Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Eaton Corp. plc, profitability ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Return on Sales
Gross profit margin 38.20% 36.36% 33.19% 32.28% 30.52%
Operating profit margin 18.62% 16.75% 14.55% 15.69% 11.45%
Net profit margin 15.25% 13.87% 11.86% 10.92% 7.90%
Return on Investment
Return on equity (ROE) 20.52% 16.90% 14.45% 13.06% 9.44%
Return on assets (ROA) 9.89% 8.37% 7.03% 6.30% 4.43%

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).

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 2022 to 2023 and from 2023 to 2024.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Eaton Corp. plc operating profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Eaton Corp. plc net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

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

Gross Profit Margin

Eaton Corp. plc, gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Gross profit 9,503 8,434 6,887 6,335 5,450
Net sales 24,878 23,196 20,752 19,628 17,858
Profitability Ratio
Gross profit margin1 38.20% 36.36% 33.19% 32.28% 30.52%
Benchmarks
Gross Profit Margin, Competitors2
Boeing Co. -2.99% 9.93% 5.26% 4.84% -9.78%
Caterpillar Inc. 34.49% 33.04% 26.91% 26.30% 25.47%
GE Aerospace 30.79% 21.95% 24.55% 24.19% 17.26%
Honeywell International Inc. 38.09% 37.28% 36.99% 35.85% 32.07%
Lockheed Martin Corp. 9.75% 12.55% 12.56% 13.52% 13.23%
RTX Corp. 19.09% 17.54% 20.38% 19.40% 15.08%

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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 9,503 ÷ 24,878 = 38.20%

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 2022 to 2023 and from 2023 to 2024.

Operating Profit Margin

Eaton Corp. plc, operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Operating income 4,632 3,885 3,019 3,080 2,045
Net sales 24,878 23,196 20,752 19,628 17,858
Profitability Ratio
Operating profit margin1 18.62% 16.75% 14.55% 15.69% 11.45%
Benchmarks
Operating Profit Margin, Competitors2
Boeing Co. -16.10% -0.99% -5.33% -4.66% -21.95%
Caterpillar Inc. 21.30% 20.30% 13.97% 14.27% 11.67%
GE Aerospace 23.29% 8.49% 6.05% 8.58% 5.49%
Honeywell International Inc. 19.33% 19.32% 18.12% 18.03% 17.45%
Lockheed Martin Corp. 9.87% 12.59% 12.65% 13.61% 13.22%
RTX Corp. 8.10% 5.17% 8.07% 7.70% -3.34%
Operating Profit Margin, Sector
Capital Goods 9.56% 10.11% 8.29% 9.11% 3.00%
Operating Profit Margin, Industry
Industrials 9.94% 9.90% 9.06% 9.24% 3.13%

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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 4,632 ÷ 24,878 = 18.62%

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 improved from 2022 to 2023 and from 2023 to 2024.

Net Profit Margin

Eaton Corp. plc, net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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%
Benchmarks
Net Profit Margin, Competitors2
Boeing Co. -17.77% -2.86% -7.41% -6.75% -20.42%
Caterpillar Inc. 17.59% 16.18% 11.85% 13.47% 7.68%
GE Aerospace 18.67% 14.68% 0.31% -9.17% 7.81%
Honeywell International Inc. 14.82% 15.43% 14.00% 16.11% 14.64%
Lockheed Martin Corp. 7.51% 10.24% 8.69% 9.42% 10.45%
RTX Corp. 5.91% 4.64% 7.75% 6.00% -6.22%
Net Profit Margin, Sector
Capital Goods 6.65% 9.09% 5.27% 3.71% 1.85%
Net Profit Margin, Industry
Industrials 8.06% 8.32% 5.04% 5.85% 0.09%

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).

1 2024 Calculation
Net profit margin = 100 × Net income attributable to Eaton ordinary shareholders ÷ Net sales
= 100 × 3,794 ÷ 24,878 = 15.25%

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 2022 to 2023 and from 2023 to 2024.

Return on Equity (ROE)

Eaton Corp. plc, ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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%
Benchmarks
ROE, Competitors2
Boeing Co.
Caterpillar Inc. 55.37% 53.02% 42.25% 39.37% 19.56%
GE Aerospace 33.90% 34.63% 0.62% -16.17% 16.04%
Honeywell International Inc. 30.64% 35.68% 29.74% 29.85% 27.23%
Lockheed Martin Corp. 84.26% 101.24% 61.86% 57.62% 113.60%
RTX Corp. 7.94% 5.34% 7.16% 5.29% -4.88%
ROE, Sector
Capital Goods 18.15% 27.89% 13.39% 8.48% 4.42%
ROE, Industry
Industrials 23.51% 27.70% 15.38% 15.38% 0.24%

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

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 2022 to 2023 and from 2023 to 2024.

Return on Assets (ROA)

Eaton Corp. plc, ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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%
Benchmarks
ROA, Competitors2
Boeing Co. -7.56% -1.62% -3.60% -3.03% -7.80%
Caterpillar Inc. 12.30% 11.81% 8.18% 7.84% 3.83%
GE Aerospace 5.32% 5.81% 0.12% -3.28% 2.25%
Honeywell International Inc. 7.59% 9.20% 7.97% 8.60% 7.40%
Lockheed Martin Corp. 9.59% 13.19% 10.84% 12.41% 13.47%
RTX Corp. 2.93% 1.97% 3.27% 2.39% -2.17%
ROA, Sector
Capital Goods 3.59% 5.21% 2.84% 1.86% 0.80%
ROA, Industry
Industrials 5.24% 5.61% 3.31% 3.40% 0.04%

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

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 2022 to 2023 and from 2023 to 2024.