Analysis of Short-term (Operating) 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.
Short-term Activity Ratios (Summary)
Turnover Ratios
Average No. Days
Eaton Corp. plc, short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 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 analyzed period exhibits a general decline in operational efficiency, characterized by a lengthening of the operating cycle and a slowdown in the turnover of key current assets. While the cash conversion cycle has remained relatively stable compared to the operating cycle, this stability is primarily driven by a strategic or necessary extension of payment terms to suppliers.
- Inventory and Receivables Management
- A consistent downward trend is observed in inventory turnover, which decreased from 4.03 in March 2022 to 3.50 by September 2026. This correlates with an increase in the average inventory processing period, rising from 90 days to 104 days over the same timeframe, indicating that goods are remaining in stock longer before being sold.
- Similarly, receivables turnover declined from 5.39 to 4.47. The average receivable collection period expanded from 68 days in early 2022 to 82 days by the end of the period, suggesting a slowdown in the conversion of credit sales into cash.
- Payables and Liquidity Cycles
- Payables turnover shows a significant decrease from 4.67 to 3.51. This is reflected in the average payables payment period, which extended from 78 days to 104 days. This trend indicates that the company is taking longer to settle its obligations to vendors, effectively using accounts payable as a source of short-term financing.
- The operating cycle, which combines the inventory and receivables periods, lengthened from 158 days to 186 days. Despite this expansion, the cash conversion cycle remained more contained, fluctuating between 79 and 96 days and ending at 82 days. The gap between the operating cycle and the cash conversion cycle has widened because the increase in the payables payment period has largely offset the inefficiencies in inventory and receivable collections.
- Working Capital Efficiency
- Working capital turnover exhibited significant volatility throughout the period. After a decline from 10.69 in September 2022 to a low of 5.33 in June 2023, the ratio saw a sharp recovery, peaking at 12.60 in March 2026 before stabilizing around 10.52. This fluctuation suggests periodic adjustments in the management of current assets and liabilities relative to revenue generation.
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Inventory Turnover
Eaton Corp. plc, inventory turnover calculation (quarterly data)
| Sep 30, 2026 | 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) | |||||||||||||||||||||||||
| Cost of products sold | 5,842) | 5,676) | 4,799) | 4,457) | 4,313) | 4,431) | 3,930) | 3,811) | 3,899) | 3,940) | 3,725) | 3,732) | 3,684) | 3,747) | 3,599) | 3,546) | 3,545) | 3,505) | 3,269) | ||||||
| Inventory | 5,941) | 5,417) | 5,146) | 4,721) | 4,613) | 4,581) | 4,392) | 4,227) | 4,178) | 3,963) | 3,868) | 3,739) | 3,713) | 3,670) | 3,604) | 3,430) | 3,428) | 3,445) | 3,317) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Inventory turnover1 | 3.50 | 3.55 | 3.50 | 3.63 | 3.57 | 3.51 | 3.55 | 3.64 | 3.66 | 3.81 | 3.85 | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 0.95 | 1.01 | 1.01 | 1.01 | 0.97 | 0.86 | 0.80 | 0.78 | 0.85 | 0.78 | 0.82 | 0.88 | 0.87 | 0.88 | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | ||||||
| Caterpillar Inc. | — | 2.38 | 2.40 | 2.47 | 2.20 | 2.16 | 2.21 | 2.39 | 2.36 | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | ||||||
| GE Aerospace | 2.67 | 2.63 | 2.50 | 2.44 | 2.35 | 2.29 | 2.34 | 2.49 | 3.29 | 4.08 | 2.58 | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | ||||||
| Honeywell International Inc. | 10.18 | 3.77 | 3.73 | 3.83 | 3.34 | 3.35 | 3.59 | 3.70 | 3.73 | 3.69 | 3.65 | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | ||||||
| Lockheed Martin Corp. | 17.52 | 15.40 | 15.93 | 19.13 | 17.97 | 17.84 | 17.94 | 18.46 | 19.41 | 20.21 | 18.67 | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | ||||||
| RTX Corp. | 5.07 | 5.17 | 5.09 | 5.30 | 4.97 | 4.77 | 4.83 | 5.12 | 4.74 | 4.64 | 4.76 | 4.83 | 4.60 | 4.68 | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Inventory turnover
= (Cost of products soldQ3 2026
+ Cost of products soldQ2 2026
+ Cost of products soldQ1 2026
+ Cost of products soldQ4 2025)
÷ Inventory
= (5,842 + 5,676 + 4,799 + 4,457)
÷ 5,941 = 3.50
2 Click competitor name to see calculations.
An analysis of operating activity from March 2022 through September 2026 reveals a period of substantial growth in operational volume accompanied by a gradual decline in inventory management efficiency.
- Cost of Products Sold (COPS)
- COPS exhibits a strong and consistent upward trend, increasing from 3,269 million USD in March 2022 to 5,842 million USD by September 2026. Growth remained relatively stable through 2023, followed by a marked acceleration starting in 2025, with the most significant expansion occurring in the first half of 2026.
- Inventory Levels
- Inventory assets have grown steadily throughout the analyzed period, rising from 3,317 million USD to 5,941 million USD. The growth in inventory is persistent and aligns with the overall increase in operational scale, though the accumulation has accelerated in the final year of the period.
- Inventory Turnover Ratio
- The inventory turnover ratio shows a clear downward trajectory over the long term, decreasing from 4.03 in March 2022 to 3.50 in September 2026. After reaching a peak of 4.04 in December 2022, the ratio entered a period of sustained decline. This indicates that inventory is being cycled more slowly over time, as the growth in inventory holdings has outpaced the growth in the cost of products sold.
The divergence between the rising cost of products sold and the declining turnover ratio suggests a shift in the operational cycle. While the company is scaling its output, the increasing amount of capital tied up in inventory relative to sales volume indicates a reduction in short-term asset efficiency.
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Receivables Turnover
Eaton Corp. plc, receivables turnover calculation (quarterly data)
| Sep 30, 2026 | 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 | 8,947) | 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) | ||||||
| Accounts receivable, net | 7,150) | 6,673) | 6,366) | 5,387) | 5,556) | 5,486) | 5,094) | 4,619) | 4,886) | 4,861) | 4,674) | 4,475) | 4,460) | 4,399) | 4,239) | 4,076) | 3,816) | 3,837) | 3,667) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Receivables turnover1 | 4.47 | 4.50 | 4.48 | 5.10 | 4.79 | 4.74 | 4.97 | 5.39 | 5.04 | 4.97 | 5.06 | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 23.33 | 26.74 | 26.45 | 30.63 | 24.37 | 23.61 | 21.67 | 25.28 | 25.33 | 23.31 | 25.83 | 29.37 | 24.99 | 24.99 | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | ||||||
| Caterpillar Inc. | — | 5.38 | 5.86 | 5.86 | 6.02 | 6.14 | 6.56 | 6.61 | 6.85 | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | ||||||
| GE Aerospace | 3.52 | 3.84 | 3.60 | 3.59 | 3.78 | 3.61 | 3.73 | 3.77 | 4.90 | 6.13 | 3.90 | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | ||||||
| Honeywell International Inc. | 6.61 | 4.56 | 4.67 | 4.91 | 4.23 | 4.31 | 4.64 | 4.92 | 4.80 | 4.81 | 4.94 | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | ||||||
| Lockheed Martin Corp. | 25.55 | 22.95 | 32.35 | 19.24 | 19.08 | 21.73 | 35.48 | 30.22 | 33.30 | 24.26 | 30.86 | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | ||||||
| RTX Corp. | 6.54 | 6.71 | 6.98 | 6.03 | 6.70 | 6.75 | 7.15 | 7.36 | 7.83 | 7.06 | 6.91 | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Receivables turnover
= (Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025)
÷ Accounts receivable, net
= (8,947 + 8,531 + 7,451 + 7,055)
÷ 7,150 = 4.47
2 Click competitor name to see calculations.
An analysis of the receivables turnover and its underlying components reveals a long-term shift in the efficiency of credit collection relative to revenue growth. Net sales exhibited a consistent upward trajectory, increasing from 4,843 million USD in March 2022 to 8,947 million USD by September 2026. Concurrently, net accounts receivable rose from 3,667 million USD to 7,150 million USD over the same period, indicating that the growth in outstanding customer balances closely tracked the expansion of sales volume.
- Receivables Turnover Performance
- The receivables turnover ratio demonstrated a gradual decline over the analyzed period. From March 2022 through December 2023, the ratio remained relatively stable, oscillating between a peak of 5.39 and a low of 5.01. Starting in 2024, a downward trend became more pronounced, with the ratio frequently dipping below the 5.00 threshold.
- Recent Trend Analysis (2025-2026)
- A more significant deceleration in turnover is evident in the final six quarters of the data. After a brief recovery to 5.10 in September 2025, the ratio dropped to a range between 4.47 and 4.50 throughout 2026. This decline coincides with a sharp increase in net sales, suggesting that accounts receivable grew at a rate disproportionate to the increase in revenue.
- Operational Implications
- The reduction in the turnover ratio indicates a lengthening of the average collection period. This pattern suggests either a strategic shift toward more lenient credit terms to support aggressive sales growth or a decrease in the efficiency of the collection process as operations scaled, resulting in a higher proportion of capital being tied up in receivables.
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Payables Turnover
Eaton Corp. plc, payables turnover calculation (quarterly data)
| Sep 30, 2026 | 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) | |||||||||||||||||||||||||
| Cost of products sold | 5,842) | 5,676) | 4,799) | 4,457) | 4,313) | 4,431) | 3,930) | 3,811) | 3,899) | 3,940) | 3,725) | 3,732) | 3,684) | 3,747) | 3,599) | 3,546) | 3,545) | 3,505) | 3,269) | ||||||
| Accounts payable | 5,911) | 5,421) | 4,910) | 4,168) | 3,826) | 3,762) | 3,654) | 3,678) | 3,609) | 3,497) | 3,400) | 3,365) | 3,255) | 3,192) | 3,118) | 3,072) | 2,937) | 3,013) | 2,867) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | 3.51 | 3.55 | 3.67 | 4.11 | 4.31 | 4.27 | 4.26 | 4.18 | 4.24 | 4.31 | 4.38 | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 5.62 | 6.25 | 6.40 | 6.50 | 6.81 | 6.72 | 6.43 | 6.03 | 5.79 | 5.61 | 5.92 | 5.86 | 6.18 | 6.28 | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | ||||||
| Caterpillar Inc. | — | 4.76 | 4.88 | 4.99 | 4.78 | 4.69 | 5.07 | 5.24 | 5.31 | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | ||||||
| GE Aerospace | 3.10 | 3.02 | 2.89 | 2.87 | 2.88 | 2.72 | 2.85 | 3.07 | 4.08 | 5.01 | 2.99 | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | ||||||
| Honeywell International Inc. | 5.83 | 3.78 | 3.94 | 3.74 | 3.25 | 3.31 | 3.52 | 3.46 | 3.56 | 3.60 | 3.57 | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | ||||||
| Lockheed Martin Corp. | 13.95 | 13.82 | 14.39 | 18.58 | 17.57 | 18.06 | 16.89 | 28.85 | 19.48 | 19.07 | 17.38 | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | ||||||
| RTX Corp. | 4.25 | 4.38 | 4.51 | 4.46 | 4.72 | 4.98 | 4.89 | 5.07 | 5.40 | 5.54 | 5.60 | 5.31 | 5.37 | 5.54 | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Payables turnover
= (Cost of products soldQ3 2026
+ Cost of products soldQ2 2026
+ Cost of products soldQ1 2026
+ Cost of products soldQ4 2025)
÷ Accounts payable
= (5,842 + 5,676 + 4,799 + 4,457)
÷ 5,911 = 3.51
2 Click competitor name to see calculations.
The operational data reveals a systemic decrease in the payables turnover ratio from March 2022 through September 2026. This overall trend indicates a transition toward a more extended payment cycle for supplier obligations, as the rate of increase in accounts payable outpaced the growth in the cost of products sold.
- Cost of Products Sold Dynamics
- An upward trend is observed in the cost of products sold, which increased from 3,269 million US$ in March 2022 to 5,842 million US$ by September 2026. The growth remained relatively steady until early 2026, where a substantial surge occurred between March and June of that year, rising from 4,799 million US$ to 5,676 million US$.
- Accounts Payable Trajectory
- Accounts payable rose from 2,867 million US$ in March 2022 to 5,911 million US$ in September 2026. While the increase was gradual for the first few years, it became significantly more pronounced starting in March 2026, coinciding with the escalation in product costs and resulting in higher outstanding obligations to suppliers.
- Payables Turnover Ratio Analysis
- The turnover ratio declined from 4.67 in March 2022 to 3.51 in September 2026. The ratio remained relatively stable between 4.40 and 4.60 throughout 2022 and 2023, followed by a gradual decline through 2024 and 2025. A sharp contraction is observed in 2026, with the ratio falling from 4.11 in December 2025 to 3.51 by September 2026. This decline signifies a lengthening of the average payment period, suggesting a strategic shift toward utilizing supplier credit to support expanded operational scale.
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Working Capital Turnover
Eaton Corp. plc, working capital turnover calculation (quarterly data)
| Sep 30, 2026 | 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) | |||||||||||||||||||||||||
| Current assets | 16,031) | 14,772) | 14,005) | 12,355) | 12,131) | 11,897) | 12,434) | 11,801) | 12,152) | 12,652) | 11,853) | 11,675) | 10,983) | 10,303) | 9,138) | 8,746) | 8,540) | 8,687) | 8,194) | ||||||
| Less: Current liabilities | 12,991) | 11,909) | 11,741) | 9,370) | 9,474) | 9,594) | 9,522) | 7,857) | 7,941) | 8,120) | 7,613) | 7,747) | 7,563) | 6,725) | 6,087) | 6,360) | 6,653) | 8,974) | 8,256) | ||||||
| Working capital | 3,040) | 2,863) | 2,264) | 2,985) | 2,657) | 2,303) | 2,912) | 3,944) | 4,211) | 4,532) | 4,240) | 3,928) | 3,420) | 3,578) | 3,051) | 2,386) | 1,887) | (287) | (62) | ||||||
| Net sales | 8,947) | 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) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | 10.52 | 10.49 | 12.60 | 9.20 | 10.02 | 11.29 | 8.69 | 6.31 | 5.84 | 5.33 | 5.58 | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 6.20 | 6.24 | 4.96 | 4.40 | 4.29 | 3.15 | 2.89 | 2.15 | 6.04 | 4.13 | 5.76 | 5.78 | 5.46 | 4.80 | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | ||||||
| Caterpillar Inc. | — | 4.84 | 5.30 | 4.02 | 4.42 | 5.04 | 5.73 | 4.58 | 4.89 | 6.61 | 5.64 | 5.23 | 4.27 | 5.29 | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | ||||||
| GE Aerospace | — | — | 134.54 | 26.19 | 14.05 | 28.44 | 13.68 | 10.83 | 9.60 | 11.15 | 6.93 | 7.24 | 8.11 | 5.70 | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | ||||||
| Honeywell International Inc. | — | 7.79 | 4.43 | 5.37 | 4.66 | 6.00 | 6.87 | 5.79 | 4.39 | 8.63 | 3.37 | 7.39 | 5.98 | 5.16 | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | ||||||
| Lockheed Martin Corp. | 12.25 | 16.77 | 25.12 | 37.02 | 24.76 | — | 44.49 | 29.25 | 13.20 | 15.88 | 13.24 | 18.85 | 11.04 | 10.56 | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | ||||||
| RTX Corp. | 33.43 | 140.18 | 63.20 | 57.24 | 22.14 | 257.23 | 279.93 | — | — | — | 23.64 | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Working capital turnover
= (Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025)
÷ Working capital
= (8,947 + 8,531 + 7,451 + 7,055)
÷ 3,040 = 10.52
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a dynamic relationship between net sales growth and working capital management over the observed period. While net sales exhibited a consistent upward trajectory, working capital experienced significant fluctuations, leading to a cyclical pattern in the working capital turnover ratio.
- Working Capital Trends
- The period began with negative working capital in early 2022, which transitioned into a phase of rapid accumulation. Working capital grew from negative 287 million USD in June 2022 to a peak of 4,532 million USD by June 2024. Following this peak, a contraction occurred, with levels declining to 2,303 million USD by June 2025, before stabilizing between 2,264 million USD and 3,040 million USD through September 2026.
- Net Sales Trajectory
- Net sales demonstrated steady and sustained growth throughout the entire duration. Revenue increased from 4,843 million USD in March 2022 to 8,947 million USD by September 2026. A notable acceleration in sales growth is observed in the first half of 2026, where monthly figures jumped from 7,451 million USD in March to 8,531 million USD in June.
- Working Capital Turnover Analysis
- The working capital turnover ratio underwent three distinct phases. First, a period of decline occurred between September 2022 and June 2024, where the ratio dropped from 10.69 to a low of 5.33. This decline indicates that working capital was expanding at a faster rate than net sales, suggesting a period of heavy investment in current assets or a decrease in operational efficiency. Second, a sharp recovery phase began in March 2025, with the ratio climbing to a peak of 12.60 by March 2026. This suggests a significant improvement in efficiency, characterized by higher sales generation per unit of working capital. Finally, the ratio stabilized at approximately 10.52 by September 2026, indicating a normalized balance between asset utilization and revenue generation.
Overall, the data indicates a transition from a phase of aggressive working capital expansion to one of optimization. The increase in the turnover ratio during 2025 and 2026, coinciding with accelerated sales growth and reduced working capital requirements, reflects an enhanced ability to support higher revenue volumes with a leaner current asset base.
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Average Inventory Processing Period
Eaton Corp. plc, average inventory processing period calculation (quarterly data)
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Inventory turnover | 3.50 | 3.55 | 3.50 | 3.63 | 3.57 | 3.51 | 3.55 | 3.64 | 3.66 | 3.81 | 3.85 | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average inventory processing period1 | 104 | 103 | 104 | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 386 | 360 | 363 | 363 | 377 | 424 | 459 | 466 | 428 | 470 | 443 | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | ||||||
| Caterpillar Inc. | — | 153 | 152 | 148 | 166 | 169 | 165 | 153 | 155 | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | ||||||
| GE Aerospace | 137 | 139 | 146 | 150 | 156 | 160 | 156 | 147 | 111 | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | ||||||
| Honeywell International Inc. | 36 | 97 | 98 | 95 | 109 | 109 | 102 | 99 | 98 | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | ||||||
| Lockheed Martin Corp. | 21 | 24 | 23 | 19 | 20 | 20 | 20 | 20 | 19 | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | ||||||
| RTX Corp. | 72 | 71 | 72 | 69 | 73 | 77 | 76 | 71 | 77 | 79 | 77 | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.50 = 104
2 Click competitor name to see calculations.
An analysis of the operating activity ratios indicates a gradual decline in inventory management efficiency over the observed period from March 2022 through September 2026. A consistent inverse correlation is evident between inventory turnover and the average inventory processing period, reflecting a slowing rate of inventory conversion into sales.
- Inventory Turnover
- The inventory turnover ratio remained relatively stable throughout 2022 and 2023, fluctuating within a narrow range between 3.87 and 4.04. However, starting in the first quarter of 2024, a sustained downward trend emerged. The ratio decreased from 3.85 in March 2024 to a low of 3.50 by September 2026. This decline suggests a reduction in the frequency with which the company's inventory is sold and replaced over the reporting period.
- Average Inventory Processing Period
- The average inventory processing period mirrored the trend seen in turnover, exhibiting an upward trajectory. For the first eight quarters, the period remained stable, oscillating between 90 and 94 days. Beginning in March 2024, the duration extended beyond 95 days, eventually peaking at 104 days in March and September 2026. This increase indicates that inventory is remaining in stock for a longer duration before being converted into revenue.
- Operational Implications
- The transition from a 90-day processing cycle in early 2022 to a 104-day cycle by late 2026 represents a measurable slowdown in operational velocity. The steady increase in the processing period, coupled with the diminishing turnover ratio, points toward potential increases in carrying costs or a shift in demand patterns that has resulted in slower inventory movement.
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Average Receivable Collection Period
Eaton Corp. plc, average receivable collection period calculation (quarterly data)
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Receivables turnover | 4.47 | 4.50 | 4.48 | 5.10 | 4.79 | 4.74 | 4.97 | 5.39 | 5.04 | 4.97 | 5.06 | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average receivable collection period1 | 82 | 81 | 81 | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 16 | 14 | 14 | 12 | 15 | 15 | 17 | 14 | 14 | 16 | 14 | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | ||||||
| Caterpillar Inc. | — | 68 | 62 | 62 | 61 | 59 | 56 | 55 | 53 | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | ||||||
| GE Aerospace | 104 | 95 | 101 | 102 | 97 | 101 | 98 | 97 | 75 | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | ||||||
| Honeywell International Inc. | 55 | 80 | 78 | 74 | 86 | 85 | 79 | 74 | 76 | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | ||||||
| Lockheed Martin Corp. | 14 | 16 | 11 | 19 | 19 | 17 | 10 | 12 | 11 | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | ||||||
| RTX Corp. | 56 | 54 | 52 | 61 | 54 | 54 | 51 | 50 | 47 | 52 | 53 | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.47 = 82
2 Click competitor name to see calculations.
The analysis of operating activity ratios reveals a period of relative stability in receivable management followed by a measurable deterioration in collection efficiency beginning in 2025. While the company maintained consistent collection cycles for the first three years, the latter portion of the period shows a trend toward slower cash conversion.
- Receivables Turnover Trends
- Between March 2022 and December 2024, the receivables turnover ratio remained relatively stable, fluctuating within a narrow range between 4.97 and 5.39. However, a sustained downward trend emerged starting in March 2025, with the ratio declining to 4.74 in June 2025 and reaching a low of 4.47 by September 2026. This decline indicates a reduction in the frequency with which the company collects its average receivables balance over the specified periods.
- Average Receivable Collection Period
- The average collection period exhibited minimal volatility from March 2022 through December 2024, generally oscillating between 68 and 73 days. A shift in the collection trajectory is observed in June 2025, where the period increased to 77 days. This upward trend persisted into 2026, with the collection period rising to 81 days in March and peaking at 82 days by September 2026. This represents a notable extension of the time required to convert credit sales into cash.
- Operational Correlation and Insights
- A direct inverse correlation exists between the receivables turnover and the average collection period. The stability observed in the initial years suggests a consistent credit policy and predictable customer payment behavior. The subsequent increase in the collection period to 82 days, coupled with the drop in turnover to 4.47, suggests an expansion of the cash conversion cycle. This trend may point to a strategic loosening of credit terms to drive sales or an increase in the delinquency of customer payments during the 2025-2026 period.
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Operating Cycle
Eaton Corp. plc, operating cycle calculation (quarterly data)
No. days
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Average inventory processing period | 104 | 103 | 104 | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | ||||||
| Average receivable collection period | 82 | 81 | 81 | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Operating cycle1 | 186 | 184 | 185 | 173 | 178 | 181 | 176 | 168 | 172 | 169 | 167 | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 402 | 374 | 377 | 375 | 392 | 439 | 476 | 480 | 442 | 486 | 457 | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | ||||||
| Caterpillar Inc. | — | 221 | 214 | 210 | 227 | 228 | 221 | 208 | 208 | 206 | 199 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | ||||||
| GE Aerospace | 241 | 234 | 247 | 252 | 253 | 261 | 254 | 244 | 186 | 149 | 234 | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | ||||||
| Honeywell International Inc. | 91 | 177 | 176 | 169 | 195 | 194 | 181 | 173 | 174 | 175 | 174 | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | ||||||
| Lockheed Martin Corp. | 35 | 40 | 34 | 38 | 39 | 37 | 30 | 32 | 30 | 33 | 32 | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | ||||||
| RTX Corp. | 128 | 125 | 124 | 130 | 127 | 131 | 127 | 121 | 124 | 131 | 130 | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 104 + 82 = 186
2 Click competitor name to see calculations.
The operating cycle exhibits a consistent upward trend over the analyzed period, expanding from 158 days in March 2022 to 186 days by September 2026. This overall increase indicates a lengthening of the time required to convert investments in inventory back into cash, reflecting a decrease in overall short-term operational efficiency.
- Average Inventory Processing Period
- Inventory processing times remained relatively stable between 90 and 94 days throughout 2022 and 2023. However, a gradual increase began in early 2024, with the period rising from 95 days in March 2024 to a peak of 104 days in June 2025 and September 2026. This upward trajectory suggests a slowing of inventory turnover, which may be attributed to increased stockpiling, slower sales velocity, or disruptions in the supply chain.
- Average Receivable Collection Period
- The collection of receivables remained largely consistent between 68 and 73 days from March 2022 through December 2023. A period of relative stability continued into 2024, though a notable shift occurred in 2025 and 2026. Collection times climbed to 77 days by June 2025 and reached a high of 82 days by September 2026. This extension suggests a decline in the efficiency of credit collections or a strategic shift toward more lenient payment terms for customers.
- Operating Cycle
- The total operating cycle reflects the cumulative effect of both inventory and receivable delays. The cycle experienced moderate fluctuations in 2022 and 2023, hovering between 158 and 166 days. Starting in 2024, the cycle entered a sustained growth phase, surpassing 180 days in mid-2025 and concluding at 186 days. The 28-day expansion of the operating cycle over the total period indicates an increasing requirement for working capital to fund daily operations.
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Average Payables Payment Period
Eaton Corp. plc, average payables payment period calculation (quarterly data)
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Payables turnover | 3.51 | 3.55 | 3.67 | 4.11 | 4.31 | 4.27 | 4.26 | 4.18 | 4.24 | 4.31 | 4.38 | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | 104 | 103 | 100 | 89 | 85 | 85 | 86 | 87 | 86 | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 65 | 58 | 57 | 56 | 54 | 54 | 57 | 61 | 63 | 65 | 62 | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | ||||||
| Caterpillar Inc. | — | 77 | 75 | 73 | 76 | 78 | 72 | 70 | 69 | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | ||||||
| GE Aerospace | 118 | 121 | 126 | 127 | 127 | 134 | 128 | 119 | 89 | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | ||||||
| Honeywell International Inc. | 63 | 97 | 93 | 98 | 112 | 110 | 104 | 105 | 103 | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | ||||||
| Lockheed Martin Corp. | 26 | 26 | 25 | 20 | 21 | 20 | 22 | 13 | 19 | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | ||||||
| RTX Corp. | 86 | 83 | 81 | 82 | 77 | 73 | 75 | 72 | 68 | 66 | 65 | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.51 = 104
2 Click competitor name to see calculations.
Analysis of the short-term operating activity ratios reveals a consistent elongation of the payables cycle over the observed period, characterized by a steady decline in turnover and a corresponding increase in the time required to settle supplier obligations.
- Payables Turnover Trends
- A sustained downward trajectory is observed in the payables turnover ratio, which decreased from 4.67 in March 2022 to 3.51 by September 2026. This decline indicates that accounts payable are being cycled less frequently, suggesting a slower rate of payment to creditors over the multi-year period.
- Average Payables Payment Period Progression
- The average payables payment period demonstrates a gradual increase from 78 days in March 2022 to 89 days by December 2025. During this initial phase, the growth was incremental, with the period generally fluctuating between 78 and 87 days, signaling a moderate expansion of the credit window utilized by the organization.
- Accelerated Extension of Payment Terms
- A significant acceleration in the payment period is evident during the first three quarters of 2026. The duration jumped from 89 days in December 2025 to 100 days in March 2026, continuing upward to reach 104 days by September 2026. This sharp increase represents a notable shift in operating activity, resulting in a substantially longer timeframe for the settlement of short-term liabilities compared to the preceding years.
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Cash Conversion Cycle
Eaton Corp. plc, cash conversion cycle calculation (quarterly data)
No. days
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Average inventory processing period | 104 | 103 | 104 | 101 | 102 | 104 | 103 | 100 | 100 | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | ||||||
| Average receivable collection period | 82 | 81 | 81 | 72 | 76 | 77 | 73 | 68 | 72 | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | ||||||
| Average payables payment period | 104 | 103 | 100 | 89 | 85 | 85 | 86 | 87 | 86 | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Cash conversion cycle1 | 82 | 81 | 85 | 84 | 93 | 96 | 90 | 81 | 86 | 84 | 84 | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | 337 | 316 | 320 | 319 | 338 | 385 | 419 | 419 | 379 | 421 | 395 | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | ||||||
| Caterpillar Inc. | — | 144 | 139 | 137 | 151 | 150 | 149 | 138 | 139 | 139 | 132 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | ||||||
| GE Aerospace | 123 | 113 | 121 | 125 | 126 | 127 | 126 | 125 | 97 | 76 | 112 | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | ||||||
| Honeywell International Inc. | 28 | 80 | 83 | 71 | 83 | 84 | 77 | 68 | 71 | 74 | 72 | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | ||||||
| Lockheed Martin Corp. | 9 | 14 | 9 | 18 | 18 | 17 | 8 | 19 | 11 | 14 | 11 | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | ||||||
| RTX Corp. | 42 | 42 | 43 | 48 | 50 | 58 | 52 | 49 | 56 | 65 | 65 | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 104 + 82 – 104 = 82
2 Click competitor name to see calculations.
The overall cash conversion cycle exhibits moderate volatility throughout the analyzed period, fluctuating between a minimum of 79 days and a peak of 96 days. While there is a general upward trend in the time required to process inventory and collect receivables, these increases have been substantially mitigated by a concurrent extension of the payables payment period, which has prevented a prolonged expansion of the total cash cycle.
- Average Inventory Processing Period
- A consistent upward trend is observed in inventory holding times. Starting at 90 days in March 2022, the period remained relatively stable through 2023 before climbing to 100 days by September 2024. The period peaked at 104 days in June 2025 and remained elevated at 104 days by September 2026, indicating a slowdown in inventory turnover or a strategic increase in safety stock levels.
- Average Receivable Collection Period
- The collection period remained largely range-bound between 68 and 73 days from March 2022 through December 2024, suggesting stable credit management. However, a distinct upward shift occurred starting in March 2026, with the period increasing to 81 days and eventually reaching 82 days by September 2026, reflecting a slower conversion of accounts receivable into cash.
- Average Payables Payment Period
- A steady and significant increase in the payment period is evident, rising from 78 days in March 2022 to 104 days by September 2026. This trend accelerates notably in the final three quarters of the data set, moving from 89 days in December 2025 to 104 days. This indicates a strategic shift toward utilizing supplier credit to finance operational requirements.
- Cash Conversion Cycle Dynamics
- The cash conversion cycle peaked at 96 days in June 2025, driven primarily by the culmination of increasing inventory days and collection periods. However, the cycle contracted to 82 days by September 2026. This reduction occurred despite the inventory and receivable periods remaining at historical highs, demonstrating that the aggressive extension of the payables payment period effectively neutralized the operational inefficiencies or strategic stockpiling seen in other areas of the working capital cycle.
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