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.
Long-term Activity Ratios (Summary)
Eaton Corp. plc, long-term (investment) activity 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 long-term activity ratios demonstrate a period of stability in fixed asset efficiency and a consistent improvement in equity utilization, punctuated by a notable volatility event in early 2026.
- Net Fixed Asset Turnover
- The ratio remained relatively consistent, fluctuating between 6.24 and 6.80. A peak was observed in September 2022, followed by a period of stability around 6.60 through 2024. A moderate decline occurred toward the end of the observed period, reaching a low of 6.24 in March 2026 before recovering slightly to 6.39 by June 2026. The inclusion of right-of-use assets consistently lowered the turnover ratio, typically by approximately 1.0 to 1.2 units, while mirroring the same directional trends as the standard net fixed asset turnover.
- Total Asset Turnover
- An overall upward trajectory is evident from March 2022 (0.56) through December 2025 (0.67), indicating improved efficiency in utilizing the total asset base to generate revenue. However, a sharp contraction is noted in March 2026, where the ratio dropped to 0.52, followed by a marginal increase to 0.53 in June 2026.
- Equity Turnover
- The equity turnover ratio exhibits a sustained and consistent growth pattern. Increasing from 1.19 in March 2022 to 1.48 by June 2026, the trend suggests a strengthening ability to generate sales relative to the equity invested in the business. This upward trend continued unabated even during the period when asset-based turnover ratios declined in early 2026.
AI Ask an analyst for more
Net Fixed Asset Turnover
Eaton Corp. plc, net fixed asset turnover 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) | ||||||||||||||||||||||||
| Net sales | 8,531) | 7,451) | 7,055) | 6,988) | 7,028) | 6,377) | 6,240) | 6,345) | 6,350) | 5,943) | 5,967) | 5,880) | 5,866) | 5,483) | 5,384) | 5,313) | 5,212) | 4,843) | ||||||
| Net property, plant and equipment | 4,702) | 4,574) | 4,316) | 4,068) | 4,032) | 3,765) | 3,729) | 3,711) | 3,604) | 3,558) | 3,530) | 3,341) | 3,267) | 3,206) | 3,147) | 2,967) | 3,043) | 3,098) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | 6.39 | 6.24 | 6.36 | 6.55 | 6.45 | 6.72 | 6.67 | 6.63 | 6.70 | 6.65 | 6.57 | 6.77 | 6.75 | 6.67 | 6.59 | 6.80 | 6.50 | 6.38 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 5.76 | 5.85 | 5.82 | 6.69 | 6.46 | 6.06 | 5.83 | 6.52 | 6.70 | 7.15 | 7.30 | 7.23 | 7.04 | 6.72 | 6.31 | 5.85 | 5.72 | 5.68 | ||||||
| Caterpillar Inc. | 4.54 | 4.40 | 4.23 | 4.27 | 4.29 | 4.45 | 4.59 | 4.85 | 5.01 | 5.08 | 5.04 | 5.17 | 5.10 | 4.91 | 4.70 | 4.62 | 4.36 | 4.18 | ||||||
| GE Aerospace | 5.83 | 5.64 | 5.30 | 5.30 | 5.05 | 4.85 | 4.83 | 6.03 | 7.23 | 4.77 | 5.17 | 5.50 | 5.58 | 5.84 | 5.08 | 5.04 | 4.83 | 4.73 | ||||||
| Honeywell International Inc. | 8.28 | 8.07 | 8.09 | 5.80 | 5.94 | 6.17 | 6.22 | 6.50 | 6.49 | 6.48 | 6.48 | 6.64 | 6.59 | 6.57 | 6.48 | 6.54 | 6.45 | 6.27 | ||||||
| Lockheed Martin Corp. | 6.76 | 6.66 | 8.46 | 8.41 | 8.29 | 8.24 | 8.14 | 8.43 | 8.47 | 8.34 | 8.07 | 8.41 | 8.46 | 8.33 | 8.27 | 8.48 | 8.48 | 8.70 | ||||||
| RTX Corp. | 5.51 | 5.37 | 5.25 | 5.27 | 5.16 | 5.07 | 5.02 | 4.98 | 4.61 | 4.54 | 4.38 | 4.37 | 4.61 | 4.53 | 4.42 | 4.50 | 4.43 | 4.37 | ||||||
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
Net fixed asset turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Net property, plant and equipment
= (8,531 + 7,451 + 7,055 + 6,988)
÷ 4,702 = 6.39
2 Click competitor name to see calculations.
An analysis of the long-term investment activity reveals a consistent expansion in both revenue generation and the fixed asset base over the observed period from March 2022 to June 2026. While net sales exhibited strong growth, the net property, plant, and equipment also increased, leading to a relatively stable but slightly fluctuating net fixed asset turnover ratio.
- Revenue Growth Trends
- Net sales demonstrated a sustained upward trajectory, rising from 4,843 million USD in March 2022 to 8,531 million USD by June 2026. The most significant acceleration in revenue occurred between December 2025 and June 2026, where sales increased from 7,055 million USD to 8,531 million USD, indicating a period of rapid commercial expansion.
- Fixed Asset Investment
- Net property, plant, and equipment followed a general growth pattern, increasing from 3,098 million USD in March 2022 to 4,702 million USD in June 2026. This represents a substantial investment in long-term productive capacity. The growth in the asset base was most pronounced starting in early 2024, with a steady climb that suggests a strategic scaling of operations.
- Net Fixed Asset Turnover Efficiency
- The net fixed asset turnover ratio remained largely stable, oscillating within a range of 6.24 to 6.80. A peak in efficiency was observed in September 2023, reaching 6.77. However, a gradual decline in the ratio began in late 2024, bottoming at 6.24 in March 2026. This downward movement suggests that the growth in fixed assets temporarily outpaced the growth in net sales during that window, implying a lag between capital investment and the realization of associated revenue.
- Overall Operational Correlation
- The recovery of the turnover ratio to 6.39 in June 2026, coinciding with a sharp spike in net sales, indicates that the increased capacity from prior capital expenditures began to yield higher returns. The overall trend suggests a disciplined approach to asset expansion, where increases in the fixed asset base are generally supported by proportional growth in top-line revenue.
AI Ask an analyst for more
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, 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) | ||||||||||||||||||||||||
| Net sales | 8,531) | 7,451) | 7,055) | 6,988) | 7,028) | 6,377) | 6,240) | 6,345) | 6,350) | 5,943) | 5,967) | 5,880) | 5,866) | 5,483) | 5,384) | 5,313) | 5,212) | 4,843) | ||||||
| Net property, plant and equipment | 4,702) | 4,574) | 4,316) | 4,068) | 4,032) | 3,765) | 3,729) | 3,711) | 3,604) | 3,558) | 3,530) | 3,341) | 3,267) | 3,206) | 3,147) | 2,967) | 3,043) | 3,098) | ||||||
| Operating lease assets | 855) | 844) | 768) | 694) | 709) | 813) | 806) | 817) | 785) | 722) | 648) | 600) | 594) | 579) | 570) | 555) | 493) | 449) | ||||||
| Net property, plant and equipment (including operating lease, right-of-use asset) | 5,557) | 5,418) | 5,084) | 4,762) | 4,741) | 4,578) | 4,535) | 4,528) | 4,389) | 4,280) | 4,178) | 3,941) | 3,861) | 3,785) | 3,717) | 3,522) | 3,536) | 3,547) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 5.40 | 5.26 | 5.40 | 5.59 | 5.48 | 5.53 | 5.49 | 5.43 | 5.50 | 5.53 | 5.55 | 5.74 | 5.71 | 5.65 | 5.58 | 5.73 | 5.59 | 5.58 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||
| RTX Corp. | 5.00 | 4.85 | 4.72 | 4.72 | 4.63 | 4.53 | 4.50 | 4.46 | 4.17 | 4.11 | 3.96 | 3.92 | 4.13 | 4.04 | 3.95 | 4.01 | 3.93 | 3.87 | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= (8,531 + 7,451 + 7,055 + 6,988)
÷ 5,557 = 5.40
2 Click competitor name to see calculations.
An analysis of the long-term investment activity indicates a period of significant scaling in both revenue generation and asset acquisition, with a consistent relationship maintained between fixed asset investment and sales output.
- Net Sales Growth Trends
- Net sales exhibit a strong and sustained upward trajectory, increasing from 4,843 million USD in March 2022 to 8,531 million USD by June 2026. The most pronounced growth occurs in the latter half of the period, particularly between December 2024 and June 2026, where quarterly revenues transitioned from approximately 6,240 million USD to over 8,500 million USD.
- Fixed Asset Base Expansion
- The net property, plant, and equipment (including right-of-use assets) grew steadily from 3,547 million USD in March 2022 to 5,557 million USD in June 2026. This expansion reflects a continuous investment in productive capacity to support the rising sales volume, with the asset base increasing by approximately 56% over the observed timeframe.
- Net Fixed Asset Turnover Efficiency
- The net fixed asset turnover ratio remained remarkably stable throughout the analyzed period, fluctuating within a narrow band between 5.26 and 5.74. This stability suggests that capital expenditures were scaled in direct proportion to revenue growth, preventing significant erosion of asset productivity despite the rapid expansion of the company's operational footprint.
- Ratio Volatility and Correlation
- A peak in efficiency was observed in September 2023, reaching a ratio of 5.74. Subsequently, a slight downward trend emerged, reaching a period low of 5.26 in March 2026. This dip suggests a temporary lag where asset growth slightly outpaced revenue growth before the ratio recovered to 5.40 in June 2026. The overall correlation indicates that for every dollar invested in net fixed assets, the organization consistently generates between 5.26 and 5.74 dollars in sales.
The synchronization between the growth of the asset base and net sales indicates a disciplined approach to capacity management. The consistency of the turnover ratio implies that the company successfully maintained its operational efficiency while transitioning to a significantly larger scale of operations.
AI Ask an analyst for more
Total Asset Turnover
Eaton Corp. plc, total asset turnover 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) | ||||||||||||||||||||||||
| Net sales | 8,531) | 7,451) | 7,055) | 6,988) | 7,028) | 6,377) | 6,240) | 6,345) | 6,350) | 5,943) | 5,967) | 5,880) | 5,866) | 5,483) | 5,384) | 5,313) | 5,212) | 4,843) | ||||||
| Total assets | 56,181) | 55,085) | 41,251) | 40,650) | 40,507) | 39,206) | 38,381) | 39,236) | 39,381) | 38,535) | 38,432) | 37,289) | 36,772) | 35,517) | 35,014) | 34,364) | 35,153) | 35,208) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | 0.53 | 0.52 | 0.67 | 0.66 | 0.64 | 0.65 | 0.65 | 0.63 | 0.61 | 0.61 | 0.60 | 0.61 | 0.60 | 0.60 | 0.59 | 0.59 | 0.56 | 0.56 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 0.57 | 0.56 | 0.53 | 0.54 | 0.49 | 0.44 | 0.43 | 0.53 | 0.52 | 0.57 | 0.57 | 0.56 | 0.55 | 0.52 | 0.49 | 0.45 | 0.45 | 0.45 | ||||||
| Caterpillar Inc. | 0.69 | 0.70 | 0.65 | 0.65 | 0.66 | 0.70 | 0.70 | 0.72 | 0.76 | 0.76 | 0.73 | 0.73 | 0.72 | 0.70 | 0.69 | 0.66 | 0.63 | 0.61 | ||||||
| GE Aerospace | 0.37 | 0.35 | 0.33 | 0.31 | 0.30 | 0.29 | 0.29 | 0.35 | 0.42 | 0.36 | 0.40 | 0.43 | 0.42 | 0.43 | 0.39 | 0.40 | 0.39 | 0.37 | ||||||
| Honeywell International Inc. | 0.49 | 0.51 | 0.51 | 0.48 | 0.49 | 0.51 | 0.51 | 0.52 | 0.54 | 0.56 | 0.60 | 0.59 | 0.58 | 0.60 | 0.57 | 0.58 | 0.55 | 0.54 | ||||||
| Lockheed Martin Corp. | 1.23 | 1.27 | 1.25 | 1.22 | 1.22 | 1.27 | 1.28 | 1.28 | 1.29 | 1.27 | 1.29 | 1.19 | 1.18 | 1.21 | 1.25 | 1.24 | 1.24 | 1.28 | ||||||
| RTX Corp. | 0.54 | 0.53 | 0.52 | 0.51 | 0.50 | 0.50 | 0.50 | 0.48 | 0.45 | 0.44 | 0.43 | 0.41 | 0.44 | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | ||||||
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
Total asset turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Total assets
= (8,531 + 7,451 + 7,055 + 6,988)
÷ 56,181 = 0.53
2 Click competitor name to see calculations.
A sustained increase in net sales is observed from March 2022 through June 2026, with revenue rising from 4,843 million USD to 8,531 million USD. Concurrently, total assets grew from 35,208 million USD to 56,181 million USD over the same period, although the growth trajectory experienced a significant acceleration in early 2026.
- Asset Utilization Efficiency
- Between March 2022 and December 2025, a consistent upward trend in total asset turnover is evident. The ratio improved from 0.56 to a peak of 0.67, indicating that the organization successfully increased its ability to generate sales from its asset base. This period reflects a steady optimization of operational efficiency where revenue growth outpaced the expansion of total assets.
- Impact of Asset Base Expansion
- A sharp decline in the turnover ratio occurred starting in March 2026. Total assets increased abruptly from 41,251 million USD in December 2025 to 55,085 million USD by March 2026. This substantial expansion of the balance sheet led to a contraction in the total asset turnover ratio, which dropped to 0.52 in March 2026 and 0.53 in June 2026, suggesting a significant investment or acquisition that had not yet reached full revenue-generating capacity.
- Revenue Growth Correlation
- Despite the decline in the turnover ratio during the first half of 2026, net sales showed their most aggressive growth during this window, increasing from 7,451 million USD in March 2026 to 8,531 million USD in June 2026. The fact that the turnover ratio remained low (0.53) despite this sales surge confirms that the asset base grew at a disproportionately higher rate than the corresponding revenue gains during this specific interval.
AI Ask an analyst for more
Equity Turnover
Eaton Corp. plc, equity turnover 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) | ||||||||||||||||||||||||
| Net sales | 8,531) | 7,451) | 7,055) | 6,988) | 7,028) | 6,377) | 6,240) | 6,345) | 6,350) | 5,943) | 5,967) | 5,880) | 5,866) | 5,483) | 5,384) | 5,313) | 5,212) | 4,843) | ||||||
| Total Eaton shareholders’ equity | 20,254) | 19,721) | 19,425) | 18,843) | 18,606) | 18,506) | 18,488) | 19,117) | 19,219) | 19,292) | 19,036) | 18,383) | 17,953) | 17,449) | 17,038) | 16,068) | 16,380) | 16,620) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | 1.48 | 1.45 | 1.41 | 1.41 | 1.40 | 1.37 | 1.35 | 1.29 | 1.26 | 1.23 | 1.22 | 1.23 | 1.23 | 1.23 | 1.22 | 1.26 | 1.21 | 1.19 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Boeing Co. | 15.41 | 15.40 | 16.40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 3.66 | 3.59 | 3.00 | 2.96 | 3.19 | 3.31 | 3.15 | 3.21 | 3.68 | 3.61 | 3.28 | 3.10 | 3.39 | 3.24 | 3.57 | 3.45 | 3.26 | 2.92 | ||||||
| GE Aerospace | 2.69 | 2.49 | 2.27 | 2.14 | 1.98 | 1.87 | 1.82 | 2.32 | 2.76 | 1.97 | 2.36 | 2.34 | 2.21 | 2.24 | 2.02 | 2.29 | 2.06 | 1.82 | ||||||
| Honeywell International Inc. | 2.05 | 2.77 | 2.69 | 2.31 | 2.36 | 2.19 | 2.07 | 2.17 | 2.20 | 2.24 | 2.31 | 2.11 | 2.09 | 2.13 | 2.12 | 1.97 | 1.96 | 1.87 | ||||||
| Lockheed Martin Corp. | 8.78 | 10.03 | 11.17 | 11.87 | 13.47 | 10.75 | 11.22 | 9.90 | 11.51 | 10.47 | 9.89 | 7.30 | 7.29 | 6.86 | 7.12 | 5.41 | 5.61 | 6.57 | ||||||
| RTX Corp. | 1.41 | 1.36 | 1.36 | 1.33 | 1.34 | 1.33 | 1.34 | 1.29 | 1.23 | 1.17 | 1.15 | 0.96 | 0.97 | 0.94 | 0.92 | 0.94 | 0.93 | 0.89 | ||||||
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
Equity turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Total Eaton shareholders’ equity
= (8,531 + 7,451 + 7,055 + 6,988)
÷ 20,254 = 1.48
2 Click competitor name to see calculations.
An analysis of the financial performance between March 31, 2022, and June 30, 2026, reveals a consistent expansion in operational scale and an improvement in the efficiency of capital utilization. The period is characterized by steady growth in revenue and a controlled increase in the equity base, resulting in a positive trajectory for the equity turnover ratio.
- Net Sales Performance
- Revenue exhibited a strong and sustained upward trend, increasing from 4,843 million US dollars in the first quarter of 2022 to 8,531 million US dollars by the second quarter of 2026. This growth was relatively linear through 2023 and 2024, with a more pronounced acceleration observed in the first half of 2026, where sales rose from 7,451 million to 8,531 million US dollars within a single quarter.
- Shareholders' Equity Trends
- Total equity grew from 16,620 million US dollars to 20,254 million US dollars over the analyzed timeframe. While the general trend was positive, the growth was more gradual than that of net sales. A brief period of contraction was noted in late 2024, with equity dipping to 18,488 million US dollars in September 2024 before resuming a steady climb through 2025 and 2026.
- Equity Turnover Efficiency
- The equity turnover ratio, which measures the efficiency of generating sales from shareholders' capital, showed three distinct phases. From March 2022 to December 2023, the ratio remained relatively stagnant, fluctuating narrowly between 1.19 and 1.26. Beginning in early 2024, a sustained upward trend emerged, with the ratio climbing from 1.23 in March 2024 to 1.48 by June 2026. This indicates that the growth in net sales significantly outpaced the growth in equity during the latter half of the period, reflecting enhanced asset productivity and a more efficient deployment of shareholder investments.
The correlation between the accelerating sales growth and the stabilizing equity base suggests an improvement in the company's operational leverage. The transition from a stagnant turnover ratio in 2022-2023 to a growth phase in 2024-2026 signifies a strategic shift toward higher capital efficiency.
AI Ask an analyst for more