Analysis of Geographic Areas
Eaton Corp. plc operates in 5 regions: United States; Canada; Latin America; Europe; and Asia Pacific.
Area Asset Turnover
Eaton Corp. plc, asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 7.30 | 7.61 | 7.94 | 7.88 | 6.82 |
| Canada | 25.79 | 34.13 | 30.61 | 30.16 | 31.88 |
| Latin America | 2.79 | 3.61 | 3.25 | 3.93 | 4.19 |
| Europe | 5.43 | 5.73 | 5.44 | 5.57 | 6.10 |
| Asia Pacific | 5.73 | 5.43 | 5.05 | 4.75 | 5.40 |
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).
An examination of area asset turnover reveals varying performance across geographic regions between 2021 and 2025. The United States demonstrates a generally stable, though slightly declining, trend. Canada exhibits high turnover rates with considerable fluctuation. Latin America shows a consistent downward trend, while Europe displays relative stability with minor variations. Asia Pacific presents an improving trend over the period.
- United States
- Asset turnover in the United States increased from 6.82 in 2021 to 7.88 in 2022, before stabilizing around 7.94 in 2023. A slight decrease to 7.61 is observed in 2024, followed by a further decline to 7.30 in 2025. This suggests a moderate, but consistent, reduction in efficiency in asset utilization within this region over the latter part of the analyzed period.
- Canada
- Canada consistently reports the highest asset turnover ratios among the regions analyzed. The ratio began at 31.88 in 2021, decreased to 30.16 in 2022, and then increased to 34.13 in 2024. A significant decrease to 25.79 is noted in 2025. This substantial volatility suggests potential operational or accounting factors unique to the Canadian operations that significantly impact asset utilization.
- Latin America
- Latin America exhibits a clear downward trend in asset turnover. Starting at 4.19 in 2021, the ratio declined to 3.25 in 2023 and further to 2.79 in 2025. This consistent decrease indicates a diminishing ability to generate sales from its asset base within this region, potentially signaling operational challenges or macroeconomic headwinds.
- Europe
- Europe demonstrates a relatively stable asset turnover ratio. The ratio decreased from 6.10 in 2021 to 5.57 in 2022, remained relatively flat through 2023 at 5.44, increased slightly to 5.73 in 2024, and then decreased to 5.43 in 2025. This suggests consistent, though modest, asset utilization efficiency.
- Asia Pacific
- Asia Pacific shows an improving trend in asset turnover. The ratio began at 5.40 in 2021, decreased to 4.75 in 2022, and then increased to 5.73 in 2025. This indicates a growing efficiency in generating sales from its asset base within this region.
Overall, the regional performance varies considerably. While the United States and Europe demonstrate relative stability, Canada experiences high but volatile turnover, and Latin America shows a concerning decline. Asia Pacific presents a positive trend, suggesting improving asset utilization.
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Area Asset Turnover: United States
Eaton Corp. plc; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 17,122) | 15,151) | 14,071) | 12,352) | 10,868) |
| Long-lived assets | 2,344) | 1,990) | 1,773) | 1,567) | 1,593) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 7.30 | 7.61 | 7.94 | 7.88 | 6.82 |
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 17,122 ÷ 2,344 = 7.30
Analysis of the United States geographic area reveals a generally positive trend in net sales alongside increasing long-lived assets between 2021 and 2025. However, the area asset turnover ratio, while remaining relatively stable, demonstrates a slight downward trajectory over the same period.
- Net Sales
- Net sales in the United States exhibited consistent growth throughout the analyzed period, increasing from US$10,868 million in 2021 to US$17,122 million in 2025. This represents a substantial overall increase, indicating expanding market presence or increased demand within the region.
- Long-Lived Assets
- Long-lived assets also increased steadily, rising from US$1,593 million in 2021 to US$2,344 million in 2025. This growth in assets suggests investment in property, plant, and equipment to support the increasing sales volume, or potentially strategic acquisitions.
- Area Asset Turnover
- The area asset turnover ratio, a measure of how efficiently assets are used to generate sales, began at 6.82 in 2021. It peaked at 7.94 in 2023 before declining to 7.30 in 2025. While the ratio remains at a healthy level, the decrease from the 2023 high suggests a slight reduction in asset utilization efficiency. This could be due to the increased investment in long-lived assets not yet fully translating into proportional sales growth, or a shift in asset composition.
The consistent growth in both net sales and long-lived assets is a positive indicator. However, the slight decline in area asset turnover warrants further investigation to determine the underlying causes and potential strategies to improve asset utilization efficiency in the United States.
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Area Asset Turnover: Canada
Eaton Corp. plc; Canada; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 1,083) | 1,058) | 949) | 754) | 797) |
| Long-lived assets | 42) | 31) | 31) | 25) | 25) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 25.79 | 34.13 | 30.61 | 30.16 | 31.88 |
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 1,083 ÷ 42 = 25.79
Analysis of the Canadian geographic area reveals fluctuating performance in asset utilization between 2021 and 2025. Net sales exhibited an initial decline followed by consistent growth, while long-lived assets generally increased over the period. The area asset turnover ratio, a key indicator of efficiency, demonstrated corresponding volatility.
- Net Sales
- Net sales in Canada decreased from US$797 million in 2021 to US$754 million in 2022, representing a decline of approximately 5.4%. Subsequently, sales experienced consistent growth, reaching US$949 million in 2023, US$1,058 million in 2024, and US$1,083 million in 2025. This indicates a recovery and expansion of sales within the Canadian market following the initial downturn.
- Long-Lived Assets
- Long-lived assets remained relatively stable at US$25 million in both 2021 and 2022. An increase was observed in 2023, rising to US$31 million, and remained at that level in 2024. Further growth occurred in 2025, with long-lived assets reaching US$42 million. This suggests increasing investment in fixed assets within the Canadian operations.
- Area Asset Turnover
- The area asset turnover ratio began at 31.88 in 2021, decreased to 30.16 in 2022, and then slightly increased to 30.61 in 2023. A notable increase to 34.13 was recorded in 2024, before declining significantly to 25.79 in 2025. This fluctuation suggests varying levels of efficiency in generating sales from the asset base. The decrease in 2025, despite continued sales growth, warrants further investigation as it indicates a less efficient utilization of assets compared to prior years.
The combination of increasing long-lived assets and a declining asset turnover ratio in 2025 suggests that the growth in sales may not be proportionally benefiting from the increased asset base. This could be due to a variety of factors, including the timing of asset investments relative to revenue generation, or changes in the composition of assets.
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Area Asset Turnover: Latin America
Eaton Corp. plc; Latin America; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 1,461) | 1,680) | 1,549) | 1,504) | 1,160) |
| Long-lived assets | 524) | 465) | 476) | 383) | 277) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 2.79 | 3.61 | 3.25 | 3.93 | 4.19 |
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 1,461 ÷ 524 = 2.79
Analysis of the Latin America geographic area reveals fluctuating performance in asset utilization between 2021 and 2025. Net sales exhibited initial growth followed by a decline, while long-lived assets consistently increased over the period. This dynamic is reflected in the area asset turnover ratio, which demonstrates a decreasing trend overall.
- Net Sales
- Net sales in Latin America increased from US$1,160 million in 2021 to US$1,504 million in 2022, representing a substantial gain. Further growth was observed in 2023, reaching US$1,549 million. However, sales decreased to US$1,680 million in 2024 before declining more significantly to US$1,461 million in 2025. This suggests potential challenges in maintaining sales momentum in the later years of the analyzed period.
- Long-Lived Assets
- Long-lived assets experienced a consistent upward trend throughout the five-year period. Starting at US$277 million in 2021, these assets grew to US$383 million in 2022, US$476 million in 2023, US$465 million in 2024, and finally reached US$524 million in 2025. The continuous investment in long-lived assets, despite sales fluctuations, warrants further investigation to determine the rationale and expected returns.
- Area Asset Turnover
- The area asset turnover ratio, a measure of how efficiently assets are used to generate sales, decreased from 4.19 in 2021 to 3.93 in 2022. A more pronounced decline was observed in 2023, falling to 3.25. The ratio partially recovered to 3.61 in 2024, but continued its downward trajectory, reaching 2.79 in 2025. This decreasing trend indicates a diminishing ability to generate sales from the existing asset base, potentially due to the increasing asset base outpacing sales growth or inefficiencies in asset utilization.
The combination of increasing long-lived assets and fluctuating, ultimately declining, net sales resulted in a consistent decrease in the area asset turnover ratio. This suggests a need to evaluate the effectiveness of asset allocation and utilization strategies within the Latin America area to improve operational efficiency and maximize returns on investment.
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Area Asset Turnover: Europe
Eaton Corp. plc; Europe; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 5,078) | 4,530) | 4,339) | 3,957) | 4,276) |
| Long-lived assets | 935) | 790) | 797) | 711) | 701) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 5.43 | 5.73 | 5.44 | 5.57 | 6.10 |
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 5,078 ÷ 935 = 5.43
Analysis of the European area reveals a fluctuating performance in asset utilization between 2021 and 2025. Net sales experienced initial decline followed by consistent growth, while long-lived assets generally increased over the period. The area asset turnover ratio, a key indicator of efficiency, demonstrates a corresponding pattern of variability.
- Net Sales
- Net sales in Europe decreased from US$4,276 million in 2021 to US$3,957 million in 2022, representing a decline of approximately 7.7%. Subsequently, sales exhibited a positive trend, increasing to US$4,339 million in 2023, US$4,530 million in 2024, and reaching US$5,078 million in 2025. This indicates a recovery and subsequent growth in sales within the European market.
- Long-Lived Assets
- Long-lived assets in the European area showed a modest increase from US$701 million in 2021 to US$711 million in 2022. A more substantial increase was observed in 2023, reaching US$797 million, followed by a slight decrease to US$790 million in 2024. The trend continued upward in 2025, with long-lived assets totaling US$935 million. This suggests ongoing investment in assets within the region.
- Area Asset Turnover
- The area asset turnover ratio began at 6.10 in 2021, indicating a relatively efficient use of assets to generate sales. The ratio decreased to 5.57 in 2022, coinciding with the decline in net sales. It remained relatively stable at 5.44 in 2023 before increasing to 5.73 in 2024. The ratio then decreased slightly to 5.43 in 2025. While fluctuations are present, the ratio generally remained above 5.0, suggesting continued, though variable, asset utilization efficiency. The 2024 increase suggests improved efficiency, but the 2025 decrease warrants further investigation.
Overall, the European area demonstrated resilience with sales recovering from an initial dip. The increasing asset base, coupled with the fluctuating asset turnover ratio, suggests a dynamic relationship between investment and sales generation. Continued monitoring of these trends is recommended to assess the long-term efficiency and profitability of operations within the European market.
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Area Asset Turnover: Asia Pacific
Eaton Corp. plc; Asia Pacific; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 2,704) | 2,459) | 2,288) | 2,185) | 2,527) |
| Long-lived assets | 472) | 453) | 453) | 460) | 468) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 5.73 | 5.43 | 5.05 | 4.75 | 5.40 |
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 2,704 ÷ 472 = 5.73
Analysis of the Asia Pacific region reveals a generally positive trend in asset utilization, alongside fluctuating sales figures. Net sales experienced a decrease from 2021 to 2022, followed by increases in subsequent years, culminating in the highest reported value in 2025. Long-lived assets remained relatively stable throughout the period, with a slight increase observed in the most recent year. The area asset turnover ratio demonstrates an improving trend over the five-year period, indicating increasing efficiency in generating sales from the region’s asset base.
- Net Sales
- Net sales in the Asia Pacific region decreased from US$2,527 million in 2021 to US$2,185 million in 2022, representing a decline of approximately 13.5%. Sales then exhibited a recovery, increasing to US$2,288 million in 2023, US$2,459 million in 2024, and reaching US$2,704 million in 2025. This represents an overall increase of approximately 7.0% from 2021 to 2025.
- Long-Lived Assets
- Long-lived assets in the Asia Pacific region remained relatively consistent between 2021 and 2024, fluctuating between US$453 million and US$468 million. A modest increase to US$472 million was observed in 2025, suggesting a slight expansion of the asset base in the region during that year.
- Area Asset Turnover
- The area asset turnover ratio decreased from 5.40 in 2021 to 4.75 in 2022, coinciding with the decline in net sales. The ratio then improved to 5.05 in 2023, 5.43 in 2024, and further to 5.73 in 2025. This upward trend suggests that the region is becoming more efficient at converting its investments in long-lived assets into sales revenue. The 2025 ratio represents the highest value observed during the analyzed period.
The consistent asset base coupled with increasing sales from 2022 onwards is the primary driver of the improved asset turnover. This suggests effective management of assets and a strengthening market position within the Asia Pacific region.
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Net sales
Eaton Corp. plc, net sales by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 17,122) | 15,151) | 14,071) | 12,352) | 10,868) |
| Canada | 1,083) | 1,058) | 949) | 754) | 797) |
| Latin America | 1,461) | 1,680) | 1,549) | 1,504) | 1,160) |
| Europe | 5,078) | 4,530) | 4,339) | 3,957) | 4,276) |
| Asia Pacific | 2,704) | 2,459) | 2,288) | 2,185) | 2,527) |
| Total | 27,448) | 24,878) | 23,196) | 20,752) | 19,628) |
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).
Net sales exhibited varied performance across geographic regions between 2021 and 2025. Overall, a general upward trend in total net sales is apparent, though the rate of growth differs significantly by region.
- United States
- The United States consistently represents the largest portion of net sales. A strong and steady increase is observed, growing from US$10,868 million in 2021 to US$17,122 million in 2025. This represents a substantial overall increase and suggests a robust domestic market performance.
- Canada
- Net sales in Canada experienced a slight initial decline from 2021 to 2022, decreasing from US$797 million to US$754 million. However, sales recovered and demonstrated consistent growth through 2025, reaching US$1,083 million. While smaller in scale than other regions, Canada shows a positive trajectory.
- Latin America
- Latin America showed initial growth from 2021 to 2023, increasing from US$1,160 million to US$1,549 million. Growth continued into 2024, reaching US$1,680 million, but experienced a decrease in 2025, falling to US$1,461 million. This region exhibits more volatility than others.
- Europe
- Europe experienced a slight decrease in net sales from 2021 to 2022, declining from US$4,276 million to US$3,957 million. Sales then recovered and continued to grow through 2025, reaching US$5,078 million. The growth in Europe appears to accelerate in the later years of the period.
- Asia Pacific
- Asia Pacific demonstrated a fluctuating pattern. Sales decreased from 2021 to 2022, from US$2,527 million to US$2,185 million. While there was a slight recovery in subsequent years, growth remained modest, reaching US$2,704 million in 2025. This region’s growth is the slowest among the reported areas.
The overall trend indicates increasing net sales, driven primarily by growth in the United States and, to a lesser extent, Europe. While Canada shows positive growth, Latin America and Asia Pacific exhibit more variable performance. The United States’ contribution to total net sales continues to be dominant and is a key driver of overall company performance.
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Long-lived assets
Eaton Corp. plc, long-lived assets by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 2,344) | 1,990) | 1,773) | 1,567) | 1,593) |
| Canada | 42) | 31) | 31) | 25) | 25) |
| Latin America | 524) | 465) | 476) | 383) | 277) |
| Europe | 935) | 790) | 797) | 711) | 701) |
| Asia Pacific | 472) | 453) | 453) | 460) | 468) |
| Total | 4,317) | 3,729) | 3,530) | 3,146) | 3,064) |
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).
The value of long-lived assets demonstrates varied trends across geographic regions between 2021 and 2025. Overall, total long-lived assets increased consistently throughout the period. However, the rate of increase differs significantly by region.
- United States
- Long-lived assets in the United States experienced a slight decrease from 2021 to 2022, followed by a consistent upward trend through 2025. The value increased from US$1,593 million in 2021 to US$2,344 million in 2025, representing a substantial overall increase. This region consistently holds the largest portion of the company’s long-lived assets.
- Canada
- Canada exhibits a modest but steady increase in long-lived asset value. Starting at US$25 million in both 2021 and 2022, the value rose to US$42 million by 2025. While the absolute increase is smaller than other regions, the consistent growth is noteworthy.
- Latin America
- Latin America shows a significant increase in long-lived asset value between 2021 and 2023, growing from US$277 million to US$476 million. The rate of growth slowed between 2023 and 2024, with a slight decrease to US$465 million, before resuming growth to US$524 million in 2025. This region demonstrates considerable volatility in asset investment.
- Europe
- Europe experienced a relatively stable period between 2021 and 2024, with values fluctuating around US$700-797 million. A more pronounced increase is observed in 2025, reaching US$935 million. This suggests a potential acceleration of investment in long-lived assets in this region towards the end of the analyzed period.
- Asia Pacific
- Asia Pacific demonstrates the most stable pattern, with values remaining relatively consistent between 2021 and 2025, fluctuating between US$453 million and US$472 million. This indicates a consistent level of investment in long-lived assets in this region, without significant expansion or contraction.
In summary, the United States, Europe, and Latin America demonstrate the most significant changes in long-lived asset values. The United States shows consistent growth, Europe shows late-period acceleration, and Latin America exhibits initial rapid growth followed by stabilization. Canada shows steady, albeit smaller, growth, while Asia Pacific remains largely stable.
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