Analysis of Long-term (Investment) Activity Ratios
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
Based on: 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), 10-K (reporting date: 2019-12-31).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Eaton Corp. plc net fixed asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Eaton Corp. plc net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Eaton Corp. plc total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Eaton Corp. plc equity turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover
Eaton Corp. plc, net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 23,196) | 20,752) | 19,628) | 17,858) | 21,390) | |
| Net property, plant and equipment | 3,530) | 3,147) | 3,064) | 2,964) | 3,496) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 6.57 | 6.59 | 6.41 | 6.02 | 6.12 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 7.30 | 6.31 | 5.70 | 4.92 | 6.12 | |
| Caterpillar Inc. | 5.04 | 4.70 | 3.99 | 3.15 | 3.93 | |
| GE Aerospace | 6.06 | 5.96 | 5.47 | 1.75 | 2.02 | |
| Honeywell International Inc. | 6.48 | 6.48 | 6.18 | 5.86 | 6.89 | |
| Lockheed Martin Corp. | 8.07 | 8.27 | 8.83 | 9.07 | 9.07 | |
| RTX Corp. | 4.38 | 4.42 | 4.30 | 3.78 | 6.04 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | 5.98 | 5.79 | 5.46 | 3.55 | 4.23 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 3.16 | 3.22 | 3.04 | 2.41 | 2.76 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover = Net sales ÷ Net property, plant and equipment
= 23,196 ÷ 3,530 = 6.57
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Eaton Corp. plc net fixed asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
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, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 23,196) | 20,752) | 19,628) | 17,858) | 21,390) | |
| Net property, plant and equipment | 3,530) | 3,147) | 3,064) | 2,964) | 3,496) | |
| Operating lease assets | 648) | 570) | 442) | 428) | 436) | |
| Net property, plant and equipment (including operating lease, right-of-use asset) | 4,178) | 3,717) | 3,506) | 3,392) | 3,932) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 5.55 | 5.58 | 5.60 | 5.26 | 5.44 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 6.30 | 5.55 | 5.04 | 4.45 | 5.59 | |
| Caterpillar Inc. | 4.83 | 4.49 | 3.79 | 3.00 | 3.75 | |
| GE Aerospace | 5.17 | 5.08 | 4.55 | 1.63 | 1.89 | |
| Honeywell International Inc. | 5.50 | 5.58 | 5.28 | 5.15 | 6.12 | |
| Lockheed Martin Corp. | 7.14 | 7.27 | 7.54 | 7.96 | 7.88 | |
| RTX Corp. | 3.96 | 3.95 | 3.80 | 3.36 | 5.02 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | 5.31 | 5.13 | 4.80 | 3.25 | 3.86 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.72 | 2.77 | 2.62 | 2.13 | 2.57 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= 23,196 ÷ 4,178 = 5.55
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Eaton Corp. plc net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
Eaton Corp. plc, total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 23,196) | 20,752) | 19,628) | 17,858) | 21,390) | |
| Total assets | 38,432) | 35,014) | 34,027) | 31,824) | 32,805) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.60 | 0.59 | 0.58 | 0.56 | 0.65 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.57 | 0.49 | 0.45 | 0.38 | 0.57 | |
| Caterpillar Inc. | 0.73 | 0.69 | 0.58 | 0.50 | 0.65 | |
| GE Aerospace | 0.40 | 0.39 | 0.36 | 0.29 | 0.33 | |
| Honeywell International Inc. | 0.60 | 0.57 | 0.53 | 0.51 | 0.63 | |
| Lockheed Martin Corp. | 1.29 | 1.25 | 1.32 | 1.29 | 1.26 | |
| RTX Corp. | 0.43 | 0.42 | 0.40 | 0.35 | 0.55 | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | 0.57 | 0.54 | 0.50 | 0.43 | 0.54 | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.67 | 0.66 | 0.60 | 0.51 | 0.61 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 23,196 ÷ 38,432 = 0.60
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Eaton Corp. plc total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Equity Turnover
Eaton Corp. plc, equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | 23,196) | 20,752) | 19,628) | 17,858) | 21,390) | |
| Total Eaton shareholders’ equity | 19,036) | 17,038) | 16,413) | 14,930) | 16,082) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.22 | 1.22 | 1.20 | 1.20 | 1.33 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 3.28 | 3.57 | 2.92 | 2.55 | 3.48 | |
| GE Aerospace | 2.36 | 2.02 | 1.76 | 2.05 | 3.09 | |
| Honeywell International Inc. | 2.31 | 2.12 | 1.85 | 1.86 | 1.98 | |
| Lockheed Martin Corp. | 9.89 | 7.12 | 6.12 | 10.87 | 19.13 | |
| RTX Corp. | 1.15 | 0.92 | 0.88 | 0.78 | 1.84 | |
| Equity Turnover, Sector | ||||||
| Capital Goods | 3.07 | 2.54 | 2.28 | 2.39 | 3.60 | |
| Equity Turnover, Industry | ||||||
| Industrials | 3.22 | 2.94 | 2.58 | 2.75 | 3.53 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Equity turnover = Net sales ÷ Total Eaton shareholders’ equity
= 23,196 ÷ 19,036 = 1.22
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Eaton Corp. plc equity turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |