Stock Analysis on Net
Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Eaton Corp. plc, common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Short-term debt 0.00 0.00 0.02 0.93 0.04
Current portion of long-term debt 2.75 1.76 2.65 0.03 5.10
Accounts payable 10.10 9.58 8.76 8.77 8.22
Accrued compensation 1.56 1.75 1.76 1.33 1.47
Other current liabilities 8.29 7.39 6.98 7.10 6.37
Current liabilities 22.71% 20.47% 20.16% 18.16% 21.19%
Long-term debt, excluding current portion 21.23 22.09 21.45 23.76 20.08
Pension liabilities 1.70 1.93 2.00 1.85 2.56
Other postretirement benefits liabilities 0.39 0.43 0.47 0.51 0.77
Noncurrent operating lease liabilities 1.54 1.74 1.39 1.31 0.99
Deferred income taxes 0.64 0.72 1.05 1.51 1.64
Other noncurrent liabilities 4.58 4.34 3.87 4.12 4.41
Noncurrent liabilities 30.09% 31.25% 30.22% 33.07% 30.46%
Total liabilities 52.80% 51.72% 50.38% 51.24% 51.65%
Ordinary shares 0.01 0.01 0.01 0.01 0.01
Capital in excess of par value 31.12 33.17 32.87 35.74 36.59
Retained earnings 25.94 26.30 26.81 24.18 22.32
Accumulated other comprehensive loss -9.98 -11.31 -10.16 -11.27 -10.68
Shares held in trust 0.00 0.00 0.00 0.00 0.00
Total Eaton shareholders’ equity 47.09% 48.17% 49.53% 48.66% 48.24%
Noncontrolling interests 0.11 0.11 0.09 0.11 0.11
Total equity 47.20% 48.28% 49.62% 48.76% 48.35%
Total liabilities and equity 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 liabilities and stockholders’ equity exhibited several notable shifts between 2021 and 2025. Overall, total liabilities remained relatively stable, fluctuating between 51.24% and 52.80% of total liabilities and equity, while total equity experienced a slight decline over the period.

Short-Term Debt
A significant increase in short-term debt was observed between 2021 and 2022, rising from 0.04% to 0.93%. However, this was followed by a substantial decrease to 0.02% in 2023 and further to 0.00% in 2025, indicating a strategic shift away from reliance on short-term financing.
Current Liabilities
Current liabilities decreased from 21.19% in 2021 to 18.16% in 2022, then increased to 22.71% in 2025. Accounts payable consistently represented the largest component of current liabilities, increasing from 8.22% to 10.10% over the period. Other current liabilities also showed an increasing trend, rising from 6.37% to 8.29%.
Long-Term Debt
Long-term debt, excluding the current portion, remained a substantial portion of the capital structure, ranging from 20.08% to 23.76%. While it decreased slightly to 21.23% in 2025, it remained a key component of the company’s financing. The current portion of long-term debt showed volatility, peaking at 5.10% in 2021 and declining to 2.75% in 2025.
Noncurrent Liabilities
Noncurrent liabilities demonstrated a moderate increase from 30.46% in 2021 to 33.07% in 2022, followed by a slight decrease to 30.09% in 2025. Pension liabilities and other postretirement benefit liabilities both experienced gradual declines throughout the period, while noncurrent operating lease liabilities showed a consistent, albeit modest, increase.
Stockholders’ Equity
Total stockholders’ equity decreased from 48.35% in 2021 to 47.20% in 2025. Within equity, retained earnings increased from 22.32% to 26.81% in 2023 before decreasing to 25.94% in 2025. Capital in excess of par value also showed a decreasing trend, moving from 36.59% to 31.12%. Accumulated other comprehensive loss remained consistently negative, fluctuating between -10.16% and -11.31%.
Total Liabilities vs. Equity
The proportion of total liabilities to total equity remained relatively balanced throughout the period. While liabilities experienced a slight increase overall, equity’s gradual decline contributed to a marginally higher liability ratio by 2025. Noncontrolling interests remained consistently low, representing less than 0.12% of total liabilities and equity.

In summary, the company demonstrated a dynamic approach to its capital structure, reducing short-term debt while maintaining a substantial level of long-term financing. Changes within equity suggest a balance between reinvested earnings and potential share repurchases or dividend distributions. The overall stability of the liability-to-equity ratio indicates a consistent financial profile.

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