Stock Analysis on Net
Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Eaton Corp. plc, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 16.90% = 8.37% × 2.02
Sep 30, 2023 16.29% = 8.03% × 2.03
Jun 30, 2023 15.10% = 7.37% × 2.05
Mar 31, 2023 14.72% = 7.23% × 2.04
Dec 31, 2022 14.45% = 7.03% × 2.06
Sep 30, 2022 14.26% = 6.67% × 2.14
Jun 30, 2022 14.12% = 6.58% × 2.15
Mar 31, 2022 13.35% = 6.30% × 2.12
Dec 31, 2021 13.06% = 6.30% × 2.07
Sep 30, 2021 12.95% = 6.06% × 2.14
Jun 30, 2021 12.23% = 5.12% × 2.39
Mar 31, 2021 9.54% = 4.20% × 2.27
Dec 31, 2020 9.44% = 4.43% × 2.13
Sep 30, 2020 9.58% = 4.48% × 2.14
Jun 30, 2020 10.87% = 5.08% × 2.14
Mar 31, 2020 14.93% = 6.90% × 2.17
Dec 31, 2019 13.75% = 6.74% × 2.04
Sep 30, 2019 — = — × 2.01
Jun 30, 2019 — = — × 1.98
Mar 31, 2019 — = — × 1.95

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Eaton Corp. plc, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 16.90% = 13.87% × 0.60 × 2.02
Sep 30, 2023 16.29% = 13.24% × 0.61 × 2.03
Jun 30, 2023 15.10% = 12.30% × 0.60 × 2.05
Mar 31, 2023 14.72% = 12.00% × 0.60 × 2.04
Dec 31, 2022 14.45% = 11.86% × 0.59 × 2.06
Sep 30, 2022 14.26% = 11.36% × 0.59 × 2.14
Jun 30, 2022 14.12% = 11.70% × 0.56 × 2.15
Mar 31, 2022 13.35% = 11.21% × 0.56 × 2.12
Dec 31, 2021 13.06% = 10.92% × 0.58 × 2.07
Sep 30, 2021 12.95% = 10.60% × 0.57 × 2.14
Jun 30, 2021 12.23% = 9.86% × 0.52 × 2.39
Mar 31, 2021 9.54% = 8.05% × 0.52 × 2.27
Dec 31, 2020 9.44% = 7.90% × 0.56 × 2.13
Sep 30, 2020 9.58% = 7.53% × 0.59 × 2.14
Jun 30, 2020 10.87% = 8.03% × 0.63 × 2.14
Mar 31, 2020 14.93% = 10.19% × 0.68 × 2.17
Dec 31, 2019 13.75% = 10.34% × 0.65 × 2.04
Sep 30, 2019 — = — × — × 2.01
Jun 30, 2019 — = — × — × 1.98
Mar 31, 2019 — = — × — × 1.95

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Eaton Corp. plc, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 16.90% = 0.84 × 0.96 × 17.13% × 0.60 × 2.02
Sep 30, 2023 16.29% = 0.84 × 0.95 × 16.61% × 0.61 × 2.03
Jun 30, 2023 15.10% = 0.84 × 0.95 × 15.42% × 0.60 × 2.05
Mar 31, 2023 14.72% = 0.84 × 0.95 × 15.01% × 0.60 × 2.04
Dec 31, 2022 14.45% = 0.85 × 0.95 × 14.70% × 0.59 × 2.06
Sep 30, 2022 14.26% = 0.85 × 0.95 × 13.95% × 0.59 × 2.14
Jun 30, 2022 14.12% = 0.75 × 0.96 × 16.22% × 0.56 × 2.15
Mar 31, 2022 13.35% = 0.75 × 0.96 × 15.74% × 0.56 × 2.12
Dec 31, 2021 13.06% = 0.74 × 0.95 × 15.48% × 0.58 × 2.07
Sep 30, 2021 12.95% = 0.73 × 0.95 × 15.21% × 0.57 × 2.14
Jun 30, 2021 12.23% = 0.84 × 0.94 × 12.47% × 0.52 × 2.39
Mar 31, 2021 9.54% = 0.86 × 0.92 × 10.19% × 0.52 × 2.27
Dec 31, 2020 9.44% = 0.81 × 0.92 × 10.58% × 0.56 × 2.13
Sep 30, 2020 9.58% = 0.81 × 0.91 × 10.24% × 0.59 × 2.14
Jun 30, 2020 10.87% = 0.81 × 0.91 × 10.90% × 0.63 × 2.14
Mar 31, 2020 14.93% = 0.82 × 0.93 × 13.47% × 0.68 × 2.17
Dec 31, 2019 13.75% = 0.85 × 0.92 × 13.21% × 0.65 × 2.04
Sep 30, 2019 — = — × — × — × — × 2.01
Jun 30, 2019 — = — × — × — × — × 1.98
Mar 31, 2019 — = — × — × — × — × 1.95

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Eaton Corp. plc, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 8.37% = 13.87% × 0.60
Sep 30, 2023 8.03% = 13.24% × 0.61
Jun 30, 2023 7.37% = 12.30% × 0.60
Mar 31, 2023 7.23% = 12.00% × 0.60
Dec 31, 2022 7.03% = 11.86% × 0.59
Sep 30, 2022 6.67% = 11.36% × 0.59
Jun 30, 2022 6.58% = 11.70% × 0.56
Mar 31, 2022 6.30% = 11.21% × 0.56
Dec 31, 2021 6.30% = 10.92% × 0.58
Sep 30, 2021 6.06% = 10.60% × 0.57
Jun 30, 2021 5.12% = 9.86% × 0.52
Mar 31, 2021 4.20% = 8.05% × 0.52
Dec 31, 2020 4.43% = 7.90% × 0.56
Sep 30, 2020 4.48% = 7.53% × 0.59
Jun 30, 2020 5.08% = 8.03% × 0.63
Mar 31, 2020 6.90% = 10.19% × 0.68
Dec 31, 2019 6.74% = 10.34% × 0.65
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Eaton Corp. plc, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 8.37% = 0.84 × 0.96 × 17.13% × 0.60
Sep 30, 2023 8.03% = 0.84 × 0.95 × 16.61% × 0.61
Jun 30, 2023 7.37% = 0.84 × 0.95 × 15.42% × 0.60
Mar 31, 2023 7.23% = 0.84 × 0.95 × 15.01% × 0.60
Dec 31, 2022 7.03% = 0.85 × 0.95 × 14.70% × 0.59
Sep 30, 2022 6.67% = 0.85 × 0.95 × 13.95% × 0.59
Jun 30, 2022 6.58% = 0.75 × 0.96 × 16.22% × 0.56
Mar 31, 2022 6.30% = 0.75 × 0.96 × 15.74% × 0.56
Dec 31, 2021 6.30% = 0.74 × 0.95 × 15.48% × 0.58
Sep 30, 2021 6.06% = 0.73 × 0.95 × 15.21% × 0.57
Jun 30, 2021 5.12% = 0.84 × 0.94 × 12.47% × 0.52
Mar 31, 2021 4.20% = 0.86 × 0.92 × 10.19% × 0.52
Dec 31, 2020 4.43% = 0.81 × 0.92 × 10.58% × 0.56
Sep 30, 2020 4.48% = 0.81 × 0.91 × 10.24% × 0.59
Jun 30, 2020 5.08% = 0.81 × 0.91 × 10.90% × 0.63
Mar 31, 2020 6.90% = 0.82 × 0.93 × 13.47% × 0.68
Dec 31, 2019 6.74% = 0.85 × 0.92 × 13.21% × 0.65
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Eaton Corp. plc, decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 13.87% = 0.84 × 0.96 × 17.13%
Sep 30, 2023 13.24% = 0.84 × 0.95 × 16.61%
Jun 30, 2023 12.30% = 0.84 × 0.95 × 15.42%
Mar 31, 2023 12.00% = 0.84 × 0.95 × 15.01%
Dec 31, 2022 11.86% = 0.85 × 0.95 × 14.70%
Sep 30, 2022 11.36% = 0.85 × 0.95 × 13.95%
Jun 30, 2022 11.70% = 0.75 × 0.96 × 16.22%
Mar 31, 2022 11.21% = 0.75 × 0.96 × 15.74%
Dec 31, 2021 10.92% = 0.74 × 0.95 × 15.48%
Sep 30, 2021 10.60% = 0.73 × 0.95 × 15.21%
Jun 30, 2021 9.86% = 0.84 × 0.94 × 12.47%
Mar 31, 2021 8.05% = 0.86 × 0.92 × 10.19%
Dec 31, 2020 7.90% = 0.81 × 0.92 × 10.58%
Sep 30, 2020 7.53% = 0.81 × 0.91 × 10.24%
Jun 30, 2020 8.03% = 0.81 × 0.91 × 10.90%
Mar 31, 2020 10.19% = 0.82 × 0.93 × 13.47%
Dec 31, 2019 10.34% = 0.85 × 0.92 × 13.21%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q4 2023 is the increase in operating profitability measured by EBIT margin ratio.