Analysis of Geographic Areas
Eaton Corp. plc operates in 5 regions: United States; Canada; Latin America; Europe; and Asia Pacific.
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Current Ratio since 2005
- Analysis of Debt
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Area Asset Turnover
Eaton Corp. plc, asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Canada | |||||
| Latin America | |||||
| Europe | |||||
| Asia Pacific |
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).
- United States
- The asset turnover ratio for the United States shows an overall increasing trend from 6.65 in 2020 to a peak of 7.94 in 2023, indicating improving efficiency in asset utilization over these years. However, there is a slight decline to 7.61 in 2024, suggesting a minor dip in performance but still maintaining a higher level compared to the starting value.
- Canada
- Canada exhibits strong asset turnover ratios throughout the period, starting at 30.28 in 2020 and fluctuating slightly before achieving a new high of 34.13 in 2024. This indicates robust and generally increasing asset utilization, with the highest efficiency seen in the most recent year recorded.
- Latin America
- Latin America's ratio shows moderate fluctuations with an initial increase from 3.77 in 2020 to 4.19 in 2021, followed by a decline in 2023 to the lowest point of 3.25. A recovery is observed in 2024 with a ratio of 3.61. Overall, the ratios indicate some volatility and challenges in maintaining consistent asset turnover improvement.
- Europe
- The European region shows a generally positive trend from 5.17 in 2020 to 6.10 in 2021, followed by a small decline and stabilization around 5.4 to 5.7 in subsequent years. This suggests moderate efficiency with some variability but no significant deterioration or improvement after 2021.
- Asia Pacific
- Asia Pacific's asset turnover ratio starts at 5.20 in 2020 and slightly increases to 5.40 in 2021, then declines to 4.75 in 2022 before recovering to 5.43 by 2024. This pattern indicates some short-term reduction in efficiency but an overall positive recovery by the end of the period.
Area Asset Turnover: United States
Eaton Corp. plc; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
The financial data for the United States geographic area over the five-year period ending in 2024 demonstrates notable growth and evolving efficiency.
- Net Sales
- Net sales have shown a consistent upward trend year-over-year, increasing from US$10,044 million in 2020 to US$15,151 million in 2024. This reflects a strong growth trajectory with the highest annual increments observed between 2021 to 2022 and 2022 to 2023, indicating expanding demand or market penetration over the period.
- Long-lived Assets
- Long-lived assets exhibit a generally increasing trend, rising from US$1,510 million in 2020 to US$1,990 million in 2024. There is a slight dip in 2022, but the asset base recovers and grows significantly in subsequent years, suggesting ongoing investment in fixed assets or property, plant, and equipment to support business operations and growth.
- Area Asset Turnover
- The ratio of area asset turnover, which measures how effectively assets generate sales, increased from 6.65 in 2020 to a peak of 7.94 in 2023, before declining modestly to 7.61 in 2024. The overall improvement signals enhanced efficiency in utilizing assets to produce revenue, albeit with a slight reduction in efficiency in the final year that may warrant further analysis.
Overall, the data reflects robust sales growth accompanied by expanding asset investment, with generally improving asset efficiency. The slight softening in asset turnover in the final year could indicate evolving operational dynamics or changes in asset utilization that should be monitored in subsequent periods.
Area Asset Turnover: Canada
Eaton Corp. plc; Canada; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
- Net Sales
- Net sales demonstrated an overall upward trend over the five-year period, increasing from $757 million in 2020 to $1,058 million in 2024. After a slight dip in 2022 to $754 million, sales rebounded significantly in 2023 and continued strong growth into 2024, indicating improved market performance or expanded operations in the geographic area.
- Long-lived Assets
- The value of long-lived assets remained steady at $25 million for the first three years from 2020 to 2022. In 2023, there was an increase to $31 million, where it remained stable through 2024. This suggests a capital investment or acquisition in long-term assets starting in 2023, reflective of possible strategic expansion or capacity enhancement.
- Area Asset Turnover
- Area asset turnover, a ratio indicating the efficiency of asset use to generate sales, showed relative stability with minor fluctuations from 30.28 in 2020 to 34.13 in 2024. The ratio peaked in 2021 at 31.88, decreased slightly in 2022 and 2023, then rose notably in 2024 to the highest level recorded in the period. The improvement in 2024 suggests enhanced asset productivity, likely linked to the increase in net sales and the stable long-lived assets.
- Overall Insights
- The data reflects a generally positive business trajectory in the Canada geographic area, characterized by increasing sales and a higher asset base starting in 2023. Despite a minor sales decline in 2022, the company managed to improve operational efficiency as evidenced by the rise in asset turnover in 2024. The capital investments made in long-lived assets appear to support the sales growth and improved asset utilization observed toward the end of the analyzed period.
Area Asset Turnover: Latin America
Eaton Corp. plc; Latin America; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
The financial data for the Latin America geographic area over the five-year period exhibits several key trends regarding sales, asset base, and asset utilization efficiency.
- Net Sales
- The net sales show a consistent upward trend, increasing from US$939 million in 2020 to US$1680 million in 2024. This reflects a cumulative growth of approximately 79% over the period, indicating expanding market demand or enhanced sales efforts in this region.
- Long-Lived Assets
- The value of long-lived assets also increased significantly from US$249 million in 2020 to a peak of US$476 million in 2023, before a slight decline to US$465 million in 2024. This overall growth in asset base suggests substantial investment in property, plant, and equipment or other capital-intensive assets to support business operations and sales growth.
- Area Asset Turnover
- The asset turnover ratio, which measures how efficiently assets generate sales, shows a varied pattern. It increased from 3.77 in 2020 to a peak of 4.19 in 2021, indicating improved efficiency that year. However, there was a decline in the following years to 3.25 in 2023, suggesting reduced efficiency, possibly due to rapid asset growth outpacing sales increases or operational challenges. In 2024, the ratio rebounded modestly to 3.61, indicating some recovery in asset utilization efficiency.
In summary, the data reveals strong sales growth underpinned by significant capital investments in long-lived assets. Despite fluctuations in asset turnover ratios, the overall trend suggests an effort to balance growth and asset efficiency, with a recent improvement pointing towards better utilization of assets in generating sales in the most recent year.
Area Asset Turnover: Europe
Eaton Corp. plc; Europe; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
The financial data for the Europe geographic area over the five-year period reveals several notable trends in revenue generation and asset utilization.
- Net Sales
- Net sales exhibited an overall upward trajectory. Starting at 3,818 million US dollars in 2020, sales increased to 4,276 million in 2021, followed by a slight dip to 3,957 million in 2022. Subsequently, there was a recovery and continued growth reaching 4,339 million in 2023 and 4,530 million in 2024. This pattern indicates resilience and a generally positive sales momentum despite the one-year decline.
- Long-lived Assets
- The value of long-lived assets showed moderate fluctuation throughout the period. The asset base slightly decreased from 738 million in 2020 to 701 million in 2021, then modestly increased to 711 million in 2022. A more pronounced rise occurred in 2023 to 797 million, after which the assets marginally declined to 790 million in 2024. This suggests relatively stable asset investment with some reinvestment activities, particularly in 2023.
- Area Asset Turnover
- Area asset turnover ratio, which measures revenue generated per unit of asset, experienced variability over the years. It rose significantly from 5.17 in 2020 to a peak of 6.1 in 2021, indicating improved efficiency. However, the ratio declined to 5.57 in 2022 and further to 5.44 in 2023 before recovering to 5.73 in 2024. This fluctuation mirrors the changes in sales and asset values, reflecting shifts in operational efficiency that correspond to investment and revenue changes.
In summary, the financial data for the Europe area shows growth in sales over the long term with a temporary setback in 2022, coupled with moderate investment in long-lived assets. The asset turnover ratio suggests variable efficiency in utilizing assets to generate sales, peaking in 2021 and partially recovering after a decline, indicating management's ability to adapt to changing market conditions and asset bases.
Area Asset Turnover: Asia Pacific
Eaton Corp. plc; Asia Pacific; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
The financial data for the Asia Pacific region reveals several notable trends across the five-year span from 2020 to 2024.
- Net Sales
- Net sales exhibited some fluctuations during the period. After an initial increase from 2300 million US dollars in 2020 to 2527 million in 2021, net sales decreased notably to 2185 million in 2022. This decline may indicate market challenges or shifts in demand during that year. However, net sales recovered in the subsequent years, reaching 2288 million in 2023 and growing further to 2459 million by 2024. Overall, despite the dip in 2022, net sales demonstrated a general upward trajectory from the start to the end of the period.
- Long-lived Assets
- Long-lived assets remained relatively stable throughout the timeframe. Starting at 442 million US dollars in 2020, the value increased slightly to 468 million in 2021 before declining marginally to 460 million in 2022 and 453 million in both 2023 and 2024. This stability suggests limited capital investment or asset disposals in the region during these years, or a strategic decision to maintain a consistent asset base.
- Area Asset Turnover
- The area asset turnover ratio shows the efficiency of using assets to generate sales. This ratio increased slightly from 5.2 in 2020 to 5.4 in 2021, followed by a decline to 4.75 in 2022, reflecting the reduced sales in that year relative to the asset base. Subsequently, the ratio improved to 5.05 in 2023 and 5.43 in 2024, suggesting enhanced asset utilization efficiency as sales recovered and assets remained stable.
In summary, the data indicates that the Asia Pacific operations experienced a temporary downturn in sales in 2022, which influenced asset turnover efficiency during that year. The stability in long-lived assets coupled with recovering sales led to improvements in asset utilization ratios by the end of the period, pointing to enhancing operational effectiveness within the region.
Net sales
Eaton Corp. plc, net sales by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Canada | |||||
| Latin America | |||||
| Europe | |||||
| Asia Pacific | |||||
| Total |
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).
The net sales data across geographic regions over the five-year period demonstrates varied growth patterns. Overall, total net sales have shown consistent growth each year, increasing from $17,858 million in 2020 to $24,878 million in 2024, indicating a steady expansion in the company’s revenue base.
- United States
- Sales in the United States have shown robust and continuous growth throughout the period. Starting at $10,044 million in 2020, sales increased each year, reaching $15,151 million in 2024. This steady upward trend highlights the United States as the largest and fastest-growing single market, with a total increase of over 50% from 2020 to 2024.
- Canada
- Canadian sales have shown moderate growth with some fluctuations. Sales rose from $757 million in 2020 to $797 million in 2021 but dipped slightly to $754 million in 2022. Subsequently, sales increased more notably to $949 million in 2023 and $1,058 million in 2024. This pattern suggests a recovery and stronger growth momentum in recent years.
- Latin America
- Sales in Latin America exhibited a strong upward trajectory over the period. Beginning at $939 million in 2020, sales increased significantly to $1,680 million by 2024, representing an approximate 79% increase. This growth is relatively steady, with particularly notable gains between 2021 and 2022.
- Europe
- European sales showed a more volatile pattern, starting at $3,818 million in 2020 and increasing to $4,276 million in 2021. However, a decline occurred in 2022 with sales dropping to $3,957 million. Growth resumed in 2023 and 2024, with sales reaching $4,530 million in the final year. This volatility may indicate regional challenges or market fluctuations within Europe.
- Asia Pacific
- Sales in the Asia Pacific region displayed a mixed trend. Beginning at $2,300 million in 2020, sales increased modestly in 2021 to $2,527 million but then decreased to $2,185 million in 2022. A gradual recovery followed, with sales rising to $2,288 million in 2023 and $2,459 million in 2024. Despite the initial decline, the overall trend indicates a modest recovery but no return to the earlier peak within the observed timeframe.
In summary, the data reveals strong and consistent growth in the United States and Latin America, moderate growth with some recent acceleration in Canada, and more variability in Europe and Asia Pacific regions. The total sales growth is primarily driven by the significant contribution from the United States, with Latin America also emerging as a notable growth market. The fluctuations in Europe and Asia Pacific suggest potential regional challenges that could warrant further investigation.
Long-lived assets
Eaton Corp. plc, long-lived assets by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Canada | |||||
| Latin America | |||||
| Europe | |||||
| Asia Pacific | |||||
| Total |
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).
- United States
- The long-lived assets in the United States show a consistent upward trend from 2020 to 2024. Starting at $1,510 million in 2020, the value increased in most years, reaching $1,990 million by the end of 2024. Notably, there was a slight decrease in 2022 compared to 2021, but the subsequent years showed a strong recovery and growth.
- Canada
- Asset values in Canada remained stable at $25 million from 2020 through 2022, followed by a modest increase to $31 million in 2023 and stabilization at that level in 2024. This indicates minimal fluctuation and a small growth step in the latter part of the period.
- Latin America
- Latin America experienced a significant increase in long-lived assets over the period. From $249 million in 2020, the value rose continuously, peaking at $476 million in 2023, before a slight decline to $465 million in 2024. The growth between 2020 and 2023 suggests expansion or increased investment in this region.
- Europe
- Europe's asset values display some variability with a minor decline from $738 million in 2020 to $701 million in 2021, followed by gradual recovery and growth, reaching $797 million in 2023. There was a marginal decline in 2024 to $790 million. Overall, the trend is relatively stable with minor fluctuations.
- Asia Pacific
- Asia Pacific long-lived assets increased from $442 million in 2020 to $468 million in 2021, then slightly declined and stabilized in the range of $453 million during 2023 and 2024. This suggests initial growth followed by a plateau in asset valuation in the latter years.
- Total
- The total long-lived assets aggregated across all regions show a consistent upward trajectory throughout the period. The total increases from $2,964 million in 2020 to $3,729 million in 2024, indicating an overall expansion of asset base despite minor regional fluctuations.