Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Eaton Corp. plc, liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
The analysis of liquidity metrics reveals a distinct cyclical pattern characterized by a period of significant strengthening between late 2022 and mid-2024, followed by a gradual contraction through September 2026.
- Current Ratio Trends
- The current ratio initially trended below parity in early 2022, reaching a low of 0.97 in June 2022. A sharp improvement occurred in the second half of 2022, with the ratio ascending to 1.38 by December 31, 2022. Liquidity peaked between March 2023 and June 2024, maintaining a range between 1.45 and 1.56. From mid-2024 onward, a steady decline is observed, with the ratio receding to 1.23 by September 30, 2026, indicating a reduction in the margin of current assets over current liabilities.
- Quick Ratio Dynamics
- The quick ratio mirrors the trajectory of the current ratio but operates at a lower threshold, reflecting the impact of inventory on total current assets. Starting at 0.51 in March 2022, the ratio improved steadily to a peak of 0.94 in June 2024. Subsequent to this peak, a downward trend is evident, falling to 0.61 by September 2026. The consistent gap between the current and quick ratios suggests that a substantial portion of the entity's liquidity is tied up in inventory.
- Cash Ratio Volatility
- The cash ratio demonstrates the most significant volatility among the three metrics. After remaining relatively stagnant between 0.06 and 0.09 from March 2022 to March 2023, a rapid increase was observed, peaking at 0.34 in December 2023 and June 2024. This suggests a temporary accumulation of cash or cash equivalents. However, this position reversed sharply starting in September 2024, returning to a baseline of 0.06 by June 2025 and remaining at that level through September 2026.
Overall, the data indicates a period of aggressive liquidity buildup that peaked in the first half of 2024, followed by a strategic or operational reduction in liquid asset holdings. While the current ratio remains above 1.0, suggesting a continued ability to meet short-term obligations, the decline in the cash and quick ratios points toward a leaner liquidity profile in the final periods of the analysis.
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Current Ratio
Eaton Corp. plc, current ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current assets | 16,031) | 14,772) | 14,005) | 12,355) | 12,131) | 11,897) | 12,434) | 11,801) | 12,152) | 12,652) | 11,853) | 11,675) | 10,983) | 10,303) | 9,138) | 8,746) | 8,540) | 8,687) | 8,194) | ||||||
| Current liabilities | 12,991) | 11,909) | 11,741) | 9,370) | 9,474) | 9,594) | 9,522) | 7,857) | 7,941) | 8,120) | 7,613) | 7,747) | 7,563) | 6,725) | 6,087) | 6,360) | 6,653) | 8,974) | 8,256) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | 1.23 | 1.24 | 1.19 | 1.32 | 1.28 | 1.24 | 1.31 | 1.50 | 1.53 | 1.56 | 1.56 | 1.51 | 1.45 | 1.53 | 1.50 | 1.38 | 1.28 | 0.97 | 0.99 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 1.13 | 1.14 | 1.18 | 1.19 | 1.18 | 1.23 | 1.23 | 1.32 | 1.12 | 1.18 | 1.14 | 1.14 | 1.15 | 1.17 | 1.16 | 1.22 | 1.22 | 1.25 | 1.30 | ||||||
| Caterpillar Inc. | — | 1.37 | 1.35 | 1.44 | 1.38 | 1.34 | 1.32 | 1.42 | 1.40 | 1.28 | 1.35 | 1.35 | 1.45 | 1.33 | 1.43 | 1.39 | 1.41 | 1.45 | 1.44 | ||||||
| GE Aerospace | 0.98 | 0.98 | 1.01 | 1.04 | 1.08 | 1.04 | 1.08 | 1.09 | 1.13 | 1.14 | 1.17 | 1.18 | 1.17 | 1.25 | 1.25 | 1.16 | 1.10 | 1.13 | 1.19 | ||||||
| Honeywell International Inc. | 0.96 | 1.21 | 1.39 | 1.30 | 1.36 | 1.29 | 1.25 | 1.31 | 1.44 | 1.21 | 1.66 | 1.27 | 1.35 | 1.41 | 1.26 | 1.25 | 1.24 | 1.20 | 1.21 | ||||||
| Lockheed Martin Corp. | 1.26 | 1.19 | 1.14 | 1.09 | 1.13 | 0.98 | 1.08 | 1.13 | 1.30 | 1.24 | 1.30 | 1.21 | 1.36 | 1.36 | 1.30 | 1.32 | 1.28 | 1.27 | 1.27 | ||||||
| RTX Corp. | 1.05 | 1.01 | 1.02 | 1.03 | 1.07 | 1.01 | 1.01 | 0.99 | 0.99 | 0.99 | 1.07 | 1.04 | 1.03 | 1.10 | 1.13 | 1.09 | 1.09 | 1.10 | 1.16 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q3 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 16,031 ÷ 12,991 = 1.23
2 Click competitor name to see calculations.
The liquidity position of the company underwent three distinct phases between March 2022 and September 2026, characterized by an initial period of tight liquidity, a subsequent phase of strength, and a final stage of moderation.
- Current Ratio Progression
- The current ratio began below the 1.0 threshold, reaching a low of 0.97 in June 2022, indicating that current liabilities exceeded current assets. A sharp improvement occurred in the second half of 2022, with the ratio climbing to 1.28 by September 2022. The ratio reached a peak of 1.56 in the first half of 2024 before trending downward to stabilize between 1.23 and 1.24 by the end of the analyzed period.
- Current Asset Dynamics
- Current assets exhibited a consistent long-term growth trend, increasing from 8,194 million USD in March 2022 to 16,031 million USD by September 2026. This represents a substantial expansion of the short-term resource base over the four-year period, with particularly strong growth observed in the first quarter of 2026.
- Current Liability Trends
- Current liabilities showed significant volatility. An initial decrease from 8,256 million USD in March 2022 to a low of 6,087 million USD in March 2023 contributed to the initial improvement in the liquidity ratio. However, liabilities increased markedly thereafter, with notable surges between December 2024 and March 2025, and again in March 2026, where liabilities rose to 11,741 million USD.
- Liquidity Correlation Analysis
- The fluctuations in the current ratio are primarily attributable to the divergent trajectories of assets and liabilities. The period of peak liquidity in 2023 and early 2024 was driven by asset growth outpacing liability growth. Conversely, the decline in the ratio from March 2024 through September 2026 is linked to a more aggressive increase in short-term obligations relative to the growth in current assets, particularly during the 2025 and 2026 fiscal periods.
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Quick Ratio
Eaton Corp. plc, quick ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash | 528) | 483) | 565) | 622) | 328) | 398) | 1,777) | 555) | 473) | 540) | 473) | 488) | 348) | 353) | 235) | 294) | 231) | 364) | 237) | ||||||
| Short-term investments | 290) | 212) | 186) | 181) | 237) | 186) | 162) | 1,525) | 1,521) | 2,241) | 1,969) | 2,121) | 1,558) | 977) | 289) | 261) | 287) | 259) | 268) | ||||||
| Accounts receivable, net | 7,150) | 6,673) | 6,366) | 5,387) | 5,556) | 5,486) | 5,094) | 4,619) | 4,886) | 4,861) | 4,674) | 4,475) | 4,460) | 4,399) | 4,239) | 4,076) | 3,816) | 3,837) | 3,667) | ||||||
| Total quick assets | 7,968) | 7,368) | 7,117) | 6,190) | 6,121) | 6,070) | 7,033) | 6,699) | 6,880) | 7,642) | 7,116) | 7,084) | 6,366) | 5,729) | 4,763) | 4,631) | 4,334) | 4,460) | 4,172) | ||||||
| Current liabilities | 12,991) | 11,909) | 11,741) | 9,370) | 9,474) | 9,594) | 9,522) | 7,857) | 7,941) | 8,120) | 7,613) | 7,747) | 7,563) | 6,725) | 6,087) | 6,360) | 6,653) | 8,974) | 8,256) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | 0.61 | 0.62 | 0.61 | 0.66 | 0.65 | 0.63 | 0.74 | 0.85 | 0.87 | 0.94 | 0.93 | 0.91 | 0.84 | 0.85 | 0.78 | 0.73 | 0.65 | 0.50 | 0.51 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.31 | 0.30 | 0.32 | 0.38 | 0.34 | 0.34 | 0.35 | 0.39 | 0.24 | 0.26 | 0.22 | 0.28 | 0.28 | 0.28 | 0.29 | 0.32 | 0.29 | 0.28 | 0.29 | ||||||
| Caterpillar Inc. | — | 0.77 | 0.72 | 0.86 | 0.78 | 0.72 | 0.69 | 0.80 | 0.76 | 0.69 | 0.73 | 0.74 | 0.76 | 0.74 | 0.79 | 0.79 | 0.78 | 0.81 | 0.84 | ||||||
| GE Aerospace | 0.62 | 0.62 | 0.67 | 0.71 | 0.73 | 0.70 | 0.74 | 0.78 | 0.81 | 0.81 | 0.76 | 0.78 | 0.76 | 0.84 | 0.86 | 0.81 | 0.73 | 0.75 | 0.82 | ||||||
| Honeywell International Inc. | 0.76 | 0.76 | 0.93 | 0.88 | 0.98 | 0.90 | 0.83 | 0.88 | 0.96 | 0.83 | 1.18 | 0.84 | 0.92 | 0.98 | 0.84 | 0.88 | 0.85 | 0.82 | 0.84 | ||||||
| Lockheed Martin Corp. | 1.06 | 0.97 | 0.91 | 0.90 | 0.93 | 0.80 | 0.87 | 0.92 | 1.10 | 1.05 | 1.08 | 0.99 | 1.14 | 1.14 | 1.07 | 1.09 | 1.06 | 1.03 | 1.03 | ||||||
| RTX Corp. | 0.67 | 0.65 | 0.65 | 0.67 | 0.67 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.64 | 0.63 | 0.63 | 0.68 | 0.71 | 0.69 | 0.70 | 0.71 | 0.76 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q3 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,968 ÷ 12,991 = 0.61
2 Click competitor name to see calculations.
The analysis of the liquidity position reveals a cyclical trend in the quick ratio, characterized by a period of steady improvement followed by a contraction and subsequent stabilization. Between March 2022 and June 2024, the quick ratio experienced a consistent upward trajectory, rising from 0.51 to a peak of 0.94. This improvement was primarily driven by a significant expansion in total quick assets, which grew from 4,172 million US dollars to 7,642 million US dollars over the same period.
- Liquidity Expansion Phase (March 2022 – June 2024)
- A sustained increase in liquidity is observed, with the quick ratio nearly doubling from its initial 0.51 level. This phase was marked by a strong growth in quick assets and a period where current liabilities remained relatively controlled, dipping as low as 6,087 million US dollars in March 2023, which accelerated the ratio's ascent.
- Liquidity Contraction Phase (September 2024 – June 2025)
- A reversal in the trend occurs starting in the third quarter of 2024. The quick ratio declined from 0.94 in June 2024 to 0.63 by June 2025. This compression was caused by a simultaneous decrease in quick assets, which fell to 6,070 million US dollars, and a sharp increase in current liabilities, which rose from 8,120 million US dollars in June 2024 to 9,594 million US dollars in June 2025.
- Stabilization and Liability Growth (June 2025 – September 2026)
- In the final period, the quick ratio stabilized within a narrow range between 0.61 and 0.66. While total quick assets recovered to a peak of 7,968 million US dollars by September 2026, this growth was offset by a substantial surge in current liabilities, which climbed to 12,991 million US dollars. The divergence between asset growth and liability growth resulted in a flat liquidity profile despite the increase in absolute asset values.
Overall, the data indicates that while the organization significantly strengthened its immediate liquidity position through mid-2024, subsequent increases in short-term obligations have placed downward pressure on the quick ratio, returning it to levels more aligned with the 2022-2023 baseline.
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Cash Ratio
Eaton Corp. plc, cash ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash | 528) | 483) | 565) | 622) | 328) | 398) | 1,777) | 555) | 473) | 540) | 473) | 488) | 348) | 353) | 235) | 294) | 231) | 364) | 237) | ||||||
| Short-term investments | 290) | 212) | 186) | 181) | 237) | 186) | 162) | 1,525) | 1,521) | 2,241) | 1,969) | 2,121) | 1,558) | 977) | 289) | 261) | 287) | 259) | 268) | ||||||
| Total cash assets | 818) | 695) | 751) | 803) | 565) | 584) | 1,939) | 2,080) | 1,994) | 2,781) | 2,442) | 2,609) | 1,906) | 1,330) | 524) | 555) | 518) | 623) | 505) | ||||||
| Current liabilities | 12,991) | 11,909) | 11,741) | 9,370) | 9,474) | 9,594) | 9,522) | 7,857) | 7,941) | 8,120) | 7,613) | 7,747) | 7,563) | 6,725) | 6,087) | 6,360) | 6,653) | 8,974) | 8,256) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | 0.06 | 0.06 | 0.06 | 0.09 | 0.06 | 0.06 | 0.20 | 0.26 | 0.25 | 0.34 | 0.32 | 0.34 | 0.25 | 0.20 | 0.09 | 0.09 | 0.08 | 0.07 | 0.06 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.18 | 0.18 | 0.20 | 0.27 | 0.22 | 0.22 | 0.23 | 0.27 | 0.11 | 0.13 | 0.08 | 0.17 | 0.14 | 0.15 | 0.16 | 0.19 | 0.16 | 0.14 | 0.15 | ||||||
| Caterpillar Inc. | — | 0.17 | 0.11 | 0.27 | 0.21 | 0.16 | 0.11 | 0.21 | 0.17 | 0.13 | 0.15 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.21 | 0.21 | 0.22 | ||||||
| GE Aerospace | 0.21 | 0.23 | 0.27 | 0.32 | 0.36 | 0.33 | 0.38 | 0.42 | 0.47 | 0.47 | 0.43 | 0.45 | 0.42 | 0.49 | 0.52 | 0.44 | 0.35 | 0.37 | 0.44 | ||||||
| Honeywell International Inc. | 0.41 | 0.40 | 0.56 | 0.55 | 0.59 | 0.49 | 0.46 | 0.52 | 0.56 | 0.47 | 0.73 | 0.44 | 0.46 | 0.51 | 0.40 | 0.51 | 0.44 | 0.43 | 0.49 | ||||||
| Lockheed Martin Corp. | 0.24 | 0.16 | 0.09 | 0.18 | 0.15 | 0.05 | 0.09 | 0.13 | 0.18 | 0.14 | 0.16 | 0.09 | 0.21 | 0.21 | 0.14 | 0.16 | 0.15 | 0.11 | 0.12 | ||||||
| RTX Corp. | 0.15 | 0.13 | 0.12 | 0.13 | 0.11 | 0.09 | 0.10 | 0.11 | 0.13 | 0.12 | 0.12 | 0.14 | 0.12 | 0.13 | 0.15 | 0.16 | 0.14 | 0.13 | 0.17 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q3 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 818 ÷ 12,991 = 0.06
2 Click competitor name to see calculations.
The cash ratio exhibits a cyclical pattern characterized by a period of substantial growth followed by a sharp decline and subsequent stabilization at a low baseline.
- Liquidity Expansion Phase (2022–2024)
- Between March 2022 and June 2024, the cash ratio increased from 0.06 to a peak of 0.34. This growth was primarily driven by a significant increase in total cash assets, which rose from 505 million USD in early 2022 to 2,781 million USD by June 2024. During this period, current liabilities remained relatively stable or decreased slightly, further amplifying the ratio's ascent.
- Liquidity Contraction Phase (2024–2025)
- A reversal in the liquidity trend began in September 2024, with the cash ratio declining from 0.25 to 0.06 by June 2025. This contraction corresponds with a sharp reduction in total cash assets, which dropped from 2,080 million USD in December 2024 to 584 million USD in June 2025, occurring simultaneously with an increase in current liabilities to approximately 9.5 billion USD.
- Stabilization and Liability Growth (2025–2026)
- From June 2025 through September 2026, the cash ratio remained stagnant at 0.06, with a brief increase to 0.09 in December 2025. While cash assets remained below 1 billion USD, current liabilities experienced a steady upward trajectory, climbing from 9.5 billion USD in early 2025 to 12.99 billion USD by September 2026.
The overall trajectory indicates a shift in cash management. The period of elevated liquidity seen in 2023 and 2024 was temporary, and the subsequent rise in current liabilities coupled with lower cash reserves has returned the liquidity position to a level identical to that observed at the start of the analyzed period.
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