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.
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Eaton Corp. plc pages available for free this week:
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Eaton Corp. plc, long-term (investment) activity ratios (quarterly data)
Based on: 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), 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).
The inspection of the financial ratios over the periods reveals several noteworthy trends related to asset and equity utilisation.
- Net Fixed Asset Turnover
- This ratio has exhibited a generally stable to slightly increasing trajectory from the beginning of the earliest period to the end of the latest period. Initial values around 6.08 rose slightly to peak near 6.80 during late 2022, followed by minor fluctuations with modest decreases and subsequent rebounds. Towards the most recent quarters, the ratio stabilises around the mid-6.5 range. This pattern indicates a relatively efficient use of fixed assets in generating sales, with periodic improvements but no extreme volatility.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When operating leases and right-of-use assets are included, the turnover ratio is consistently lower than the pure fixed asset turnover, starting at 5.3 and showing modest incremental changes. It peaked slightly under 5.75 in late 2023 and then experienced a mild, gradual decline to below 5.5, with some fluctuations. The overall trend suggests cautious utilisation improvements, tempered by the addition of leased assets which dilute the turnover ratio somewhat.
- Total Asset Turnover
- This ratio demonstrates a clear upward trend across the observed periods, starting at 0.52 and increasing steadily to reach approximately 0.66 by the latest quarters. The growth is consistent, indicating improving efficiency in using all assets to generate sales revenue over time. The steady rise suggests better operational execution or enhanced asset management contributing to higher sales per unit of total assets.
- Equity Turnover
- The equity turnover ratio shows a consistent growth pattern, beginning at 1.18 and culminating at 1.41 by the final recorded period. This steady increase signals enhanced utilisation of shareholders' equity in generating revenue. The trend suggests improving financial leverage or operational efficiency that positively influences returns on equity investment.
Overall, the company’s asset usage and equity efficiency ratios reflect gradual improvements with minor fluctuations. The steady rise in total asset and equity turnover ratios, combined with relatively stable net fixed asset turnover figures, portrays an operation enhancing its productivity in asset and equity utilisation over the examined quarters.
Net Fixed Asset Turnover
Eaton Corp. plc, net fixed asset turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-09-30), 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), 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).
1 Q3 2025 Calculation
Net fixed asset turnover
= (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
÷ Net property, plant and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial analysis reveals distinct trends across the periods from March 31, 2021, to September 30, 2025, focusing on net sales, net property, plant and equipment (PPE), and net fixed asset turnover ratio.
- Net Sales
- Net sales show a generally upward trajectory over the analyzed quarters. Starting from US$4,692 million in March 2021, sales increase with some fluctuations, reaching US$6,988 million by September 2025. Notably, there are steady gains particularly from 2023 onward, with intermittent modest dips, illustrating persistent revenue growth and likely market expansion or pricing power.
- Net Property, Plant and Equipment (PPE)
- The net PPE values exhibit moderate growth overall but with observable fluctuations. Beginning at US$2,922 million in March 2021, and growing to US$4,068 million by September 2025, the asset base expanded consistently, reflecting ongoing investment in fixed assets. This trend indicates capital expenditures to support operational capacity, although some periods like mid-2022 reveal temporary declines, possibly due to asset retirements or revaluations.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, reflecting efficiency in generating sales from fixed assets, remains relatively stable with a mild declining trend toward the end of the period. Starting at 6.08 in March 2021, it peaks intermittently around the 6.7–6.8 range but gently dips to approximately 6.55 by September 2025. The fluctuation suggests that while sales grew, the increase in fixed assets somewhat outpaced sales growth at certain points, impacting efficiency modestly.
In summary, the company has demonstrated sustained sales growth coupled with steady investment in fixed assets. The efficiency in utilizing these assets to generate sales has been largely consistent, with a slight reduction in turnover ratio in more recent periods. This pattern may imply a strategic expansion phase requiring capital investment, with marginal short-term trade-offs in asset utilization efficiency.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Eaton Corp. plc, net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-09-30), 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), 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).
1 Q3 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends for the given period.
- Net Sales
- Net sales showed a generally increasing trend across the periods. Starting from 4,692 million US dollars in the first quarter of 2021, sales rose steadily with some fluctuations to reach 6,988 million US dollars by the third quarter of 2025. The increase was particularly pronounced from mid-2023 onward, with sales consistently above 5,900 million and peaking over 7,000 million in the middle of 2025. This upward movement indicates growth in revenue generation over the years.
- Net Property, Plant, and Equipment
- The net value of property, plant, and equipment (including operating lease and right-of-use assets) also exhibited an increasing trajectory. Beginning at 3,351 million US dollars in early 2021, the net assets steadily increased to 4,762 million US dollars by the third quarter of 2025. This rise suggests ongoing investments in fixed assets or capital expenditures, supporting operational capability expansion during the observed period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio remained relatively stable throughout the period, fluctuating mildly around an average near 5.5x. It started at 5.3 in the first quarter of 2021, experienced some minor increases and decreases, and concluded close to 5.59 by the third quarter of 2025. Although there was no significant improvement in asset turnover efficiency, the company managed to maintain consistent utilization levels of its fixed assets relative to sales.
Overall, the data indicates a sustained growth in sales alongside gradual increases in fixed asset holdings, while maintaining a stable efficiency in asset utilization. This combination points to a growth phase with continued investment in productive capacity, sustaining the drive for higher revenue without dilution in asset efficiency.
Total Asset Turnover
Eaton Corp. plc, total asset turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-09-30), 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), 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).
1 Q3 2025 Calculation
Total asset turnover
= (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several key trends across the reported periods. Net sales exhibited an overall upward trend, with minor fluctuations. Starting from approximately 4,692 million US dollars at the beginning of the period, net sales increased steadily, reaching a peak close to 7,028 million US dollars by the end of the latest quarter. This indicates a consistent growth trajectory in the company’s revenue generation.
Total assets showed moderate growth with some variability. The asset base began at around 34,080 million US dollars and experienced fluctuations, with occasional decreases followed by recoveries. By the latest quarter, total assets increased to approximately 40,650 million US dollars, suggesting moderate expansion of the company’s resource base over time.
The total asset turnover ratio demonstrates an improving trend, indicating enhanced efficiency in utilizing assets to generate sales. Initially, the ratio hovered around 0.52 but showed a gradual increase across the quarters. Toward the end of the analyzed period, the ratio reached approximately 0.66, signaling that the company is more effectively deploying its assets to produce revenue.
- Net Sales
- Exhibited steady growth overall, rising from roughly 4,692 million US dollars to nearly 7,000 million US dollars over the course of the period.
- Some short-term fluctuations are evident but do not disrupt the upward momentum.
- Total Assets
- Experienced moderate growth with some variability, increasing from about 34,080 million US dollars to over 40,600 million US dollars.
- Fluctuations suggest periodic adjustments in asset base possibly related to operational or strategic changes.
- Total Asset Turnover
- Displayed an improving trend from 0.52 to 0.66, indicating increasing efficiency in asset utilization.
- This upward trend reflects an enhanced ability to generate sales relative to asset size.
In conclusion, the financial data indicates positive operational performance characterized by growing sales, expanding asset base, and improving efficiency in asset use. The combination of these factors reflects a favorable trajectory in financial and operational metrics.
Equity Turnover
Eaton Corp. plc, equity turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-09-30), 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), 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).
1 Q3 2025 Calculation
Equity turnover
= (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
÷ Total Eaton shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends and developments over the examined periods.
- Net Sales
-
Net sales demonstrated a generally increasing trend across the quarters. Starting from approximately 4,692 million USD, the figure rose steadily with minor fluctuations to reach around 6,988 million USD by the last period. This growth suggests ongoing expansion in revenue generation, particularly evident from early 2023 onward as sales consistently exceeded previous levels. A slight dip can be observed towards the end of 2024 but quickly recovered in 2025, maintaining an upward momentum overall.
- Total Eaton Shareholders’ Equity
-
Shareholders’ equity showed an initial gradual increase from 14,995 million USD to a peak near 19,292 million USD around early to mid-2024. Following this peak, there was a mild decline and stabilization, averaging near 18,500 to 18,800 million USD towards the final quarters. This pattern indicates that while the equity base grew substantially over time, some pressures or distributions may have led to the modest decrease observed in the latter part of the period.
- Equity Turnover Ratio
-
The equity turnover ratio remained relatively stable in the early periods, fluctuating slightly around values of 1.18 to 1.26. However, from 2023 onwards, the ratio exhibited a consistent upward trend, increasing to approximately 1.41 by the final quarter. This rising equity turnover ratio indicates improved efficiency in utilizing shareholders’ equity to generate sales, reflecting positively on management's ability to leverage capital for revenue growth.
Overall, the data depicts a company with increasing revenue and improved capital utilization, alongside a moderate increase and subsequent stabilization in shareholders’ equity. The equity turnover ratio's rising trend signifies enhanced operational effectiveness in relation to equity employed.