Common-Size Balance Sheet: Assets
Quarterly Data
Eaton Corp. plc, common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Cash and Short-term Investments
- Cash as a percentage of total assets shows moderate fluctuations without a consistent long-term trend, ranging mostly between 0.6% and 1.5%, except for a notable spike to 4.53% at March 31, 2025, followed by a return near prior levels. Short-term investments exhibit more volatility, rising sharply to 5.52% and above during late 2023 and early 2024, then declining steeply below 1% by mid-2025. This suggests intermittent shifts in short-term liquidity positions and possible changes in investment strategies over time.
- Accounts Receivable and Inventory
- Both accounts receivable and inventory as percentages of total assets demonstrate gradual increases over the years. Accounts receivable rose from approximately 9.5% in early 2020 to over 13.5% by mid-2025, indicating growth in credit sales or slower collections. Inventory similarly increased from around 7.6% in early 2020 to above 11% by mid-2025, which might point to expanded production or stock accumulation. These trends reflect a growing working capital tied up in operational assets.
- Current Assets
- The total current assets portion of total assets fluctuates moderately, declining noticeably in mid-2020 to below 22% before recovering steadily to peak near 32% in mid-2024 and stabilizing around 29-31% subsequently. This pattern correlates with movements in cash, receivables, and inventory levels, indicating cyclical changes in liquidity and working capital management.
- Property, Plant, and Equipment (PPE)
- Gross PPE as a percentage of total assets declined from approximately 23.7% to around 22% in 2020-2021, then generally stabilized between 22% and 23.7%. Accumulated depreciation remains fairly stable near -13.5%, resulting in net PPE staying fairly constant around 9-10% throughout the period, with a slight upward trend after mid-2021. This suggests steady maintenance or modest growth in fixed assets without significant divestitures or large capital expenditures.
- Goodwill and Other Intangible Assets
- Goodwill constitutes the largest single asset category, representing about 40% of total assets early on and progressively decreasing to near 38-39% by late 2024, followed by relatively stable levels. Other intangible assets initially increased from 14% to over 17% by late 2021 before a gradual decline to below 13% by mid-2025. These changes may reflect amortization effects, impairments, or acquisition activity impacting intangible asset balances.
- Operating Lease Assets and Deferred Income Taxes
- Operating lease assets increased modestly from about 1.4% to over 2% of total assets by late 2024, indicating either new lease agreements or capitalization of additional lease rights. Deferred income taxes fluctuate slightly but maintain a general increasing trend from around 1.1% to above 1.5%, potentially driven by timing differences in tax recognition or changes in deferred tax positions.
- Other Assets and Noncurrent Assets
- Other assets remain relatively stable between 5.3% and 6%, while the broader category of other noncurrent assets exhibits a declining trend from approximately 62% in early 2020 to near 59-60% by mid-2025. Consequently, the total noncurrent assets portion of total assets moved downward gradually from nearly 72% to about 69-70%, suggesting a small shift towards relatively higher current assets over the analyzed period.
- General Observations
- The asset composition indicates a firm with significant intangible assets and a relatively stable net PPE base. The gradual increase in accounts receivable and inventory as a share of assets points to growing operational scale or changes in business processes with greater working capital requirements. Variations in liquidity components, particularly sharp fluctuations in short-term investments in 2023 and 2024, may signal tactical responses to market conditions or financing needs. Overall, the data suggest steady asset base management with shifts toward a slightly more liquid asset structure in recent years.