Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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Eaton Corp. plc, common-size consolidated balance sheet: liabilities and stockholders’ equity
Based on: 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), 10-K (reporting date: 2020-12-31).
- Current liabilities
- Current liabilities as a percentage of total liabilities and equity showed some fluctuation, rising from 18.48% in 2020 to a peak of 21.19% in 2021, then decreasing to 18.16% in 2022 before rising again to around 20.4% in 2023 and 2024. This indicates a moderately stable but somewhat volatile short-term obligation structure.
- Short-term debt and current portion of long-term debt
- Short-term debt remained minimal throughout the period, generally close to zero, with a small spike to 0.93% in 2022. The current portion of long-term debt was highest in 2021 at 5.1%, dropped dramatically to 0.03% in 2022, then increased to 2.65% in 2023 and decreased again to 1.76% in 2024. This suggests variability in the maturity profile of debt obligations due within one year.
- Accounts payable and accrued compensation
- Accounts payable steadily increased from 6.24% in 2020 to 9.58% in 2024, indicating a growth in amounts owed to suppliers and creditors. Accrued compensation grew from 1.10% in 2020 to 1.76% in 2023 before stabilizing, signifying a gradual increase in employee-related liabilities.
- Other current liabilities
- Other current liabilities rose slightly from 6.37% in 2020 to 7.39% in 2024 following a modest peak of 7.10% in 2022. This moderate increase contributes to the overall current liabilities trend.
- Long-term debt and related liabilities
- Long-term debt (excluding the current portion) showed variability, decreasing from 22.03% in 2020 to 20.08% in 2021, then peaking at 23.76% in 2022 before settling around 22% in 2024. Pension liabilities declined notably from 4.99% in 2020 to under 2% by 2024, while other postretirement benefits liabilities similarly decreased from 1.04% to 0.43% over the same period. Noncurrent operating lease liabilities increased steadily from 1.02% to 1.74%, indicating growing lease commitments. Deferred income taxes initially rose from 0.87% to 1.64% between 2020 and 2021 but declined afterward to 0.72% by 2024. Other noncurrent liabilities gradually decreased slightly before a minor uptick in 2024. Overall, noncurrent liabilities fluctuated but remained around one-third of total liabilities and equity.
- Total liabilities
- Total liabilities maintained a relatively stable share, hovering around 51-53% throughout the period with a slight downward trend in 2023, reflecting consistent leverage levels.
- Equity components
- Ordinary shares remained stable around 0.01% of total liabilities and equity. Capital in excess of par value declined steadily from 38.74% in 2020 to around 33% by 2024. Retained earnings increased progressively from 21.35% to a peak of 26.81% in 2023 before slightly decreasing to 26.3% in 2024, indicative of retained profitability accumulation. The accumulated other comprehensive loss reduced from -13.18% in 2020 to less negative levels around -10.16% in 2023, but worsened again to -11.31% in 2024, signifying fluctuations in unrealized losses or gains affecting equity. Shares held in trust remained negligible throughout.
- Total equity
- Total Eaton shareholders’ equity increased from 46.91% in 2020 to 49.53% in 2023 and then declined slightly to 48.17% in 2024. Noncontrolling interests remained minimal and stable. Total equity as a percentage of the total liabilities and equity fluctuated marginally but stayed close to 48-50%.
- Overall capital structure
- The capital structure remained balanced over the five-year period, with total liabilities comprising slightly over half of the total financing, and equity making up just under half. Minor fluctuations in various components of liabilities and equity reflect ongoing operational and financial adjustments, with a general trend toward increased retained earnings and steady equity composition. The stability in total liabilities and equity percentages denotes consistent financial management with no drastic shifts in leverage or equity financing.