Stock Analysis on Net

Eaton Corp. plc (NYSE:ETN)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Eaton Corp. plc, short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 3.64 3.95 4.04 4.48 5.88
Receivables turnover 5.39 5.18 5.09 5.95 6.15
Payables turnover 4.18 4.39 4.51 4.75 6.24
Working capital turnover 6.31 5.91 8.70 65.65 5.42
Average No. Days
Average inventory processing period 100 92 90 82 62
Add: Average receivable collection period 68 70 72 61 59
Operating cycle 168 162 162 143 121
Less: Average payables payment period 87 83 81 77 58
Cash conversion cycle 81 79 81 66 63

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Eaton Corp. plc inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Eaton Corp. plc receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Eaton Corp. plc payables turnover ratio decreased from 2022 to 2023 and from 2023 to 2024.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Eaton Corp. plc working capital turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Eaton Corp. plc number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Eaton Corp. plc number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Eaton Corp. plc number of days of payables outstanding increased from 2022 to 2023 and from 2023 to 2024.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

Eaton Corp. plc, inventory turnover 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)
Cost of products sold 15,375 14,762 13,865 13,293 12,408
Inventory 4,227 3,739 3,430 2,969 2,109
Short-term Activity Ratio
Inventory turnover1 3.64 3.95 4.04 4.48 5.88
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.78 0.88 0.81 0.75 0.78
Caterpillar Inc. 2.39 2.58 2.54 2.53 2.55
GE Aerospace 2.49 3.05 3.19 3.40 3.80
Honeywell International Inc. 3.70 3.72 4.04 4.29 4.94
Lockheed Martin Corp. 18.46 18.87 18.68 19.45 16.01
RTX Corp. 5.12 4.83 5.03 5.65 5.11
Inventory Turnover, Sector
Capital Goods 2.14 2.30 2.28 2.28 2.28
Inventory Turnover, Industry
Industrials 4.06 4.23 4.28 4.03 3.71

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
Inventory turnover = Cost of products sold ÷ Inventory
= 15,375 ÷ 4,227 = 3.64

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Eaton Corp. plc inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Receivables Turnover

Eaton Corp. plc, receivables turnover 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 sales 24,878 23,196 20,752 19,628 17,858
Accounts receivable, net 4,619 4,475 4,076 3,297 2,904
Short-term Activity Ratio
Receivables turnover1 5.39 5.18 5.09 5.95 6.15
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 25.28 29.37 26.46 23.58 29.75
Caterpillar Inc. 6.61 6.86 6.39 5.68 5.33
GE Aerospace 3.77 4.17 4.09 4.55 4.37
Honeywell International Inc. 4.92 4.87 4.77 5.04 4.78
Lockheed Martin Corp. 30.22 31.69 26.34 34.15 33.06
RTX Corp. 7.36 6.36 7.36 6.66 6.11
Receivables Turnover, Sector
Capital Goods 8.05 7.68 7.36 7.57 7.30
Receivables Turnover, Industry
Industrials 9.05 8.61 8.17 7.76 7.57

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).

1 2024 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= 24,878 ÷ 4,619 = 5.39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Eaton Corp. plc receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Payables Turnover

Eaton Corp. plc, payables turnover 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)
Cost of products sold 15,375 14,762 13,865 13,293 12,408
Accounts payable 3,678 3,365 3,072 2,797 1,987
Short-term Activity Ratio
Payables turnover1 4.18 4.39 4.51 4.75 6.24
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 6.03 5.86 6.18 6.40 4.94
Caterpillar Inc. 5.24 5.41 4.76 4.36 4.75
GE Aerospace 3.07 3.27 2.98 3.32 3.67
Honeywell International Inc. 3.46 3.36 3.53 3.40 3.86
Lockheed Martin Corp. 28.85 25.56 27.25 74.34 64.48
RTX Corp. 5.07 5.31 5.40 5.93 5.56
Payables Turnover, Sector
Capital Goods 5.73 5.42 5.21 5.60 5.54
Payables Turnover, Industry
Industrials 8.65 8.07 7.83 7.81 7.49

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
Payables turnover = Cost of products sold ÷ Accounts payable
= 15,375 ÷ 3,678 = 4.18

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Eaton Corp. plc payables turnover ratio decreased from 2022 to 2023 and from 2023 to 2024.

Working Capital Turnover

Eaton Corp. plc, working capital turnover 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)
Current assets 11,801 11,675 8,746 7,511 9,178
Less: Current liabilities 7,857 7,747 6,360 7,212 5,881
Working capital 3,944 3,928 2,386 299 3,297
 
Net sales 24,878 23,196 20,752 19,628 17,858
Short-term Activity Ratio
Working capital turnover1 6.31 5.91 8.70 65.65 5.42
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 2.15 5.78 3.42 2.34 1.69
Caterpillar Inc. 4.58 5.23 4.62 3.54 2.84
GE Aerospace 10.83 7.24 7.93 4.94 2.26
Honeywell International Inc. 5.79 7.39 7.03 5.86 3.64
Lockheed Martin Corp. 29.25 18.85 12.93 11.52 12.01
RTX Corp. 41.62 20.15 9.75 7.52
Working Capital Turnover, Sector
Capital Goods 6.28 8.26 6.79 5.01 3.24
Working Capital Turnover, Industry
Industrials 10.82 13.27 10.34 6.90 4.52

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
Working capital turnover = Net sales ÷ Working capital
= 24,878 ÷ 3,944 = 6.31

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Eaton Corp. plc working capital turnover ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Average Inventory Processing Period

Eaton Corp. plc, average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 3.64 3.95 4.04 4.48 5.88
Short-term Activity Ratio (no. days)
Average inventory processing period1 100 92 90 82 62
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 466 415 452 486 467
Caterpillar Inc. 153 141 144 144 143
GE Aerospace 147 120 114 107 96
Honeywell International Inc. 99 98 90 85 74
Lockheed Martin Corp. 20 19 20 19 23
RTX Corp. 71 76 73 65 71
Average Inventory Processing Period, Sector
Capital Goods 171 159 160 160 160
Average Inventory Processing Period, Industry
Industrials 90 86 85 91 99

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.64 = 100

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Eaton Corp. plc number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024.

Average Receivable Collection Period

Eaton Corp. plc, average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 5.39 5.18 5.09 5.95 6.15
Short-term Activity Ratio (no. days)
Average receivable collection period1 68 70 72 61 59
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 14 12 14 15 12
Caterpillar Inc. 55 53 57 64 68
GE Aerospace 97 87 89 80 83
Honeywell International Inc. 74 75 77 72 76
Lockheed Martin Corp. 12 12 14 11 11
RTX Corp. 50 57 50 55 60
Average Receivable Collection Period, Sector
Capital Goods 45 48 50 48 50
Average Receivable Collection Period, Industry
Industrials 40 42 45 47 48

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.39 = 68

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Eaton Corp. plc number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024.

Operating Cycle

Eaton Corp. plc, operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 100 92 90 82 62
Average receivable collection period 68 70 72 61 59
Short-term Activity Ratio
Operating cycle1 168 162 162 143 121
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 480 427 466 501 479
Caterpillar Inc. 208 194 201 208 211
GE Aerospace 244 207 203 187 179
Honeywell International Inc. 173 173 167 157 150
Lockheed Martin Corp. 32 31 34 30 34
RTX Corp. 121 133 123 120 131
Operating Cycle, Sector
Capital Goods 216 207 210 208 210
Operating Cycle, Industry
Industrials 130 128 130 138 147

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 cycle = Average inventory processing period + Average receivable collection period
= 100 + 68 = 168

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

Eaton Corp. plc, average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 4.18 4.39 4.51 4.75 6.24
Short-term Activity Ratio (no. days)
Average payables payment period1 87 83 81 77 58
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 61 62 59 57 74
Caterpillar Inc. 70 67 77 84 77
GE Aerospace 119 112 123 110 100
Honeywell International Inc. 105 109 103 107 95
Lockheed Martin Corp. 13 14 13 5 6
RTX Corp. 72 69 68 62 66
Average Payables Payment Period, Sector
Capital Goods 64 67 70 65 66
Average Payables Payment Period, Industry
Industrials 42 45 47 47 49

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.18 = 87

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Eaton Corp. plc number of days of payables outstanding increased from 2022 to 2023 and from 2023 to 2024.

Cash Conversion Cycle

Eaton Corp. plc, cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 100 92 90 82 62
Average receivable collection period 68 70 72 61 59
Average payables payment period 87 83 81 77 58
Short-term Activity Ratio
Cash conversion cycle1 81 79 81 66 63
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 419 365 407 444 405
Caterpillar Inc. 138 127 124 124 134
GE Aerospace 125 95 80 77 79
Honeywell International Inc. 68 64 64 50 55
Lockheed Martin Corp. 19 17 21 25 28
RTX Corp. 49 64 55 58 65
Cash Conversion Cycle, Sector
Capital Goods 152 140 140 143 144
Cash Conversion Cycle, Industry
Industrials 88 83 83 91 98

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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 100 + 6887 = 81

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.