Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Eaton Corp. plc, profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Eaton Corp. plc gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Eaton Corp. plc operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Eaton Corp. plc net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Eaton Corp. plc ROE improved from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Eaton Corp. plc ROA improved from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Eaton Corp. plc, gross profit margin 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) | ||||||
| Gross profit | 8,434) | 6,887) | 6,335) | 5,450) | 7,052) | |
| Net sales | 23,196) | 20,752) | 19,628) | 17,858) | 21,390) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 36.36% | 33.19% | 32.28% | 30.52% | 32.97% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | 9.93% | 5.26% | 4.84% | -9.78% | 5.83% | |
| Caterpillar Inc. | 33.04% | 26.91% | 26.30% | 25.47% | 27.83% | |
| GE Aerospace | 21.95% | 24.55% | 24.19% | 17.26% | 23.52% | |
| Honeywell International Inc. | 37.28% | 36.99% | 35.85% | 32.07% | 33.70% | |
| Lockheed Martin Corp. | 12.55% | 12.56% | 13.52% | 13.23% | 13.99% | |
| RTX Corp. | 17.54% | 20.38% | 19.40% | 15.08% | 25.93% | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 8,434 ÷ 23,196 = 36.36%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Eaton Corp. plc gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Eaton Corp. plc, operating profit margin 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) | ||||||
| Operating income | 3,885) | 3,019) | 3,080) | 2,045) | 2,863) | |
| Net sales | 23,196) | 20,752) | 19,628) | 17,858) | 21,390) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 16.75% | 14.55% | 15.69% | 11.45% | 13.38% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | -0.99% | -5.33% | -4.66% | -21.95% | -2.58% | |
| Caterpillar Inc. | 20.30% | 13.97% | 14.27% | 11.67% | 16.33% | |
| GE Aerospace | 8.49% | 6.05% | 8.58% | 5.49% | 12.84% | |
| Honeywell International Inc. | 19.32% | 18.12% | 18.03% | 17.45% | 18.66% | |
| Lockheed Martin Corp. | 12.59% | 12.65% | 13.61% | 13.22% | 14.29% | |
| RTX Corp. | 5.17% | 8.07% | 7.70% | -3.34% | 11.64% | |
| Operating Profit Margin, Sector | ||||||
| Capital Goods | 10.11% | 8.29% | 9.11% | 3.00% | 10.93% | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 10.07% | 9.34% | 9.80% | 4.43% | 9.67% | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 3,885 ÷ 23,196 = 16.75%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Eaton Corp. plc operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Net Profit Margin
Eaton Corp. plc, net profit margin 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 income attributable to Eaton ordinary shareholders | 3,218) | 2,462) | 2,144) | 1,410) | 2,211) | |
| Net sales | 23,196) | 20,752) | 19,628) | 17,858) | 21,390) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 13.87% | 11.86% | 10.92% | 7.90% | 10.34% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | -2.86% | -7.41% | -6.75% | -20.42% | -0.83% | |
| Caterpillar Inc. | 16.18% | 11.85% | 13.47% | 7.68% | 12.00% | |
| GE Aerospace | 14.68% | 0.31% | -9.17% | 7.81% | -5.69% | |
| Honeywell International Inc. | 15.43% | 14.00% | 16.11% | 14.64% | 16.73% | |
| Lockheed Martin Corp. | 10.24% | 8.69% | 9.42% | 10.45% | 10.42% | |
| RTX Corp. | 4.64% | 7.75% | 6.00% | -6.22% | 7.19% | |
| Net Profit Margin, Sector | ||||||
| Capital Goods | 9.09% | 5.27% | 3.71% | 1.85% | 5.03% | |
| Net Profit Margin, Industry | ||||||
| Industrials | 8.61% | 5.27% | 6.43% | 1.43% | 3.90% | |
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 profit margin = 100 × Net income attributable to Eaton ordinary shareholders ÷ Net sales
= 100 × 3,218 ÷ 23,196 = 13.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Eaton Corp. plc net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Eaton Corp. plc, ROE 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 income attributable to Eaton ordinary shareholders | 3,218) | 2,462) | 2,144) | 1,410) | 2,211) | |
| Total Eaton shareholders’ equity | 19,036) | 17,038) | 16,413) | 14,930) | 16,082) | |
| Profitability Ratio | ||||||
| ROE1 | 16.90% | 14.45% | 13.06% | 9.44% | 13.75% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 53.02% | 42.25% | 39.37% | 19.56% | 41.77% | |
| GE Aerospace | 34.63% | 0.62% | -16.17% | 16.04% | -17.58% | |
| Honeywell International Inc. | 35.68% | 29.74% | 29.85% | 27.23% | 33.22% | |
| Lockheed Martin Corp. | 101.24% | 61.86% | 57.62% | 113.60% | 199.23% | |
| RTX Corp. | 5.34% | 7.16% | 5.29% | -4.88% | 13.25% | |
| ROE, Sector | ||||||
| Capital Goods | 27.89% | 13.39% | 8.48% | 4.42% | 18.11% | |
| ROE, Industry | ||||||
| Industrials | 27.68% | 15.53% | 16.58% | 3.94% | 13.76% | |
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
ROE = 100 × Net income attributable to Eaton ordinary shareholders ÷ Total Eaton shareholders’ equity
= 100 × 3,218 ÷ 19,036 = 16.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Eaton Corp. plc ROE improved from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
Eaton Corp. plc, ROA 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 income attributable to Eaton ordinary shareholders | 3,218) | 2,462) | 2,144) | 1,410) | 2,211) | |
| Total assets | 38,432) | 35,014) | 34,027) | 31,824) | 32,805) | |
| Profitability Ratio | ||||||
| ROA1 | 8.37% | 7.03% | 6.30% | 4.43% | 6.74% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | -1.62% | -3.60% | -3.03% | -7.80% | -0.48% | |
| Caterpillar Inc. | 11.81% | 8.18% | 7.84% | 3.83% | 7.77% | |
| GE Aerospace | 5.81% | 0.12% | -3.28% | 2.25% | -1.87% | |
| Honeywell International Inc. | 9.20% | 7.97% | 8.60% | 7.40% | 10.47% | |
| Lockheed Martin Corp. | 13.19% | 10.84% | 12.41% | 13.47% | 13.11% | |
| RTX Corp. | 1.97% | 3.27% | 2.39% | -2.17% | 3.96% | |
| ROA, Sector | ||||||
| Capital Goods | 5.21% | 2.84% | 1.86% | 0.80% | 2.72% | |
| ROA, Industry | ||||||
| Industrials | 5.75% | 3.46% | 3.83% | 0.74% | 2.39% | |
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
ROA = 100 × Net income attributable to Eaton ordinary shareholders ÷ Total assets
= 100 × 3,218 ÷ 38,432 = 8.37%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Eaton Corp. plc ROA improved from 2021 to 2022 and from 2022 to 2023. |