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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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
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Long-term Activity Ratios (Summary)
Eaton Corp. plc, long-term (investment) activity ratios (quarterly data)
Based on: 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 long-term investment activity ratios demonstrate generally positive trends over the observed period, with some fluctuations. Asset utilization, as measured by turnover ratios, has shown incremental improvements, suggesting increasing efficiency in asset deployment. However, a closer examination of individual ratios reveals nuanced patterns.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a slight upward trend from 6.38 in March 2022 to a peak of 6.80 in September 2022, before settling around the 6.60-6.70 range for most of 2023. A modest decline is observed in the latter half of the period, ending at 6.36 in December 2025. This suggests a generally stable ability to generate revenue from fixed assets, with a recent softening in efficiency.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This ratio, which incorporates operating lease obligations, presents a similar pattern to the standard net fixed asset turnover. It increased from 5.58 in March 2022 to 5.74 in September 2023, then experienced a decline to 5.40 by December 2025. The inclusion of lease assets appears to result in a lower overall turnover compared to fixed assets alone, indicating that these assets contribute less revenue per dollar invested. The recent decline mirrors that of the standard fixed asset turnover, suggesting a consistent trend across both calculations.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a consistent, albeit gradual, increase throughout the period. Starting at 0.56 in March 2022, it rose to 0.67 by December 2025. This indicates an improving ability to generate sales from all assets, suggesting enhanced overall asset management. The increase is relatively steady, without significant volatility.
- Equity Turnover
- The equity turnover ratio shows the most pronounced upward trend among the observed ratios. It increased from 1.19 in March 2022 to 1.41 in both September 2025 and December 2025, with intermediate peaks at 1.35 and 1.40. This suggests a growing ability to generate sales relative to shareholder equity, potentially indicating improved profitability or more efficient use of equity financing. The acceleration in the latter part of the period is particularly noteworthy.
In summary, the company demonstrates improving asset utilization efficiency, particularly concerning its equity base. While fixed asset turnover shows some recent softening, the overall trend across all ratios suggests a positive trajectory in investment activity and asset management.
Net Fixed Asset Turnover
Eaton Corp. plc, net fixed asset turnover calculation (quarterly data)
| 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) | |||||||||||||||||||||
| 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-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 Q4 2025 Calculation
Net fixed asset turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Net property, plant and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio for the analyzed period demonstrates a generally stable performance with some fluctuation. Overall, the ratio remains within a relatively narrow range, indicating consistent efficiency in utilizing fixed assets to generate sales.
- Initial Trend (Mar 31, 2022 – Dec 31, 2022)
- The ratio began at 6.38 and exhibited an increasing trend, peaking at 6.80 in September 2022. This suggests improving efficiency in fixed asset utilization during this period. A slight decrease to 6.59 was observed by the end of the year, but remained above the initial value.
- Stabilization and Slight Increase (Mar 31, 2023 – Sep 30, 2023)
- From March 2023 through September 2023, the ratio stabilized, fluctuating between 6.67 and 6.77. This indicates a consistent level of sales generation relative to the fixed asset base. The values remained relatively flat, suggesting no significant changes in operational efficiency.
- Recent Decline (Dec 31, 2023 – Dec 31, 2025)
- A gradual downward trend is apparent from December 2023 onwards. The ratio decreased from 6.57 to 6.36 over the course of the analyzed period. While the decline is moderate, it warrants further investigation to determine the underlying causes, such as potential increases in fixed assets without corresponding sales growth, or a slowdown in sales.
- Overall Range
- Throughout the entire period, the net fixed asset turnover ratio varied between a low of 6.36 and a high of 6.80. This relatively small range suggests a consistent business model and operational approach regarding fixed asset utilization. The most recent values are near the lower end of this range.
In conclusion, the net fixed asset turnover ratio indicates a generally efficient use of fixed assets. However, the recent downward trend suggests a potential need for monitoring and analysis to ensure continued optimal performance.
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)
| 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) | |||||||||||||||||||||
| 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-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 Q4 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using net property, plant, and equipment inclusive of operating leases and right-of-use assets, demonstrates a generally stable performance over the observed period, with some fluctuations. Net sales exhibited an overall upward trend, while net property, plant, and equipment also increased, influencing the turnover ratio’s behavior.
- Overall Trend
- The ratio fluctuated between approximately 5.40 and 5.74 throughout the period. Initial values in the first quarter of 2022 were 5.58, increasing to 5.73 by the third quarter of the same year. A slight decline to 5.55 was noted in the fourth quarter of 2022, and this pattern of minor fluctuations continued through 2023 and into 2024.
- Short-Term Fluctuations (2022-2023)
- From March 2022 through September 2023, the ratio experienced incremental increases, peaking at 5.74 in the third quarter of 2023. This suggests a period of efficient asset utilization relative to sales. However, the fourth quarter of 2023 saw a decrease to 5.55, potentially indicating a temporary slowdown in sales relative to the asset base.
- Recent Performance (2024-2025)
- The ratio decreased from 5.53 in the first quarter of 2024 to 5.40 in the fourth quarter of 2025. While the first half of 2024 showed relative stability around 5.50, a gradual decline was observed in the latter half of 2024 and continued into the first half of 2025. The ratio experienced a slight increase in the third quarter of 2025, but then decreased again in the final quarter.
- Relationship to Sales and Asset Base
- The observed fluctuations in the net fixed asset turnover ratio appear to correlate with both sales and the net value of property, plant, and equipment. Increases in the asset base, particularly noticeable in late 2022 and 2023, were generally accompanied by increases in net sales, mitigating the potential for a significant decline in the turnover ratio. However, the recent decline in the ratio, despite continued growth in net sales, suggests that the asset base is growing at a faster rate than sales.
In conclusion, the net fixed asset turnover ratio indicates a generally consistent level of asset utilization, although a slight downward trend has emerged in the most recent periods. Continued monitoring of this ratio, alongside sales and asset investment, is recommended to assess the long-term implications of these trends.
Total Asset Turnover
Eaton Corp. plc, total asset turnover calculation (quarterly data)
| 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) | |||||||||||||||||||||
| 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-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 Q4 2025 Calculation
Total asset turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio for the analyzed period demonstrates a generally increasing trend, albeit with some quarterly fluctuations. This ratio, which measures how efficiently a company utilizes its assets to generate sales, has shown improvement over the observed timeframe.
- Overall Trend
- From March 31, 2022, to December 31, 2025, the ratio generally increased from 0.56 to 0.67. This suggests a growing efficiency in asset utilization. The most significant increases occurred between September 2024 and December 2025.
- Short-Term Fluctuations
- While the overall trend is positive, there were instances of quarterly decreases. A slight dip was observed from March 31, 2023 (0.60) to June 30, 2023 (0.60), and again from December 31, 2023 (0.60) to March 31, 2024 (0.61). A minor decrease also occurred between December 31, 2024 (0.65) and March 31, 2025 (0.64). These fluctuations may be attributable to seasonal sales patterns or temporary changes in asset levels.
- Recent Performance
- The ratio reached its highest point at 0.67 in December 2025, indicating the most efficient asset utilization within the analyzed period. The consistent values of 0.66 and 0.67 in September 2025 and December 2025, respectively, suggest a sustained level of efficiency.
- Relationship to Sales and Assets
- Net sales exhibited an overall upward trend, increasing from US$4,843 million in March 2022 to US$7,055 million in December 2025. Total assets also increased over the same period, moving from US$35,208 million to US$41,251 million. The increasing asset turnover ratio indicates that sales growth has outpaced the growth in total assets, signifying improved operational efficiency.
In conclusion, the total asset turnover ratio demonstrates a positive trajectory, suggesting improved efficiency in converting assets into sales. While some quarterly variations exist, the overall trend indicates effective asset management.
Equity Turnover
Eaton Corp. plc, equity turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| 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-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 Q4 2025 Calculation
Equity turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Total Eaton shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally increasing trend, indicating growing efficiency in generating sales from shareholder investments. Initial values fluctuate modestly before exhibiting a more pronounced upward movement in the later quarters of the observed timeframe.
- Overall Trend
- The equity turnover ratio begins at 1.19 and generally increases to 1.41 over the period. While some quarterly variations exist, the overall trajectory is positive. The most significant increase occurs between December 2023 and December 2025, moving from 1.22 to 1.41.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to June 2023, the ratio remains relatively stable, oscillating between 1.19 and 1.23. This suggests a consistent, but not improving, level of sales generation relative to equity during this period. A slight peak is observed in September 2022 at 1.26.
- Accelerated Growth (2023-2025)
- Starting in March 2023, the ratio begins a more consistent upward trend. Each subsequent quarter shows an increase, culminating in a ratio of 1.41 by December 2025. This indicates a strengthening ability to generate sales from the existing equity base. The largest quarterly increase is observed between September 2024 and March 2025 (1.29 to 1.37).
- Peak Performance
- The highest equity turnover ratio is recorded in December 2025 at 1.41. This signifies that for every dollar of equity, the company generated $1.41 in sales during that period. This represents the most efficient use of equity observed throughout the analyzed timeframe.
The consistent increase in the equity turnover ratio suggests improved operational efficiency or a strategic shift towards more effective asset utilization. Further investigation into the drivers of net sales growth and changes in shareholder equity would provide a more comprehensive understanding of this trend.