Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Eaton Corp. plc, ROA, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The Return on Assets (ROA) for the period examined demonstrates considerable fluctuation. Initially, the ROA exhibited a generally positive trend from 2005 to 2007, followed by a significant decline in 2008 and a substantial drop in 2009. Subsequent years show a recovery and then further volatility, culminating in a peak in 2017 before stabilizing at a higher level in recent years.

Initial Trend (2005-2007)
From 2005 to 2006, the ROA increased from 7.88% to 8.32%, indicating improved profitability relative to asset base. A slight decrease to 7.40% in 2007 suggests a moderation of this positive momentum.
Decline and Recovery (2008-2011)
The ROA experienced a marked decline in 2008, falling to 6.35%, and reached its lowest point in 2009 at 2.35%. This period likely reflects challenges impacting profitability or a significant increase in the asset base. A recovery commenced in 2010, with the ROA rising to 5.38%, and continued through 2011, reaching 7.55%.
Volatility and Peak (2012-2017)
The ROA exhibited volatility between 2012 and 2017. It decreased to 3.39% in 2012, then increased to 5.24% in 2013 and 5.35% in 2014. A steady increase followed, culminating in a peak of 9.15% in 2017. This suggests a period of effective asset utilization and strong profitability.
Recent Performance (2018-2025)
Following the peak in 2017, the ROA decreased to 6.90% in 2018 and 6.74% in 2019. A decline to 4.43% in 2020 was observed, potentially influenced by external economic factors. The ROA then recovered, reaching 6.30% in 2021 and 7.03% in 2022, before continuing its upward trajectory to 8.37% in 2023, 9.89% in 2024, and 9.91% in 2025. This recent performance indicates a sustained improvement in the efficiency with which assets are employed to generate profits.

Overall, the ROA demonstrates a cyclical pattern with periods of growth, decline, and recovery. The most recent trend indicates a strengthening of the company’s ability to generate earnings from its assets, reaching its highest levels in the observed period.


Comparison to Competitors

Eaton Corp. plc, ROA, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Capital Goods)


Comparison to Industry (Industrials)