Stock Analysis on Net
Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

Common-Size Balance Sheet: Assets 

Eaton Corp. plc, common-size consolidated balance sheet: assets

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Cash 1.51 1.45 1.27 0.84 0.87
Short-term investments 0.44 3.97 5.52 0.75 0.80
Accounts receivable, net 13.06 12.03 11.64 11.64 9.69
Inventory 11.44 11.01 9.73 9.80 8.73
Prepaid expenses and other current assets 3.50 2.28 2.22 1.96 1.99
Current assets 29.95% 30.75% 30.38% 24.98% 22.07%
Net property, plant and equipment 10.46 9.72 9.19 8.99 9.00
Goodwill 38.23 38.33 38.97 42.26 43.35
Other intangible assets 12.25 12.14 13.25 15.67 17.21
Operating lease assets 1.86 2.10 1.69 1.63 1.30
Deferred income taxes 1.71 1.59 1.19 0.94 1.15
Other assets 5.53 5.38 5.34 5.54 5.91
Other noncurrent assets 59.59% 59.54% 60.44% 66.03% 68.92%
Noncurrent assets 70.05% 69.25% 69.62% 75.02% 77.93%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The composition of assets exhibited several notable shifts between 2021 and 2025. Current assets as a percentage of total assets increased significantly through 2023, peaking at 30.38%, before experiencing a slight decline to 29.95% in 2025. Conversely, noncurrent assets decreased as a proportion of the total, though remaining the dominant component of the asset base throughout the period.

Liquidity & Current Assets
Cash holdings increased steadily from 0.87% of total assets in 2021 to 1.51% in 2025, suggesting improved liquidity. Short-term investments experienced a substantial increase in 2023, reaching 5.52%, but then decreased significantly to 0.44% in 2025. Accounts receivable, net, demonstrated a consistent upward trend, rising from 9.69% to 13.06% of total assets. Inventory also increased, moving from 8.73% to 11.44% over the five-year period. Prepaid expenses and other current assets showed a more moderate increase, from 1.99% to 3.50%.
Long-Term Assets
Goodwill represented a substantial portion of the asset base, although its percentage of total assets decreased from 43.35% in 2021 to 38.23% in 2025. Other intangible assets also decreased as a percentage of total assets, declining from 17.21% to 12.25%. Net property, plant and equipment showed a gradual increase, from 9.00% to 10.46%. Operating lease assets increased from 1.30% to 1.86% over the period. Deferred income taxes increased from 1.15% to 1.71%.
Overall Asset Composition
The relative importance of goodwill and other intangible assets diminished over the period, while current assets and net property, plant and equipment became comparatively more significant. This suggests a potential shift in asset allocation, possibly indicating a move towards more liquid or operational assets. The decrease in short-term investments in 2025 warrants further investigation to understand the reason for the reduction.

The changes in asset composition suggest a dynamic approach to asset management. The increase in current assets could indicate a preparation for growth or a response to changing market conditions. The reduction in goodwill and intangible assets may reflect impairment charges or strategic divestitures.

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