Stock Analysis on Net
Stock Analysis on Net

Ecolab Inc. (NYSE:ECL)

This company has been moved to the archive! The financial data has not been updated since February 25, 2022.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Ecolab Inc., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Goodwill 8,063,900 6,006,900 7,251,700 7,078,000 7,167,100
Trade names 1,230,000 1,230,000 1,230,000 1,230,000 1,230,000
Intangible assets not subject to amortization 1,230,000 1,230,000 1,230,000 1,230,000 1,230,000
Customer relationships 3,444,600 2,530,900 3,742,100 3,649,300 3,620,300
Trademarks 561,100 348,000 409,900 384,900 380,600
Patents 496,300 492,500 479,400 470,200 462,700
Other technology 527,200 240,100 297,200 242,800 232,600
Intangible assets subject to amortization 5,029,200 3,611,500 4,928,600 4,747,200 4,696,200
Accumulated amortization (2,035,100) (1,864,500) (2,486,100) (2,179,500) (1,908,600)
Net intangible assets subject to amortization 2,994,100 1,747,000 2,442,500 2,567,700 2,787,600
Other intangible assets, net 4,224,100 2,977,000 3,672,500 3,797,700 4,017,600
Goodwill and other intangible assets, net 12,288,000 8,983,900 10,924,200 10,875,700 11,184,700

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Ecolab Inc. goodwill decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Other intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Ecolab Inc. other intangible assets, net decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Goodwill and other intangible assets, net Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Ecolab Inc. goodwill and other intangible assets, net decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjustments to Financial Statements: Removal of Goodwill

Ecolab Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 21,206,400 18,126,000 20,869,100 20,074,500 19,962,400
Less: Goodwill 8,063,900 6,006,900 7,251,700 7,078,000 7,167,100
Total assets (adjusted) 13,142,500 12,119,100 13,617,400 12,996,500 12,795,300
Adjustment to Total Ecolab Shareholders’ Equity
Total Ecolab shareholders’ equity (as reported) 7,224,200 6,166,500 8,685,300 8,003,200 7,618,500
Less: Goodwill 8,063,900 6,006,900 7,251,700 7,078,000 7,167,100
Total Ecolab shareholders’ equity (adjusted) (839,700) 159,600 1,433,600 925,200 451,400

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Ecolab Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Ecolab Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Asset Turnover
Reported total asset turnover 0.60 0.65 0.71 0.73 0.69
Adjusted total asset turnover 0.97 0.97 1.09 1.13 1.08
Financial Leverage
Reported financial leverage 2.94 2.94 2.40 2.51 2.62
Adjusted financial leverage — 75.93 9.50 14.05 28.35
Return on Equity (ROE)
Reported ROE 15.64% -19.54% 17.95% 17.86% 19.80%
Adjusted ROE — -755.08% 108.74% 154.46% 334.16%
Return on Assets (ROA)
Reported ROA 5.33% -6.65% 7.47% 7.12% 7.56%
Adjusted ROA 8.60% -9.94% 11.45% 11.00% 11.79%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Ecolab Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Ecolab Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Ecolab Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales 12,733,100 11,790,200 14,906,300 14,668,200 13,838,300
Total assets 21,206,400 18,126,000 20,869,100 20,074,500 19,962,400
Activity Ratio
Total asset turnover1 0.60 0.65 0.71 0.73 0.69
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales 12,733,100 11,790,200 14,906,300 14,668,200 13,838,300
Adjusted total assets 13,142,500 12,119,100 13,617,400 12,996,500 12,795,300
Activity Ratio
Adjusted total asset turnover2 0.97 0.97 1.09 1.13 1.08

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 12,733,100 ÷ 21,206,400 = 0.60

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 12,733,100 ÷ 13,142,500 = 0.97

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Ecolab Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets 21,206,400 18,126,000 20,869,100 20,074,500 19,962,400
Total Ecolab shareholders’ equity 7,224,200 6,166,500 8,685,300 8,003,200 7,618,500
Solvency Ratio
Financial leverage1 2.94 2.94 2.40 2.51 2.62
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 13,142,500 12,119,100 13,617,400 12,996,500 12,795,300
Adjusted total Ecolab shareholders’ equity (839,700) 159,600 1,433,600 925,200 451,400
Solvency Ratio
Adjusted financial leverage2 — 75.93 9.50 14.05 28.35

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Ecolab shareholders’ equity
= 21,206,400 ÷ 7,224,200 = 2.94

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Ecolab shareholders’ equity
= 13,142,500 ÷ -839,700 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Ecolab 1,129,900 (1,205,100) 1,558,900 1,429,100 1,508,400
Total Ecolab shareholders’ equity 7,224,200 6,166,500 8,685,300 8,003,200 7,618,500
Profitability Ratio
ROE1 15.64% -19.54% 17.95% 17.86% 19.80%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Ecolab 1,129,900 (1,205,100) 1,558,900 1,429,100 1,508,400
Adjusted total Ecolab shareholders’ equity (839,700) 159,600 1,433,600 925,200 451,400
Profitability Ratio
Adjusted ROE2 — -755.08% 108.74% 154.46% 334.16%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income (loss) attributable to Ecolab ÷ Total Ecolab shareholders’ equity
= 100 × 1,129,900 ÷ 7,224,200 = 15.64%

2 Adjusted ROE = 100 × Net income (loss) attributable to Ecolab ÷ Adjusted total Ecolab shareholders’ equity
= 100 × 1,129,900 ÷ -839,700 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Ecolab 1,129,900 (1,205,100) 1,558,900 1,429,100 1,508,400
Total assets 21,206,400 18,126,000 20,869,100 20,074,500 19,962,400
Profitability Ratio
ROA1 5.33% -6.65% 7.47% 7.12% 7.56%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Ecolab 1,129,900 (1,205,100) 1,558,900 1,429,100 1,508,400
Adjusted total assets 13,142,500 12,119,100 13,617,400 12,996,500 12,795,300
Profitability Ratio
Adjusted ROA2 8.60% -9.94% 11.45% 11.00% 11.79%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income (loss) attributable to Ecolab ÷ Total assets
= 100 × 1,129,900 ÷ 21,206,400 = 5.33%

2 Adjusted ROA = 100 × Net income (loss) attributable to Ecolab ÷ Adjusted total assets
= 100 × 1,129,900 ÷ 13,142,500 = 8.60%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Ecolab Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.