Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Eaton Corp. plc pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Eaton Corp. plc for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Eaton Corp. plc, long-term (investment) activity ratios (quarterly data)
Based on: 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), 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).
- Net fixed asset turnover
- The net fixed asset turnover ratio shows a positive trend starting from a base value around 6.02 and gradually increasing up to a peak near 6.8 by the end of 2022. After this peak, the ratio experiences moderate fluctuations but remains relatively stable, oscillating between 6.57 and 6.77 through 2023 and early 2024. Towards the later dates, there is a slight decline to 6.45 by mid-2025, indicating a marginal decrease in the efficiency with which fixed assets are used to generate revenue towards the end of the observed period.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- When considering operating lease and right-of-use assets, the turnover ratio starts lower than the net fixed asset turnover alone, around 5.26, and follows a gradual upward trend reaching about 5.74 by late 2023. This ratio then exhibits a general downward trend with minor variations, stabilizing around 5.5 as it approaches mid-2025. This pattern suggests the impact of including leased assets leads to a lower efficiency ratio overall, with a slight decline in asset utilization efficiency in the later periods.
- Total asset turnover
- The total asset turnover ratio commences at 0.56 during late 2020, declines slightly to 0.52 in mid-2020 quarters, and then embarks on a consistent incremental trend from 0.57 at year-end 2020 to a higher range of 0.61 to 0.65 across 2023 and into 2025. This continuous improvement signals an overall enhancement in how total assets contribute to revenue generation over time, with a particularly noteworthy stability at around 0.64 to 0.65 in the final observed quarters.
- Equity turnover
- The equity turnover ratio remains relatively steady with small fluctuations around the 1.2 mark initially. Starting from roughly 1.2, it dips slightly to 1.18 but recovers and gradually climbs over the years, reaching values as high as 1.4 by mid-2025. This progression reflects an increasing efficiency in utilizing shareholders' equity to generate revenue, with a sustained steady growth indicating strengthening operational performance and capital management efficiency.
Net Fixed Asset Turnover
Eaton Corp. plc, net fixed asset turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Net property, plant and equipment | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Net fixed asset turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Net property, plant and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly data reveals several notable trends and fluctuations across key financial metrics.
- Net Sales
- Net sales exhibited an overall upward trajectory from March 2020 through June 2025, beginning at approximately 4,789 million US dollars and reaching over 7,000 million US dollars by mid-2025. While some quarters experienced slight declines or stagnations, the general pattern shows growth, particularly pronounced from 2022 onward. Seasonal or cyclical variations appear minimal given the steady quarterly increases. The largest increases can be observed in the periods following 2022, highlighting a phase of accelerated revenue expansion.
- Net Property, Plant and Equipment
- The net property, plant, and equipment figures showed moderate growth over the period analyzed. Starting near 2,939 million US dollars in early 2020, the amount experienced some fluctuations but trended upward, reaching over 4,000 million US dollars by mid-2025. There were intervals of slight declines, especially between 2021 and 2022, but subsequent quarters show recovery and growth. This suggests ongoing capital investment with periods of asset revaluation or disposals, followed by expansions or acquisitions of fixed assets.
- Net Fixed Asset Turnover Ratio
- This ratio, which measures sales generated per unit of net fixed assets, consistently remained above 6.0 from its first recording in the third quarter of 2020. It showed a gradual increasing trend reaching peaks around 6.8 in late 2022, followed by minor fluctuations around the mid-6 range in subsequent quarters. The stability and modest growth in this ratio suggest improved efficiency in using fixed assets to generate sales, though the trend levels off toward the end of the period, indicating balanced asset utilization relative to sales volume.
In summary, the company’s financial data from 2020 to mid-2025 demonstrate sustained revenue growth coupled with strategic investments in fixed assets. Improvements in the fixed asset turnover ratio reflect effective management of asset resources to support increasing sales, while periodic adjustments in asset levels suggest responsive capital expenditure aligned with operational needs.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Eaton Corp. plc, net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Net property, plant and equipment | |||||||||||||||||||||||||||||
| Operating lease assets | |||||||||||||||||||||||||||||
| Net property, plant and equipment (including operating lease, right-of-use asset) | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales exhibited notable fluctuations over the observed periods but displayed an overall upward trajectory. Beginning at 4,789 million USD in the first quarter of 2020, sales dipped to 3,856 million USD in the following quarter, likely affected by external factors during that timeframe. Subsequent quarters showed recovery and growth, with intermittent mild declines. From 2022 onward, net sales consistently increased, culminating in 7,028 million USD by the middle of 2025, indicating strong revenue growth in more recent periods.
- Net Property, Plant, and Equipment (PPE)
- The net PPE balance showed a gradual increase over the periods. Starting at 3,373 million USD in early 2020, it remained relatively stable with minor fluctuations around mid-3000 million USD until late 2021. Beginning in 2022, the asset base expanded more significantly, reaching 4,741 million USD by mid-2025. The steady increase in net PPE suggests ongoing investments in fixed assets, including operating lease and right-of-use assets, which could support operational capacity expansion.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, available from the end of 2020 onward, ranged roughly between 5.26 and 5.74 in most quarters. This ratio peaked at 5.74 in late 2022, indicating an efficient utilization of fixed assets to generate sales during that time. However, after peaking, it demonstrated a slight declining trend, falling to 5.48 by the middle of 2025. Despite the decrease, the ratio remained above 5.4, reflecting consistent asset productivity relative to net sales throughout the period.
- Overall Insights
- The data suggests that while net sales experienced some volatility in the early 2020s, they have generally increased, especially in the recent years, pointing to growing market demand or enhanced sales performance. The consistent expansion of the net PPE base indicates the company's continued capital investment to support this growth. Although asset turnover efficiency slightly decreased in the latter part of the data series, it remained at a relatively high level, suggesting effective asset utilization. The combination of rising sales and growing asset base, alongside a stable turnover ratio, implies a balanced growth approach with consistent operational efficiency.
Total Asset Turnover
Eaton Corp. plc, total asset turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Total asset turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
-
Net sales demonstrate a fluctuating but overall increasing trend over the observed periods. Initially, there was a decline from $4,789 million in March 2020 to $3,856 million in June 2020, likely reflecting external market impacts during that period. Following this dip, sales gradually recovered and showed steady growth through the subsequent quarters.
From March 2021 onwards, net sales consistently increased with some minor variability. Notable growth periods include the jump from $5,483 million in March 2023 to $5,967 million in December 2023, and further growth reaching $7,028 million by June 2025. This reflects an expanding revenue base and possible improvement in market demand or pricing strategy.
- Total Assets
-
Total assets generally exhibit a growth trajectory over time with some short-term fluctuations. Starting at $30,845 million in March 2020, assets increased steadily, peaking at $38,432 million in December 2023. Periodic minor declines occurred, such as a slight decrease from $39,236 million in March 2025 to $38,381 million in June 2025.
The consistent increase over the long term suggests ongoing investments or asset acquisitions supporting the company’s growth. The fluctuations likely reflect normal asset revaluations or disposals occurring during the quarters.
- Total Asset Turnover
-
Total asset turnover ratios, where available, indicate improving efficiency in using assets to generate sales. Starting around 0.56 in late 2020, the ratio hovered near 0.52 to 0.59 for several quarters, then showed a gradual upward trend to reach about 0.65 by mid-2025.
This upward movement suggests that the company is generating more sales per dollar of assets over time, pointing to enhanced operational effectiveness or better asset utilization despite rising asset bases.
- Overall Analysis
-
The financial data reveals a company experiencing recovery from initial downturns around early 2020, followed by sustained growth in net sales supported by an expanding asset base. The incremental improvement in total asset turnover ratio further confirms enhanced efficiency in asset use.
The combination of increasing sales and assets alongside better asset productivity reflects positive operational trends, likely positioning the company for continued growth. Short-term fluctuations in assets and sales appear typical and do not undermine the broader positive trajectory observed over the analyzed period.
Equity Turnover
Eaton Corp. plc, equity turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Total Eaton shareholders’ equity | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
Based on: 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), 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).
1 Q2 2025 Calculation
Equity turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Total Eaton shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The data reveals several notable trends regarding the financial performance and position over the periods analyzed.
- Net Sales
- Net sales exhibit an overall upward trajectory throughout the periods. Initial fluctuations in 2020 gave way to a more consistent increase starting from early 2021. Sales rose from approximately 4,692 million USD in March 2021 to 7,028 million USD by June 2025, demonstrating continued growth. There are some minor short-term fluctuations, such as slight decreases in some quarters (e.g., a dip at December 2024 and March 2025), but these are followed by recovery and further gains.
- Total Shareholders’ Equity
- Shareholders’ equity experienced modest growth in 2020 and early 2021, increasing from about 14,245 million USD in March 2020 to 16,413 million USD by December 2021. Between 2022 and early 2023, equity saw some volatility, with values fluctuating but generally climbing to reach a peak of 19,292 million USD in June 2024. However, after this peak, equity trends slightly downward towards 18,606 million USD by June 2025, suggesting potential changes in retained earnings or capital structure.
- Equity Turnover Ratio
- The equity turnover ratio, available from the fourth quarter of 2020 onwards, shows a stable and improving pattern. Starting at 1.20 in December 2020, it progresses gradually upward with minor fluctuations, reaching 1.40 by December 2025. This indicates increased efficiency in using equity to generate sales over time. The rise from approximately 1.20 to 1.40 suggests that the company is generating more sales per unit of equity, pointing to enhanced operational effectiveness.
- Overall Observations
- The combination of rising net sales and a generally increasing equity turnover ratio suggests improving operational performance and capital utilization. However, the leveling and slight decline in total equity in the most recent periods may warrant further investigation to understand the underlying causes, such as dividend payments, share buybacks, or other equity adjustments. The steady growth in sales combined with enhanced equity utilization supports a view of strengthening financial health and business expansion.