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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Long-term Activity Ratios (Summary)
Eaton Corp. plc, long-term (investment) activity ratios (quarterly data)
Based on: 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 indicate a period of relative stability in fixed asset utilization coupled with a sustained improvement in equity efficiency, though a notable downturn in asset turnover is observed in the final quarter of the analysis period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio remained largely stable over the observed period, fluctuating within a narrow range between 6.24 and 6.80. An initial peak occurred in September 2022 at 6.80, followed by a period of consolidation around the 6.60 level. However, a gradual decline is evident starting in June 2025, reaching a period low of 6.24 by March 2026, suggesting a slight decrease in the efficiency of fixed assets in generating revenue.
- Net Fixed Asset Turnover including Right-of-Use Assets
- Incorporating operating leases reveals a similar pattern to the standard fixed asset turnover, albeit at a lower baseline. The ratio fluctuated between 5.26 and 5.74, peaking in September 2023. The inclusion of right-of-use assets consistently lowered the turnover ratio, indicating that lease obligations contribute to the total asset base without providing a proportional increase in immediate revenue generation. A downward trend mirrored the standard fixed asset turnover, ending at 5.26 in March 2026.
- Total Asset Turnover
- Total asset turnover exhibited a steady upward trajectory for the majority of the period, rising from 0.56 in March 2022 to a peak of 0.67 in December 2025. This growth suggests an overall improvement in the efficiency of the total asset base in producing sales. This trend was abruptly reversed in the final quarter, with the ratio dropping sharply to 0.52 in March 2026.
- Equity Turnover
- Equity turnover demonstrates the most consistent growth trend among the analyzed ratios. Starting at 1.19 in March 2022, the ratio rose steadily to 1.45 by March 2026. This continuous increase indicates an improving ability to generate revenue from shareholder investments, reflecting higher operational efficiency relative to the equity base over the four-year span.
Net Fixed Asset Turnover
Eaton Corp. plc, net fixed asset turnover calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| 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: 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 Q1 2026 Calculation
Net fixed asset turnover
= (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
÷ Net property, plant and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analyzed period is characterized by a consistent expansion in both revenue generation and capital investment. Net sales grew from 4,843 million in March 2022 to 7,451 million by March 2026, representing a sustained upward trajectory. Simultaneously, net property, plant, and equipment increased from 3,098 million to 4,574 million, reflecting significant long-term investment activity.
- Net Fixed Asset Turnover Stability
- Between March 2022 and December 2023, the net fixed asset turnover ratio remained relatively stable, fluctuating within a narrow range between 6.38 and 6.80. The peak efficiency was recorded in September 2022 at 6.80, indicating a period of optimal asset utilization relative to sales volume.
- Recent Efficiency Trends
- A gradual downward trend in the turnover ratio is observable starting in mid-2024. The ratio declined from 6.70 in June 2024 to 6.24 by March 2026. This suggests that during the latter stages of the period, the growth in fixed asset investment began to outpace the growth in net sales.
- Capital Investment Impact
- The steady rise in net property, plant, and equipment indicates a strategic commitment to increasing production capacity or infrastructure. The resulting decline in the turnover ratio toward the end of the period likely reflects a temporal lag between the deployment of new fixed assets and the full realization of the corresponding revenue increases.
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)
| 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 | |||||||||||||||||||||||
| 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: 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 Q1 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the investment activity ratios reveals a period of sustained expansion in both revenue generation and fixed asset investment. While net sales experienced significant growth over the observed period, the efficiency of fixed asset utilization, as measured by the net fixed asset turnover ratio, transitioned from a phase of stability to a gradual decline.
- Revenue and Asset Growth Trends
- Net sales demonstrated a consistent upward trajectory, increasing from 4,843 million USD in March 2022 to 7,451 million USD by March 2026. Parallel to this revenue growth, net property, plant, and equipment (including right-of-use assets) rose from 3,547 million USD to 5,418 million USD. This indicates a strategic commitment to expanding the company's operational capacity to support increasing demand.
- Net Fixed Asset Turnover Performance
- The net fixed asset turnover ratio remained relatively stable between March 2022 and December 2024, fluctuating within a narrow band between 5.43 and 5.74. The peak efficiency was observed in September 2023, where the ratio reached 5.74, suggesting an optimal alignment between asset utilization and sales output during that period.
- Efficiency Decay and Asset Lag
- A discernible downward trend in the turnover ratio emerged starting in late 2024 and accelerating through March 2026, where the ratio reached a period low of 5.26. This decline suggests that the growth in net fixed assets began to outpace the growth in net sales. Such a pattern typically indicates that recent capital expenditures have not yet reached full productive capacity or that the incremental return on new investments is lower than the historical average.
Total Asset Turnover
Eaton Corp. plc, total asset turnover calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| 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: 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 Q1 2026 Calculation
Total asset turnover
= (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of long-term investment activity reveals a sustained period of improving asset utilization efficiency followed by a significant structural shift in the asset base during the first quarter of 2026.
- Net Sales Performance
- Revenue demonstrates a consistent upward trajectory, rising from 4,843 million USD in March 2022 to 7,451 million USD by March 2026. Growth was steady throughout 2023 and 2024, with a notable acceleration in 2025, indicating a strong expansion of the company's top-line earnings.
- Total Assets Evolution
- The asset base experienced gradual growth for the majority of the period, moving from 35,208 million USD in March 2022 to 41,251 million USD by December 2025. However, a substantial increase occurred in March 2026, where total assets jumped to 55,085 million USD. This sharp increase suggests a major capital expenditure, a significant acquisition, or a substantial reallocation of resources.
- Total Asset Turnover Trends
- Between March 2022 and December 2025, the total asset turnover ratio showed a gradual positive trend, increasing from 0.56 to a peak of 0.67. This progression indicates that the company became more efficient at generating sales from its existing asset base over time. This efficiency gain was abruptly reversed in March 2026, with the ratio dropping to 0.52. The decline is a direct result of the asset base expanding at a rate that far outpaced the growth in net sales, leading to a temporary reduction in asset productivity.
Equity Turnover
Eaton Corp. plc, equity turnover calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| 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: 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 Q1 2026 Calculation
Equity turnover
= (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
÷ Total Eaton shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of long-term investment activity reveals a consistent improvement in the ability to generate revenue relative to the equity base. Net sales exhibited a strong upward trajectory, increasing from 4,843 million USD in March 2022 to 7,451 million USD by March 2026. Concurrently, shareholders' equity grew at a more moderate pace, rising from 16,620 million USD to 19,721 million USD over the same period.
- Equity Turnover Trend
- The equity turnover ratio demonstrates a positive long-term trend, ascending from 1.19 in March 2022 to 1.45 by March 2026. This steady increase indicates an enhancement in capital efficiency, as more revenue is being generated for every unit of shareholder equity invested.
- Operational Phases
- The data indicates two distinct phases of efficiency. From December 2022 to March 2024, the equity turnover ratio remained largely stagnant, fluctuating narrowly between 1.22 and 1.23. A second phase of accelerated efficiency gains began in June 2024, with the ratio climbing consistently from 1.26 to reach its peak of 1.45.
- Revenue and Equity Correlation
- The expansion of the turnover ratio is primarily driven by sales growth that outpaced the increase in equity. A significant inflection point is observable between December 2024 and June 2025, where a sharp rise in net sales from 6,240 million USD to 7,028 million USD occurred while equity remained relatively stable, resulting in the ratio increasing from 1.35 to 1.40.