Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Eaton Corp. plc, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Ireland	128)	42)	3)	50)	15)
Foreign	794)	744)	570)	730)	441)
Current income tax expense	922)	786)	573)	780)	456)
Ireland	(16)	1)	13)	(2)	—)
Foreign	(138)	(183)	(141)	(28)	(125)
Deferred income tax benefit	(154)	(182)	(128)	(30)	(125)
Income tax expense	768)	604)	445)	750)	331)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Current income tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Eaton Corp. plc current income tax expense increased from 2022 to 2023 and from 2023 to 2024.
Deferred income tax benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Eaton Corp. plc deferred income tax benefit decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Eaton Corp. plc income tax expense increased from 2022 to 2023 and from 2023 to 2024.

Eaton Corp. plc, effective income tax rate (EITR) reconciliation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Income taxes at the applicable statutory rate	25.00%	25.00%	25.00%	25.00%	25.00%
Ireland tax on trading income	-0.90%	-1.30%	-1.30%	-0.70%	-0.20%
Nondeductible interest expense	0.90%	2.60%	1.00%	0.60%	2.70%
Ireland Other, net	1.20%	-0.20%	-0.50%	-0.20%	0.40%
Ireland operations	1.20%	1.10%	-0.80%	-0.30%	2.90%
Tax impact on sale of businesses	0.00%	0.00%	0.00%	9.10%	3.90%
Earnings taxed at other than the applicable statutory tax rate	-6.70%	-9.90%	-10.20%	-8.00%	-14.00%
Other items	-0.20%	2.20%	1.60%	-0.10%	1.60%
Foreign operations	-6.90%	-7.70%	-8.60%	1.00%	-8.50%
Adjustments to tax liabilities	0.10%	-0.20%	-0.40%	0.20%	-0.60%
Adjustments to valuation allowances	-2.60%	-2.40%	0.10%	0.00%	0.20%
Worldwide operations	-2.50%	-2.60%	-0.30%	0.20%	-0.40%
Effective income tax expense rate	16.80%	15.80%	15.30%	25.90%	19.00%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Effective income tax expense rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Eaton Corp. plc effective income tax expense rate increased from 2022 to 2023 and from 2023 to 2024.

Eaton Corp. plc, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Employee benefits	295)	328)	266)	348)	553)
Depreciation and amortization	(791)	(929)	(1,067)	(1,087)	(1,101)
Other accruals and adjustments	460)	408)	397)	385)	505)
Accruals and other adjustments	(36)	(193)	(404)	(354)	(43)
Ireland income tax loss carryforwards	1)	2)	1)	1)	1)
Foreign income tax loss carryforwards	3,673)	3,878)	4,151)	3,127)	1,815)
Foreign income tax credit carryforwards	252)	247)	280)	263)	309)
Valuation allowance for income tax loss and income tax credit carryforwards	(3,556)	(3,828)	(4,184)	(3,139)	(1,863)
Other valuation allowances	—)	(50)	(44)	(65)	(67)
Deferred income taxes	334)	56)	(200)	(167)	152)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred income taxes	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Eaton Corp. plc deferred income taxes increased from 2022 to 2023 and from 2023 to 2024.

Eaton Corp. plc, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred income taxes, noncurrent assets	609)	458)	330)	392)	426)
	Deferred income taxes, noncurrent liabilities	275)	402)	530)	559)	277)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred income taxes, noncurrent assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Eaton Corp. plc deferred income taxes, noncurrent assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred income taxes, noncurrent liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Eaton Corp. plc deferred income taxes, noncurrent liabilities decreased from 2022 to 2023 and from 2023 to 2024.

Eaton Corp. plc, adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	38,381)	38,432)	35,014)	34,027)	31,824)
Less: Noncurrent deferred tax assets, net	609)	458)	330)	392)	426)
Total assets (adjusted)	37,772)	37,974)	34,684)	33,635)	31,398)
Adjustment to Total Liabilities
Total liabilities (as reported)	19,851)	19,363)	17,940)	17,576)	16,851)
Less: Noncurrent deferred tax liabilities, net	275)	402)	530)	559)	277)
Total liabilities (adjusted)	19,576)	18,961)	17,410)	17,017)	16,574)
Adjustment to Total Eaton Shareholders’ Equity
Total Eaton shareholders’ equity (as reported)	18,488)	19,036)	17,038)	16,413)	14,930)
Less: Net deferred tax assets (liabilities)	334)	56)	(200)	(167)	152)
Total Eaton shareholders’ equity (adjusted)	18,154)	18,980)	17,238)	16,580)	14,778)
Adjustment to Net Income Attributable To Eaton Ordinary Shareholders
Net income attributable to Eaton ordinary shareholders (as reported)	3,794)	3,218)	2,462)	2,144)	1,410)
Add: Deferred income tax expense (benefit)	(154)	(182)	(128)	(30)	(125)
Net income attributable to Eaton ordinary shareholders (adjusted)	3,640)	3,036)	2,334)	2,114)	1,285)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Eaton Corp. plc, Financial Data: Reported vs. Adjusted

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Eaton Corp. plc, adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	15.25%	13.87%	11.86%	10.92%	7.90%
Adjusted net profit margin	14.63%	13.09%	11.25%	10.77%	7.20%
Total Asset Turnover
Reported total asset turnover	0.65	0.60	0.59	0.58	0.56
Adjusted total asset turnover	0.66	0.61	0.60	0.58	0.57
Financial Leverage
Reported financial leverage	2.08	2.02	2.06	2.07	2.13
Adjusted financial leverage	2.08	2.00	2.01	2.03	2.12
Return on Equity (ROE)
Reported ROE	20.52%	16.90%	14.45%	13.06%	9.44%
Adjusted ROE	20.05%	16.00%	13.54%	12.75%	8.70%
Return on Assets (ROA)
Reported ROA	9.89%	8.37%	7.03%	6.30%	4.43%
Adjusted ROA	9.64%	7.99%	6.73%	6.29%	4.09%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Eaton Corp. plc adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Eaton Corp. plc adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Eaton Corp. plc adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Eaton Corp. plc adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Eaton Corp. plc adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Eaton Corp. plc, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Eaton ordinary shareholders	3,794)	3,218)	2,462)	2,144)	1,410)
Net sales	24,878)	23,196)	20,752)	19,628)	17,858)
Profitability Ratio
Net profit margin¹	15.25%	13.87%	11.86%	10.92%	7.90%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Eaton ordinary shareholders	3,640)	3,036)	2,334)	2,114)	1,285)
Net sales	24,878)	23,196)	20,752)	19,628)	17,858)
Profitability Ratio
Adjusted net profit margin²	14.63%	13.09%	11.25%	10.77%	7.20%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Net profit margin = 100 × Net income attributable to Eaton ordinary shareholders ÷ Net sales
= 100 × 3,794 ÷ 24,878 = 15.25%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Eaton ordinary shareholders ÷ Net sales
= 100 × 3,640 ÷ 24,878 = 14.63%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Eaton Corp. plc adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales	24,878)	23,196)	20,752)	19,628)	17,858)
Total assets	38,381)	38,432)	35,014)	34,027)	31,824)
Activity Ratio
Total asset turnover¹	0.65	0.60	0.59	0.58	0.56
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	24,878)	23,196)	20,752)	19,628)	17,858)
Adjusted total assets	37,772)	37,974)	34,684)	33,635)	31,398)
Activity Ratio
Adjusted total asset turnover²	0.66	0.61	0.60	0.58	0.57

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 24,878 ÷ 38,381 = 0.65

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 24,878 ÷ 37,772 = 0.66

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Eaton Corp. plc adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	38,381)	38,432)	35,014)	34,027)	31,824)
Total Eaton shareholders’ equity	18,488)	19,036)	17,038)	16,413)	14,930)
Solvency Ratio
Financial leverage¹	2.08	2.02	2.06	2.07	2.13
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	37,772)	37,974)	34,684)	33,635)	31,398)
Adjusted total Eaton shareholders’ equity	18,154)	18,980)	17,238)	16,580)	14,778)
Solvency Ratio
Adjusted financial leverage²	2.08	2.00	2.01	2.03	2.12

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Total Eaton shareholders’ equity
= 38,381 ÷ 18,488 = 2.08

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Eaton shareholders’ equity
= 37,772 ÷ 18,154 = 2.08

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Eaton Corp. plc adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Eaton ordinary shareholders	3,794)	3,218)	2,462)	2,144)	1,410)
Total Eaton shareholders’ equity	18,488)	19,036)	17,038)	16,413)	14,930)
Profitability Ratio
ROE¹	20.52%	16.90%	14.45%	13.06%	9.44%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Eaton ordinary shareholders	3,640)	3,036)	2,334)	2,114)	1,285)
Adjusted total Eaton shareholders’ equity	18,154)	18,980)	17,238)	16,580)	14,778)
Profitability Ratio
Adjusted ROE²	20.05%	16.00%	13.54%	12.75%	8.70%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net income attributable to Eaton ordinary shareholders ÷ Total Eaton shareholders’ equity
= 100 × 3,794 ÷ 18,488 = 20.52%

² Adjusted ROE = 100 × Adjusted net income attributable to Eaton ordinary shareholders ÷ Adjusted total Eaton shareholders’ equity
= 100 × 3,640 ÷ 18,154 = 20.05%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Eaton Corp. plc adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Eaton ordinary shareholders	3,794)	3,218)	2,462)	2,144)	1,410)
Total assets	38,381)	38,432)	35,014)	34,027)	31,824)
Profitability Ratio
ROA¹	9.89%	8.37%	7.03%	6.30%	4.43%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Eaton ordinary shareholders	3,640)	3,036)	2,334)	2,114)	1,285)
Adjusted total assets	37,772)	37,974)	34,684)	33,635)	31,398)
Profitability Ratio
Adjusted ROA²	9.64%	7.99%	6.73%	6.29%	4.09%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net income attributable to Eaton ordinary shareholders ÷ Total assets
= 100 × 3,794 ÷ 38,381 = 9.89%

² Adjusted ROA = 100 × Adjusted net income attributable to Eaton ordinary shareholders ÷ Adjusted total assets
= 100 × 3,640 ÷ 37,772 = 9.64%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Eaton Corp. plc adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Eaton Corp. plc (NYSE:ETN)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Eaton Corp. plc, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Eaton Corp. plc, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)