10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Eaton's 10-Year ROIIC % for the quarter that ended in Dec. 2023 was 178.84%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Eaton's 10-Year ROIIC % or its related term are showing as below:
ETN's 10-Year ROIIC % is ranked better than 98.18% of 2697
companies
in the Industrial Products industry
Industry Median: 5.35
vs ETN: 178.84
Eaton 10-Year ROIIC % Historical Data
The historical data trend for Eaton's 10-Year ROIIC % 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 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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's 10-Year ROIIC % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Eaton's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Eaton's 10-Year ROIIC % falls into.
Eaton 10-Year ROIIC % Calculation
Eaton's 10-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 3271.947 (Dec. 2023) - 2134.5474 (Dec. 2013) )
/
( 32458 (Dec. 2023) - 31822 (Dec. 2013) )
=
1137.3996
/
636
=
178.84%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Eaton (NYSE:ETN) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Eaton 10-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Eaton's 10-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
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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