion of long-term debt | ||||||
| Long-term debt, excluding current portion | ||||||
| Total debt (carrying amount) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Total debt exhibited a generally increasing trend over the five-year period, although with some fluctuations. A significant shift in the composition of short-term versus long-term debt is also apparent. The analysis below details these observations.
- Overall Debt Trend
- The carrying amount of total debt began at US$8,579 million in 2021 and increased to US$9,895 million by 2025. While there was a slight decrease between 2023 and 2024, the overall trajectory indicates a net increase in debt over the period. The largest single-year increase occurred between 2021 and 2022, followed by a substantial increase between 2022 and 2023.
- Short-Term Debt Volatility
- Short-term debt demonstrated considerable volatility. It rose dramatically from US$13 million in 2021 to US$324 million in 2022, before falling back to US$8 million in 2023. Values for 2024 are unavailable, but the reported value for 2025 is US$1 million, suggesting a return to levels similar to those observed in 2021.
- Current Portion of Long-Term Debt
- The current portion of long-term debt fluctuated significantly. It decreased substantially from US$1,735 million in 2021 to US$10 million in 2022. This was followed by an increase to US$1,017 million in 2023, a further increase to US$674 million in 2024, and finally to US$1,136 million in 2025. This suggests active management of debt maturities and reclassifications between long-term and short-term obligations.
- Long-Term Debt Stability
- Long-term debt, excluding the current portion, remained relatively stable throughout the period. It began at US$6,831 million in 2021 and increased gradually to US$8,758 million in 2025. The annual changes were comparatively modest, indicating a consistent approach to long-term financing. The largest increase occurred between 2021 and 2022, mirroring the overall trend in total debt.
The observed changes in short-term debt and the current portion of long-term debt suggest a dynamic approach to debt management, potentially influenced by interest rate environments or strategic financing decisions. The consistent growth in long-term debt indicates a continued reliance on longer-term funding sources.
Total Debt (Fair Value)
| Dec 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term debt | |
| Long-term debt and current portion of long-term debt | |
| Total debt (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2025-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =