Eaton (MEX:ETN1) ROCE % : 16.10% (As of Dec. 2024)

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What is Eaton ROCE %?

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. 2024 was 16.10%.

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 ROCE % Chart

Eaton Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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7.26

11.70

10.74

12.51

16.92

Eaton Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															14.58	13.24	16.52	16.34	16.10

Eaton ROCE % Calculation

Eaton's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	97938.367	/	( ( (652354.299 - 131499.499)	+	(800462.621 - 163863.235) )	/ 2 )
	=	97938.367	/	( (520854.8	+	636599.386)	/ 2 )
	=	97938.367	/	578727.093
	=	16.92 %

Eaton's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	100858.164	/	( ( (772568.611 - 156360.672)	+	(800462.621 - 163863.235) )	/ 2 )
	=	100858.164	/	( ( 616207.939	+	636599.386 )	/ 2 )
	=	100858.164	/	626403.6625
	=	16.10 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Eaton (MEX:ETN1) 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 Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Eaton Corp PLC (MEX:ETN1) » Definitions » ROCE %

Comparable Companies

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ETN:USA 0Y3K:UK 3EC:Germany 3EC:Germany E1TN34:Brazil

Address

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

Website

https://www.eaton.com

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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