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Eaton's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was $1,031 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was $4,198 Mil.
EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Eaton's annualized ROC % for the quarter that ended in Mar. 2024 was 10.12%. Eaton's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 60.67%.
EBIT is also linked to Joel Greenblatt's definition of earnings yield. Eaton's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 2.92%.
The historical data trend for Eaton's EBIT 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.
Eaton Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
EBIT | Get a 7-Day Free Trial | 2,790.00 | 1,895.00 | 3,040.00 | 3,055.00 | 3,978.00 |
Eaton Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
EBIT | Get a 7-Day Free Trial | 812.00 | 940.00 | 1,112.00 | 1,115.00 | 1,031.00 |
For the Specialty Industrial Machinery subindustry, Eaton's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.
For the Industrial Products industry and Industrials sector, Eaton's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Eaton's EV-to-EBIT falls into.
EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.
EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,198 Mil.
* 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 (NYSE:ETN) EBIT Explanation
1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.
Eaton's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:
ROC % (Q: Mar. 2024 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Dec. 2023 ) | + | Invested Capital (Q: Mar. 2024 )) | / count ) |
= | 4016 * ( 1 - 17.88% ) | / | ( (32458 | + | 32693) | / 2 ) |
= | 3297.9392 | / | 32575.5 | |||
= | 10.12 % |
where
Invested Capital | (Q: Dec. 2023 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 38432 | - | 3365 | - | ( 2609 | - | max(0, 7747 | - | 11675 | + | 2609 | )) |
= | 32458 |
Invested Capital | (Q: Mar. 2024 ) | |||||||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | Excess Cash | |||||||
= | Total Assets | - | Accounts Payable & Accrued Expense | - | ( Cash, Cash Equivalents, Marketable Securities | - | max(0, Total Current Liabilities | - | Total Current Assets | + | Cash, Cash Equivalents, Marketable Securities | )) |
= | 38535 | - | 3400 | - | ( 2442 | - | max(0, 7613 | - | 11853 | + | 2442 | )) |
= | 32693 |
Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.
2. Joel Greenblatt's definition of Return on Capital:
Eaton's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:
ROC (Joel Greenblatt) % | (Q: Mar. 2024 ) | ||||||
= | EBIT | / | Average of (Net fixed Assets | + | Net Working Capital) | ||
= | EBIT | / | Average of (Property, Plant and Equipment | + | Net Working Capital) | ||
Q: Dec. 2023 | Q: Mar. 2024 | ||||||
= | EBIT | / | ( ( (Property, Plant and Equipment + Net Working Capital) | + | (Property, Plant and Equipment + Net Working Capital) ) | / | count ) |
= | 4124 | / | ( ( (4178 + max(2344, 0)) | + | (4280 + max(2793, 0)) ) | / | 2 ) |
= | 4124 | / | ( ( 6522 | + | 7073 ) | / | 2 ) |
= | 4124 | / | 6797.5 | ||||
= | 60.67 % |
where Working Capital is:
Working Capital | (Q: Dec. 2023 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (4475 | + | 3739 | + | 852) | - | (3365 | + | 0 | + | 3357) |
= | 2344 |
Working Capital | (Q: Mar. 2024 ) | ||||||||||
= | (Accounts Receivable | + | Total Inventories | + | Other Current Assets) | - | (Accounts Payable & Accrued Expense | + | Defer. Rev. | + | Other Current Liabilities) |
= | (4674 | + | 3868 | + | 869) | - | (3400 | + | 0 | + | 3218) |
= | 2793 |
When net working capital is negative, 0 is used.
Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.
3. It is also linked to Joel Greenblatt's definition of Earnings Yield:
Eaton's Earnings Yield (Joel Greenblatt) % for today is calculated as:
Earnings Yield (Joel Greenblatt) % | = | EBIT (TTM) | / | Enterprise Value (Q: Mar. 2024 ) |
= | 4198 | / | 143665.212 | |
= | 2.92 % |
* 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.
Thank you for viewing the detailed overview of Eaton's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.
Sternadt Paulo Ruiz | officer: See remarks below | 1000 EATON BLVD., CLEVELAND OH 44122 |
Thomas B Okray | officer: See Remarks below. | 5008 AIRPORT ROAD NW, ROANOKE VA 24012 |
Szmagala Taras G. Jr. | officer: See remarks below | C/O EATON CORPORATION PLC, 1000 EATON BOULEVARD, CLEVELAND OH 44122 |
Craig Arnold | director, officer: See Remarks below. | EATON CENTER, 1111 SUPERIOR AVENUE, CLEVELAND OH 44114 |
Peter Denk | officer: See remarks below | C/O EATON CORPORATION PLC, 1000 EATON BLVD., CLEVELAND OH 44122 |
Heath B. Monesmith | officer: See Remarks below. | 600 TRAVIS, SUITE 5600, HOUSTON TX 77002 |
Nandakumar Cheruvatath | officer: See Remarks below | 1000EATON BLVD., CLEVELAND OH 44122 |
Michael Yelton | officer: See remarks below | C/O EATON CORPORATION PLC, 1000 EATON BLVD., CLEVELAND OH 44122 |
Joao V Faria | officer: See Remarks below. | 1000 EATON BLVD., CLEVELAND OH 44122 |
Brian S Brickhouse | officer: See Remarks below. | 1000 EATON BLVD., CLEVELAND OH 44122 |
Daniel Roy Hopgood | officer: See Remarks below. | 2135 WEST MAPLE ROAD, TROY MI 48084-7186 |
Deborah L Mccoy | director | CONTINENTAL AIRLINES INC., 1600 SMITH ST. HQS FL, HOUSTON TX 77002 |
Boise April Miller | officer: See Remarks below. | C/O INTEL CORPORATION, 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054 |
Christopher M Connor | director | THE SHERWIN WILLIAMS CO, 101 W. PROSPECT AVENUE, CLEVELAND OH 44115-1027 |
Dorothy C Thompson | director | 1000 EATON BLVD., CLEVELAND OH 44122 |
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