Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Eaton Corp. plc, liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.50 | 1.51 | 1.38 | 1.04 | 1.56 | |
| Quick ratio | 0.85 | 0.91 | 0.73 | 0.54 | 0.68 | |
| Cash ratio | 0.26 | 0.34 | 0.09 | 0.08 | 0.19 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Eaton Corp. plc current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Eaton Corp. plc quick ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Eaton Corp. plc cash ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Current Ratio
Eaton Corp. plc, current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 11,801) | 11,675) | 8,746) | 7,511) | 9,178) | |
| Current liabilities | 7,857) | 7,747) | 6,360) | 7,212) | 5,881) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.50 | 1.51 | 1.38 | 1.04 | 1.56 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Boeing Co. | 1.32 | 1.14 | 1.22 | 1.33 | 1.39 | |
| Caterpillar Inc. | 1.42 | 1.35 | 1.39 | 1.46 | 1.53 | |
| GE Aerospace | 1.09 | 1.18 | 1.16 | 1.28 | 1.58 | |
| Honeywell International Inc. | 1.31 | 1.27 | 1.25 | 1.30 | 1.47 | |
| Lockheed Martin Corp. | 1.13 | 1.21 | 1.32 | 1.42 | 1.39 | |
| RTX Corp. | 0.99 | 1.04 | 1.09 | 1.19 | 1.21 | |
| Current Ratio, Sector | ||||||
| Capital Goods | 1.23 | 1.18 | 1.22 | 1.31 | 1.43 | |
| Current Ratio, Industry | ||||||
| Industrials | 1.19 | 1.16 | 1.20 | 1.29 | 1.41 | |
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).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,801 ÷ 7,857 = 1.50
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Eaton Corp. plc current ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Quick Ratio
Eaton Corp. plc, quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash | 555) | 488) | 294) | 297) | 438) | |
| Short-term investments | 1,525) | 2,121) | 261) | 271) | 664) | |
| Accounts receivable, net | 4,619) | 4,475) | 4,076) | 3,297) | 2,904) | |
| Total quick assets | 6,699) | 7,084) | 4,631) | 3,865) | 4,006) | |
| Current liabilities | 7,857) | 7,747) | 6,360) | 7,212) | 5,881) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.85 | 0.91 | 0.73 | 0.54 | 0.68 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Boeing Co. | 0.39 | 0.28 | 0.32 | 0.34 | 0.41 | |
| Caterpillar Inc. | 0.80 | 0.74 | 0.79 | 0.89 | 1.02 | |
| GE Aerospace | 0.78 | 0.78 | 0.81 | 0.93 | 1.27 | |
| Honeywell International Inc. | 0.88 | 0.84 | 0.88 | 0.94 | 1.15 | |
| Lockheed Martin Corp. | 0.92 | 0.99 | 1.09 | 1.15 | 1.05 | |
| RTX Corp. | 0.60 | 0.63 | 0.69 | 0.81 | 0.78 | |
| Quick Ratio, Sector | ||||||
| Capital Goods | 0.62 | 0.60 | 0.64 | 0.71 | 0.83 | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.69 | 0.66 | 0.72 | 0.80 | 0.87 | |
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).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,699 ÷ 7,857 = 0.85
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Eaton Corp. plc quick ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Cash Ratio
Eaton Corp. plc, cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash | 555) | 488) | 294) | 297) | 438) | |
| Short-term investments | 1,525) | 2,121) | 261) | 271) | 664) | |
| Total cash assets | 2,080) | 2,609) | 555) | 568) | 1,102) | |
| Current liabilities | 7,857) | 7,747) | 6,360) | 7,212) | 5,881) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.26 | 0.34 | 0.09 | 0.08 | 0.19 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Boeing Co. | 0.27 | 0.17 | 0.19 | 0.20 | 0.29 | |
| Caterpillar Inc. | 0.21 | 0.20 | 0.22 | 0.31 | 0.36 | |
| GE Aerospace | 0.42 | 0.45 | 0.44 | 0.54 | 0.78 | |
| Honeywell International Inc. | 0.52 | 0.44 | 0.51 | 0.59 | 0.79 | |
| Lockheed Martin Corp. | 0.13 | 0.09 | 0.16 | 0.26 | 0.23 | |
| RTX Corp. | 0.11 | 0.14 | 0.16 | 0.22 | 0.25 | |
| Cash Ratio, Sector | ||||||
| Capital Goods | 0.26 | 0.24 | 0.26 | 0.32 | 0.44 | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.31 | 0.29 | 0.32 | 0.39 | 0.47 | |
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).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,080 ÷ 7,857 = 0.26
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Eaton Corp. plc cash ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |