Eaton Corp. plc (NYSE:ETN)

Current Assets

The current assets displayed a decline from 9,178 million US dollars at the end of 2020 to 7,511 million US dollars in 2021. Following this decrease, there was a recovery and growth trend observed in the subsequent years, with values rising to 8,746 million in 2022, then increasing more significantly to 11,675 million in 2023, and finally reaching 11,801 million in 2024. Overall, after an initial dip, current assets exhibited a substantial upward trajectory over the five-year period.

Adjusted Current Assets

Adjusted current assets mirrored the trends observed in current assets closely. Beginning at 9,226 million US dollars in 2020, there was a decline to 7,553 million in 2021. This was followed by a steady increase to 8,777 million in 2022, then a notable rise to 11,713 million in 2023, and a further slight increase to 11,856 million in 2024. The pattern indicates consistent adjustments to current assets that maintain the overall growth path after the initial reduction in 2021.

Total Assets

The total assets demonstrated a steady upward trend from 2020 to 2023, increasing from 31,824 million US dollars to 38,432 million US dollars. This represents a growth of approximately 20.8% over the four-year period. However, in 2024, there was a slight decrease in total assets to 38,381 million US dollars, indicating a minor contraction after several years of expansion.

Adjusted Total Assets

Similar to total assets, adjusted total assets also increased consistently from 31,446 million US dollars in 2020 to 38,012 million US dollars in 2023. This accounts for an approximate increase of 20.9% in the four years. In 2024, adjusted total assets experienced a small decline to 37,827 million US dollars, mirroring the trend observed in total assets and suggesting a slight adjustment or consolidation in asset base after previous growth.

Overall Assessment

The data indicates a solid asset growth trajectory over the reviewed period, with both total and adjusted total assets showing parallel trends. The minor decreases in 2024 might point to strategic asset management, potential divestitures, or market factors affecting asset valuation. Nonetheless, over the medium term, the company maintained asset growth, highlighting a generally expanding asset base.

Current Liabilities

The current liabilities exhibit a generally increasing trend over the five-year period. There is a noticeable rise from 5,881 million USD at the end of 2020 to 7,212 million USD in 2021, followed by a decline to 6,360 million USD in 2022. Subsequently, the figure rises significantly again to 7,747 million USD in 2023 and slightly increases further to 7,857 million USD in 2024. This fluctuation suggests periods of both tightening and loosening in short-term obligations, with a general upward movement indicating growing current liabilities.

Adjusted Current Liabilities

The adjusted current liabilities follow a similar pattern to the unadjusted current liabilities but are consistently lower in value. Starting at 5,651 million USD in 2020, the adjusted liabilities increase to 6,817 million USD in 2021, then decline to 5,871 million USD in 2022. The upward trend continues with an increase to 7,137 million USD in 2023 and a slight rise to 7,255 million USD in 2024. This parallel trend confirms that while adjustments affect the absolute levels, the overall pattern of short-term liabilities remains consistent.

Overall Insights

The data indicates that the company’s short-term financial obligations have generally grown over the reviewed period, despite some year-to-year volatility. The notable dip in 2022 for both current and adjusted liabilities is an exception within an otherwise upward trajectory. The stability of the adjusted current liabilities in relation to the unadjusted figures suggests that adjustments do not fundamentally alter the company's exposure but may reflect accounting or classification changes. The increasing trends in liabilities could imply a need for careful management of liquidity and working capital in the coming periods.

The analysis of the annual financial data reveals a consistent upward trend in both total liabilities and adjusted total liabilities over the five-year period.

Total liabilities

The total liabilities increased from $16,851 million in 2020 to $19,851 million in 2024. This represents a gradual rise each year, with the most significant increase observed between 2022 and 2023, where liabilities grew by approximately $1,423 million. The steady growth indicates expanding obligations or borrowing during the period in question.

Adjusted total liabilities

The adjusted total liabilities follow a similar upward trajectory, rising from $16,024 million in 2020 to $18,705 million in 2024. The growth is steady but slightly more subdued compared to the total liabilities. This adjusted figure also shows the largest increment between 2022 and 2023, aligning with the trend seen in total liabilities. The adjustment appears to consistently reduce the liability figures but maintains the overall increasing pattern.

Overall, the data reflect an expansion in the company's liabilities over the five years. The consistent increase suggests growing debt or obligations, which may imply investment in operations or financing activities. However, without corresponding asset or equity data, the impact on financial stability or leverage cannot be fully assessed. The parallel growth of adjusted liabilities indicates that the adjustments applied do not significantly change the underlying trend.

The financial data indicates a general upward trend in both total shareholders' equity and adjusted total equity over the five-year period, spanning from the end of 2020 to the end of 2024.

Total Eaton shareholders’ equity (US$ in millions)

From 2020 to 2023, total shareholders’ equity showed consistent growth, increasing from 14,930 million to 19,036 million. This represents an approximate cumulative increase of 27.5% over three years. However, in 2024, there is a slight decline to 18,488 million, indicating a correction or reduction after the previous growth period.

Adjusted total equity (US$ in millions)

Adjusted total equity followed a similar upward trajectory, rising from 15,419 million in 2020 to a peak of 19,854 million in 2023. This growth amounts to roughly 28.7% across the first four years. Similar to total shareholders’ equity, adjusted total equity experiences a decrease in 2024, falling to 19,123 million. This suggests the adjustment does not substantially alter the overall equity trend but reflects a comparable pattern of increase followed by a slight decline.

Comparative insights

Throughout the period, adjusted total equity consistently remains marginally higher than total shareholders’ equity by about 3-5%, indicating that the adjustments to equity do not cause large divergences but do reflect a slightly healthier equity position under adjusted measures. The peak in equity metrics in 2023 followed by a decline in 2024 may warrant further review to understand underlying causes such as market conditions, operational performance, or accounting adjustments.

Total reported debt

The total reported debt exhibited a gradual increase from 8058 million US dollars at the end of 2020 to 9269 million US dollars by the end of 2023, reflecting a rising leverage trend over this period. However, in 2024, a slight decrease to 9152 million US dollars was observed, indicating a modest reduction in debt levels.

Total Eaton shareholders’ equity

Shareholders’ equity showed consistent growth from 14930 million US dollars in 2020 to a peak of 19036 million US dollars in 2023, suggesting strengthening equity base and retained earnings accumulation. In 2024, equity slightly declined to 18488 million US dollars, indicating a minor contraction possibly related to changes in retained earnings or equity transactions.

Total reported capital

Total reported capital, being the sum of reported debt and shareholders' equity, increased steadily from 22988 million US dollars in 2020 to 28305 million US dollars in 2023. A slight decrease was noted in 2024, down to 27640 million US dollars, mirroring the trends in debt and equity components.

Adjusted total debt

The adjusted total debt figures were consistently higher than the reported debt, rising from 8500 million US dollars in 2020 to 9984 million US dollars in 2024. The upward trajectory reflects an increasing adjusted leverage, with incremental growth each year and a somewhat slower rise in the final year, indicating possible adjustments for off-balance sheet liabilities or other factors increasing the debt base.

Adjusted total equity

Adjusted total equity followed a growth pattern similar to reported equity, moving from 15419 million US dollars in 2020 up to 19854 million US dollars in 2023. It then slightly decreased to 19123 million US dollars in 2024. The adjustment appears to scale equity upwards to reflect fair value or other remeasurements, maintaining the growth trend until the dip in the latest year.

Adjusted total capital

Adjusted total capital, combining adjusted debt and equity, increased from 23919 million US dollars in 2020 to 29791 million US dollars in 2023. A small reduction to 29107 million US dollars occurred in 2024. Overall, adjusted capital demonstrated steady expansion over the period, consistent with growth in both components, before the recent slight decline.

The financial data reveals a consistent upward trend in both net sales and adjusted net sales over the five-year period from 2020 to 2024. Net sales increased steadily each year, starting from US$17,858 million in 2020 and reaching US$24,878 million in 2024. This growth reflects a compounded increase of approximately 39.3% over the examined timeframe.

Adjusted net sales follow a similar trajectory, beginning at US$17,881 million in 2020 and rising to US$24,870 million by 2024. The adjusted figures remain closely aligned with the reported net sales, indicating minor adjustments but overall confirming the upward sales trend.

Trend analysis

Both metrics exhibit consistent year-on-year growth without a decline in any period, suggesting positive business momentum and effective revenue generation strategies across successive years.

Magnitude of growth

The increase in net sales from 2020 to 2024 amounts to US$7,020 million, highlighting substantial expansion. Similarly, adjusted net sales increased by US$6,989 million over the same period, underscoring the reliability of reported sales figures.

Comparison of net sales and adjusted net sales

The slight variance between net sales and adjusted net sales is minimal, indicating that adjustments made to net sales are relatively minor and do not significantly alter the revenue picture.

Overall, the data indicates a stable and positive growth trajectory in sales revenue, with no significant fluctuations or volatility over the span of five years. This consistent growth trend may reflect effective market positioning, successful product offerings, or expanding market demand.

The financial data indicates a positive trajectory in net income attributable to ordinary shareholders over the five-year period ending December 31, 2024. The net income rose from $1,410 million in 2020 to $3,794 million in 2024, demonstrating consistent growth year over year. This upward trend reflects strengthening profitability.

Adjusted net income, which may exclude certain non-recurring items or reflect underlying business performance, shows some variability but generally aligns with the overall growth in net income. Starting at $1,513 million in 2020, adjusted net income peaked at $2,773 million in 2021 but then decreased to $2,037 million in 2022. Subsequently, it rebounded to $3,216 million in 2023 and slightly increased to $3,293 million in 2024.

Net Income

Exhibited consistent year-over-year growth, nearly tripling over the five-year period, indicating enhanced profitability and operational effectiveness.

Adjusted Net Income

Displayed more volatility, with a notable peak in 2021, a decline in 2022, followed by recovery and growth in subsequent years. This pattern may reflect impacts of one-time charges, adjustments or fluctuating market conditions affecting underlying earnings.

Overall, the data reveals an improving earnings trend with solid growth in both reported and adjusted profitability metrics, suggesting effective management of operations and potential resilience in the company’s core business activities across the analyzed period.