Return on Equity (ROE)
since 2005
Calculation
Eaton Corp. plc, ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Eaton ordinary shareholders1 | ÷ | Total Eaton shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 21.04% | = | 100 | × | 4,087) | ÷ | 19,425) |
| Dec 31, 2024 | 20.52% | = | 100 | × | 3,794) | ÷ | 18,488) |
| Dec 31, 2023 | 16.90% | = | 100 | × | 3,218) | ÷ | 19,036) |
| Dec 31, 2022 | 14.45% | = | 100 | × | 2,462) | ÷ | 17,038) |
| Dec 31, 2021 | 13.06% | = | 100 | × | 2,144) | ÷ | 16,413) |
| Dec 31, 2020 | 9.44% | = | 100 | × | 1,410) | ÷ | 14,930) |
| Dec 31, 2019 | 13.75% | = | 100 | × | 2,211) | ÷ | 16,082) |
| Dec 31, 2018 | 13.32% | = | 100 | × | 2,145) | ÷ | 16,107) |
| Dec 31, 2017 | 17.30% | = | 100 | × | 2,985) | ÷ | 17,253) |
| Dec 31, 2016 | 12.90% | = | 100 | × | 1,922) | ÷ | 14,897) |
| Dec 31, 2015 | 13.03% | = | 100 | × | 1,979) | ÷ | 15,186) |
| Dec 31, 2014 | 11.36% | = | 100 | × | 1,793) | ÷ | 15,786) |
| Dec 31, 2013 | 11.08% | = | 100 | × | 1,861) | ÷ | 16,791) |
| Dec 31, 2012 | 8.07% | = | 100 | × | 1,217) | ÷ | 15,086) |
| Dec 31, 2011 | 18.07% | = | 100 | × | 1,350) | ÷ | 7,469) |
| Dec 31, 2010 | 12.62% | = | 100 | × | 929) | ÷ | 7,362) |
| Dec 31, 2009 | 5.65% | = | 100 | × | 383) | ÷ | 6,777) |
| Dec 31, 2008 | 16.75% | = | 100 | × | 1,058) | ÷ | 6,317) |
| Dec 31, 2007 | 19.22% | = | 100 | × | 994) | ÷ | 5,172) |
| Dec 31, 2006 | 23.14% | = | 100 | × | 950) | ÷ | 4,106) |
| Dec 31, 2005 | 21.31% | = | 100 | × | 805) | ÷ | 3,778) |
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 equity (ROE) for the period between 2005 and 2025 demonstrates considerable fluctuation. Initially, the ROE exhibited a period of growth, followed by significant volatility, and ultimately concluded with a sustained upward trend in recent years.
- Initial Growth & Subsequent Decline (2005-2009)
- From 2005 to 2006, ROE increased from 21.31% to 23.14%, indicating improving profitability relative to shareholder equity. However, this was followed by a decline, reaching a low of 5.65% in 2009. This decrease coincided with a substantial reduction in net income attributable to ordinary shareholders in 2009, while equity remained relatively stable. This suggests a significant impact from external factors or internal challenges affecting earnings during that year.
- Volatility and Recovery (2010-2014)
- The period between 2010 and 2014 was characterized by volatility. ROE recovered to 12.62% in 2010, peaked at 18.07% in 2011, then experienced a sharp drop to 8.07% in 2012, largely due to a considerable increase in total shareholders’ equity. Subsequent years saw a moderate recovery, with ROE stabilizing between 11.08% and 13.03% from 2013 to 2015. Net income fluctuated during this period, but remained relatively consistent, suggesting that changes in equity were the primary driver of ROE variations.
- Recent Upward Trend (2016-2025)
- From 2016 onwards, ROE generally trended upwards. A peak of 17.30% was observed in 2017, followed by a slight decrease in 2018. However, ROE continued to climb, reaching 16.90% in 2020, 20.52% in 2022, and culminating in 21.04% in 2025. This increase aligns with a consistent rise in net income attributable to ordinary shareholders, coupled with a more moderate growth in total shareholders’ equity. The most recent years demonstrate a strong correlation between increased profitability and improved returns for shareholders.
Overall, the ROE demonstrates a company that has navigated periods of economic challenge and has recently achieved a sustained period of improved financial performance. The recent trend suggests increasing efficiency in utilizing shareholder equity to generate profits.
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Comparison to Competitors
Eaton Corp. plc, ROE, long-term trends, comparison to competitors
| Eaton Corp. plc | Boeing Co. | Caterpillar Inc. | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 21.04% | 40.98% | 41.67% | 46.60% | 34.01% | 74.65% | 10.32% |
| Dec 31, 2024 | 20.52% | — | 55.37% | 33.90% | 30.64% | 84.26% | 7.94% |
| Dec 31, 2023 | 16.90% | — | 53.02% | 34.63% | 35.68% | 101.24% | 5.34% |
| Dec 31, 2022 | 14.45% | — | 42.25% | 0.62% | 29.74% | 61.86% | 7.16% |
| Dec 31, 2021 | 13.06% | — | 39.37% | -16.17% | 29.85% | 57.62% | 5.29% |
| Dec 31, 2020 | 9.44% | — | 19.56% | 16.04% | 27.23% | 113.60% | -4.88% |
| Dec 31, 2019 | 13.75% | — | 41.77% | -17.58% | 33.22% | 199.23% | 13.25% |
| Dec 31, 2018 | 13.32% | 3,085.55% | 43.79% | -72.16% | 37.21% | 361.98% | 13.70% |
| Dec 31, 2017 | 17.30% | 2,309.01% | 5.50% | -9.00% | 9.58% | — | 15.37% |
| Dec 31, 2016 | 12.90% | 599.14% | -0.51% | 11.65% | 24.83% | 350.89% | 18.33% |
| Dec 31, 2015 | 13.03% | 81.70% | 14.19% | -6.23% | 26.08% | 116.40% | 27.81% |
| Dec 31, 2014 | 11.36% | 62.85% | 22.06% | 11.89% | 24.01% | 106.29% | 19.93% |
| Dec 31, 2013 | 11.08% | 30.82% | 18.21% | 10.00% | 22.47% | 60.61% | 17.95% |
| Dec 31, 2012 | 8.07% | 66.47% | 32.40% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Dec 31, 2011 | 18.07% | 114.31% | 38.25% | 12.15% | 19.13% | 265.23% | 22.76% |
| Dec 31, 2010 | 12.62% | 119.56% | 24.94% | 9.79% | 18.96% | 78.91% | 20.45% |
| Dec 31, 2009 | 5.65% | 61.65% | 10.24% | 9.40% | 24.34% | 73.24% | 19.08% |
| Dec 31, 2008 | 16.75% | — | 58.44% | 16.63% | 38.85% | 112.29% | 29.46% |
| Dec 31, 2007 | 19.22% | 45.25% | 39.86% | 19.22% | 26.50% | 30.93% | 19.78% |
| Dec 31, 2006 | 23.14% | 46.74% | 51.57% | 18.55% | 21.43% | 36.74% | 21.58% |
| Dec 31, 2005 | 21.31% | 23.26% | 33.85% | 14.95% | 14.71% | 23.20% | 18.06% |
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)
Eaton Corp. plc, ROE, long-term trends, comparison to sector (capital goods)
| Eaton Corp. plc | Capital Goods | |
|---|---|---|
| Dec 31, 2025 | 21.04% | 26.79% |
| Dec 31, 2024 | 20.52% | 18.15% |
| Dec 31, 2023 | 16.90% | 27.89% |
| Dec 31, 2022 | 14.45% | 13.39% |
| Dec 31, 2021 | 13.06% | 8.48% |
| Dec 31, 2020 | 9.44% | 4.42% |
| Dec 31, 2019 | 13.75% | 18.11% |
| Dec 31, 2018 | 13.32% | 11.28% |
| Dec 31, 2017 | 17.30% | 10.13% |
| Dec 31, 2016 | 12.90% | 20.08% |
| Dec 31, 2015 | 13.03% | 10.42% |
| Dec 31, 2014 | 11.36% | 18.16% |
| Dec 31, 2013 | 11.08% | 15.14% |
| Dec 31, 2012 | 8.07% | 17.58% |
| Dec 31, 2011 | 18.07% | 19.63% |
| Dec 31, 2010 | 12.62% | 15.88% |
| Dec 31, 2009 | 5.65% | 13.47% |
| Dec 31, 2008 | 16.75% | 24.97% |
| Dec 31, 2007 | 19.22% | 22.64% |
| Dec 31, 2006 | 23.14% | 22.16% |
| Dec 31, 2005 | 21.31% | 17.27% |
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 Industry (Industrials)
Eaton Corp. plc, ROE, long-term trends, comparison to industry (industrials)
| Eaton Corp. plc | Industrials | |
|---|---|---|
| Dec 31, 2025 | 21.04% | 27.59% |
| Dec 31, 2024 | 20.52% | 23.51% |
| Dec 31, 2023 | 16.90% | 27.70% |
| Dec 31, 2022 | 14.45% | 15.38% |
| Dec 31, 2021 | 13.06% | 15.38% |
| Dec 31, 2020 | 9.44% | 0.24% |
| Dec 31, 2019 | 13.75% | 14.56% |
| Dec 31, 2018 | 13.32% | 17.95% |
| Dec 31, 2017 | 17.30% | 18.24% |
| Dec 31, 2016 | 12.90% | 21.69% |
| Dec 31, 2015 | 13.03% | 16.11% |
| Dec 31, 2014 | 11.36% | 19.68% |
| Dec 31, 2013 | 11.08% | 16.40% |
| Dec 31, 2012 | 8.07% | 17.20% |
| Dec 31, 2011 | 18.07% | 20.10% |
| Dec 31, 2010 | 12.62% | 16.41% |
| Dec 31, 2009 | 5.65% | 12.84% |
| Dec 31, 2008 | 16.75% | 20.74% |
| Dec 31, 2007 | 19.22% | 20.36% |
| Dec 31, 2006 | 23.14% | 32.16% |
| Dec 31, 2005 | 21.31% | 7.80% |
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).