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: 2026-06-30), 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 liquidity profile exhibits a distinct cyclical pattern characterized by a period of strengthening from late 2022 through mid-2024, followed by a gradual contraction in liquidity buffers extending through mid-2026.
- Current Ratio Trends
- An upward trajectory is observed starting in September 2022, as the ratio rose from 1.28 to a peak of 1.56 by March 2024. This movement indicates an increased capacity to cover short-term obligations. A subsequent downward trend emerged throughout 2025, with the ratio descending to a low of 1.19 by March 2026 before recovering slightly to 1.24 in June 2026.
- Quick Ratio Trends
- The quick ratio mirrors the movement of the current ratio, climbing from 0.51 in early 2022 to a peak of 0.94 in June 2024. A steady decline followed, ending at 0.62 in June 2026. The persistent and significant gap between the current ratio and the quick ratio indicates that a substantial portion of current assets is tied up in inventory.
- Cash Ratio Trends
- A pronounced fluctuation is evident in the cash ratio. After remaining stable between 0.06 and 0.09 during 2022, the ratio experienced a sharp increase, peaking at 0.34 between December 2023 and June 2024. This suggests a temporary surge in highly liquid assets. Following this peak, a rapid decline occurred, with the ratio returning to a baseline of 0.06 by June 2025 and remaining stagnant through June 2026.
The synchronization of peaks across all three liquidity metrics in mid-2024 suggests a period of maximized short-term financial flexibility. The subsequent decline across all indicators denotes a reduction in liquid reserves; however, the current ratio remains above 1.0 throughout the latter half of the period, indicating that the ability to meet short-term liabilities is maintained despite the reduction in cash and quick assets.
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Current Ratio
Eaton Corp. plc, current ratio calculation (quarterly data)
| 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 | 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 | 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 | 1.24 | 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. | 1.14 | 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 | 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. | 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. | 1.19 | 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. | 1.01 | 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: 2026-06-30), 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 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 14,772 ÷ 11,909 = 1.24
2 Click competitor name to see calculations.
An analysis of the liquidity position reveals a period of strategic improvement followed by a phase of stabilization. The current ratio transitioned from a state of slight deficiency in early 2022 to a more robust liquidity posture throughout 2023 and 2024, before experiencing a moderate normalization in 2025 and 2026.
- Current Ratio Evolution
- The current ratio began the observed period below the 1.0 threshold, recording 0.99 on March 31, 2022, and 0.97 on June 30, 2022. A significant inflection point occurred in the second half of 2022, with the ratio rising to 1.28 by September 30, 2022. This upward trend peaked at 1.56 between March and June 2024, indicating a substantial increase in the capacity to cover short-term obligations. A gradual decline followed, with the ratio softening to 1.19 by March 31, 2026, before settling at 1.24 by June 30, 2026.
- Current Asset Growth
- Current assets exhibited a consistent long-term expansion, growing from 8,194 million US$ in March 2022 to 14,772 million US$ by June 2026. While the growth was generally linear, a period of volatility was noted between June 2024 and December 2024, where assets dipped from 12,652 million US$ to 11,801 million US$. However, a strong recovery was observed in 2026, with assets reaching their highest levels in the reported timeframe.
- Current Liability Dynamics
- Short-term obligations underwent significant fluctuations. After starting at 8,256 million US$ in March 2022, liabilities were reduced substantially to a low of 6,087 million US$ by March 31, 2023. This reduction in liabilities was a primary driver for the peak in the current ratio. Subsequently, liabilities entered a growth phase, increasing steadily through 2024 and spiking to 11,741 million US$ by March 31, 2026, which accounts for the subsequent compression of the current ratio toward the end of the period.
Overall, the liquidity profile shifted from a precarious position in early 2022 to a stable surplus. The convergence of increasing current assets and rising current liabilities in 2026 suggests a scaling of operations that maintains a healthy, albeit lower, liquidity margin compared to the 2023-2024 peak.
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Quick Ratio
Eaton Corp. plc, quick ratio calculation (quarterly data)
| 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 | 483) | 565) | 622) | 328) | 398) | 1,777) | 555) | 473) | 540) | 473) | 488) | 348) | 353) | 235) | 294) | 231) | 364) | 237) | ||||||
| Short-term investments | 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 | 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 | 7,368) | 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 | 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 | 0.62 | 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. | 0.30 | 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 | 0.67 | 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 | 0.93 | 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. | 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. | 0.65 | 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: 2026-06-30), 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 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,368 ÷ 11,909 = 0.62
2 Click competitor name to see calculations.
Analysis of the liquidity position reveals a cyclical trend in the quick ratio, characterized by a sustained period of improvement followed by a recent contraction in liquidity margins.
- Quick Ratio Trajectory
- The quick ratio exhibited a consistent upward trend from March 2022 (0.51) through June 2024, reaching a peak of 0.94. This growth indicates a strengthening of the capacity to meet immediate obligations without relying on inventory sales. However, a reversal occurred starting in September 2024, with the ratio declining steadily to 0.62 by June 2026.
- Quick Asset Dynamics
- Total quick assets experienced significant expansion, rising from US$ 4,172 million in March 2022 to a peak of US$ 7,642 million in June 2024. Although these assets remained higher than the 2022 baseline, they showed increased volatility between 2025 and 2026, fluctuating between approximately US$ 6,070 million and US$ 7,368 million.
- Current Liability Expansion
- Current liabilities followed a non-linear path. After an initial decline from US$ 8,256 million in March 2022 to a low of US$ 6,087 million in March 2023, obligations entered a phase of aggressive growth. This expansion accelerated sharply during 2025 and 2026, culminating in a peak of US$ 11,909 million by June 2026.
- Liquidity Correlation and Insight
- The deterioration of the quick ratio in the latter portion of the period is primarily attributable to the growth rate of current liabilities outpacing the accumulation of quick assets. Specifically, the substantial increase in short-term obligations from December 2024 onward effectively compressed the liquidity cushion, resulting in the ratio falling from 0.85 to 0.62.
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Cash Ratio
Eaton Corp. plc, cash ratio calculation (quarterly data)
| 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 | 483) | 565) | 622) | 328) | 398) | 1,777) | 555) | 473) | 540) | 473) | 488) | 348) | 353) | 235) | 294) | 231) | 364) | 237) | ||||||
| Short-term investments | 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 | 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 | 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 | 0.09 | 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 | 0.20 | 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 | 0.23 | 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. | 0.40 | 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. | 0.16 | 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. | 0.13 | 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: 2026-06-30), 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 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 695 ÷ 11,909 = 0.06
2 Click competitor name to see calculations.
The cash ratio exhibits a distinct cyclical pattern over the analyzed period, characterized by a significant period of liquidity accumulation followed by a sharp contraction and a subsequent stabilization at lower levels.
- Liquidity Expansion Phase (March 2022 – June 2024)
- A steady upward trajectory in the cash ratio is observed starting from 0.06 in March 2022, peaking at 0.34 in December 2023 and June 2024. This improvement was primarily driven by a substantial increase in total cash assets, which grew from 505 million USD to a peak of 2,781 million USD. During this interval, current liabilities remained relatively stable, fluctuating between 6,087 million USD and 8,120 million USD, thereby allowing the increase in cash reserves to disproportionately enhance the liquidity ratio.
- Liquidity Contraction Phase (September 2024 – June 2025)
- A rapid decline in liquidity is evident starting in late 2024. The cash ratio fell from 0.34 in June 2024 to 0.06 by June 2025. This downturn is attributed to a twofold pressure: a precipitous drop in total cash assets, which fell from 2,781 million USD to 584 million USD, and a simultaneous increase in current liabilities, which climbed to 9,594 million USD. This shift indicates a significant deployment of cash reserves or a change in capital allocation strategy.
- Stabilization and Liability Growth (September 2025 – June 2026)
- In the final period of analysis, the cash ratio remained stagnant at a low baseline of 0.06 to 0.09. While cash assets fluctuated minimally between 565 million USD and 803 million USD, current liabilities experienced a sharp increase, rising from 9,370 million USD in December 2025 to 11,909 million USD by June 2026. The divergence between stagnant cash levels and escalating short-term obligations resulted in the maintenance of a suppressed cash ratio.
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