Eaton (BSP:E1TN34) ROCE %

: 14.71% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Eaton's annualized ROCE % for the quarter that ended in Dec. 2023 was 14.71%.

Eaton ROCE % Historical Data

The historical data trend for Eaton's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Eaton Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

10.69

7.89

12.06

10.61

12.97

Eaton Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																12.71	11.14	12.20	15.01	14.71

Eaton ROCE % Calculation

Eaton's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	19491.404	/	( ( (183662.436 - 33360.744)	+	(188309.114 - 37958.751) )	/ 2 )
	=	19491.404	/	( (150301.692	+	150350.363)	/ 2 )
	=	19491.404	/	150326.0275
	=	12.97 %

Eaton's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	21853.108	/	( ( (184159.184 - 37351.388)	+	(188309.114 - 37958.751) )	/ 2 )
	=	21853.108	/	( ( 146807.796	+	150350.363 )	/ 2 )
	=	21853.108	/	148579.0795
	=	14.71 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Eaton (BSP:E1TN34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Eaton ROCE % Related Terms

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Eaton (BSP:E1TN34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Eaton Corp PLC (BSP:E1TN34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ETN:USA ETN1:Mexico 3EC:Germany

Address

30 Pembroke Road, Eaton House, Dublin, IRL, D04 Y0C2

Website

https://www.eaton.com

Eaton is a diversified power management company operating for over 100 years. The company operates through various segments, including electrical Americas, electrical global, aerospace, vehicle, and eMobility. Eaton's portfolio can broadly be divided into two halves. One part of its portfolio is housed under its industrial sector umbrella, which serves a large variety of end markets like commercial vehicles, general aviation, and trucks. The other portion is Eaton's electrical sector portfolio, which serves data centers, utilities, and the residential end market, among others. While the company receives favorable tax treatment with its Ireland domicile, most of its operations are in the U.S.

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