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EatonWBO:ETN 90 Current Ratio is 1.24 as of Jun. 2026. GuruFocus rates WBO:ETN with a GF Score™ of 90/100. Among 3,091 Industrial Products companies, Eaton ranks worse than 81.46% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Eaton's current ratio for the quarter that ended in Jun. 2026 was 1.24.
Eaton has a current ratio of 1.24. It generally indicates good short-term financial strength.
The historical rank and industry rank for Eaton's Current Ratio or its related term are showing as below:
WBO:ETN's Current Ratio is not ranked *
in the Industrial Products industry.
Industry Median: 1.92 * Ranked among companies with meaningful Current Ratio only.
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Eaton Current Ratio Related Terms
Eaton Current Ratio Historical Data
* Premium members only.
The historical data trend for Eaton's Current Ratio 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.
For the Specialty Industrial Machinery subindustry, Eaton's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eaton Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's Current Ratio distribution charts can be found below:
* The bar in red indicates where Eaton's Current Ratio falls into.
* 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.
Eaton (WBO:ETN) has a Current Ratio of 1.24 as of Jun. 2026. According to the industry distribution chart, Eaton ranks #2518 out of 3091 companies in the Industrial Products industry, placing it in the top 81.5%.
Is Eaton's Current Ratio too high?
Eaton's current Current Ratio is 1.24. The Industrial Products industry median Current Ratio is 1.92. Eaton's value of 1.24 is 35.4% below this industry median. Based on the distribution chart, Eaton ranks #2518 out of 3091 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Eaton has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Eaton's Current Ratio compare to ?
According to the Industrial Products industry distribution chart, Eaton ranks #2518 out of 3091 companies for Current Ratio. This places Eaton in the lower half of its industry. The industry median Current Ratio is 1.92. Eaton's value of 1.24 is 35.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.92, based on 3,091 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eaton's current Current Ratio of 1.24 is 35.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median Current Ratio is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eaton's current Current Ratio is 1.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eaton stock overvalued right now?
Eaton (WBO:ETN) has a current Current Ratio of 1.24. The current Current Ratio is 1.24 and 35.4% below the Industrial Products industry median of 1.92. Eaton's overall GF Score™ is 90/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Eaton (WBO:ETN), the current Current Ratio is 1.24 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton's portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
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