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 Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Ecolab Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. federal and state 30,900 (43,900) 135,400 103,500 241,800
International 240,200 259,800 225,000 175,700 355,100
Current 271,100 215,900 360,400 279,200 596,900
U.S. federal and state 3,600 12,000 32,700 51,800 (332,800)
International (4,500) (51,300) (70,400) 33,300 (21,700)
Deferred (900) (39,300) (37,700) 85,100 (354,500)
Provision for income taxes 270,200 176,600 322,700 364,300 242,400

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Ecolab Inc. current decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Ecolab Inc. deferred decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Ecolab Inc. provision for income taxes decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Effective Income Tax Rate (EITR)

Ecolab Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Statutory U.S. federal income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
State income taxes, net of federal benefit 0.60% 0.40% 1.80% 1.20% 0.40%
Foreign operations -0.60% -1.30% 4.80% -13.50% -7.40%
Excess stock benefits -2.00% -4.90% -2.30% -1.60% -2.30%
Domestic manufacturing deduction 0.00% 0.00% 0.00% 0.00% -2.20%
R&D credit -1.30% -1.10% -1.10% -1.00% -1.00%
Foreign derived intangible income -1.60% -0.20% 0.00% 0.00% 0.00%
Change in valuation allowance 0.50% 0.60% -7.40% 9.10% 0.20%
One-time transfer of intangibles 1.80% 0.00% 0.00% 0.00% 0.00%
Audit settlements and refunds 0.00% 0.00% 0.00% -0.80% -0.10%
One-time transition tax 0.00% 0.00% -0.20% 3.70% 9.10%
Prior year adjustments 0.00% 0.00% 0.00% 2.50% 0.00%
Other, net 0.70% 0.70% 0.40% 0.20% 0.20%
Effective income tax rate, before change in federal tax rate 19.10% 15.20% 17.00% 20.80% 31.90%
Change in federal tax rate (deferred taxes) 0.00% 0.00% 0.00% -0.60% -18.20%
Effective income tax rate 19.10% 15.20% 17.00% 20.20% 13.70%

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
Effective income tax rate, before change in federal tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Ecolab Inc. effective income tax rate, before change in federal tax rate decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Components of Deferred Tax Assets and Liabilities

Ecolab Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Pension and post-retirement benefits 136,800 234,300 208,600 145,800 195,200
Other accrued liabilities 135,600 154,700 141,500 130,900 144,400
Lease liability 101,300 95,500 117,900
Credit carryforwards 81,800 76,600
Loss carryforwards 59,600 63,400 71,300 217,200 67,300
Share-based compensation 44,700 44,800 58,400 60,500 58,900
Deferred income 44,800 12,800
Other, net 71,000 64,200 83,000 68,500 122,200
Deferred tax assets, before valuation allowance 675,600 746,300 680,700 622,900 588,000
Valuation allowance (50,300) (45,300) (45,400) (184,400) (21,300)
Deferred tax assets 625,300 701,000 635,300 438,500 566,700
Intangible assets (631,000) (598,900) (729,800) (783,300) (865,600)
Property, plant and equipment (333,500) (317,800) (307,900) (268,500) (178,400)
Lease asset (100,300) (95,400) (118,400)
Financing (34,200)
Other, net (27,700) (9,600) (64,000) (46,200) (63,200)
Deferred tax liabilities (1,126,700) (1,021,700) (1,220,100) (1,098,000) (1,107,200)
Net deferred tax assets (liabilities) balance (501,400) (320,700) (584,800) (659,500) (540,500)

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
Deferred tax assets, before valuation allowance Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Ecolab Inc. deferred tax assets, before valuation allowance increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Ecolab Inc. deferred tax assets increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Net deferred tax assets (liabilities) balance Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Ecolab Inc. net deferred tax assets (liabilities) balance increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Deferred Tax Assets and Liabilities, Classification

Ecolab Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Deferred tax assets 120,600 163,200 155,600 105,100 102,200
Deferred tax liabilities 622,000 483,900 740,400 764,600 642,800

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
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Ecolab Inc. deferred tax assets increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Ecolab Inc. deferred tax liabilities decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 120,600 163,200 155,600 105,100 102,200
Total assets (adjusted) 21,085,800 17,962,800 20,713,500 19,969,400 19,860,200
Adjustment to Total Liabilities
Total liabilities (as reported) 13,953,300 11,924,500 12,143,300 12,020,900 12,273,700
Less: Noncurrent deferred tax liabilities, net 622,000 483,900 740,400 764,600 642,800
Total liabilities (adjusted) 13,331,300 11,440,600 11,402,900 11,256,300 11,630,900
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: Net deferred tax assets (liabilities) (501,400) (320,700) (584,800) (659,500) (540,500)
Total Ecolab shareholders’ equity (adjusted) 7,725,600 6,487,200 9,270,100 8,662,700 8,159,000
Adjustment to Net Income (loss) Attributable To Ecolab
Net income (loss) attributable to Ecolab (as reported) 1,129,900 (1,205,100) 1,558,900 1,429,100 1,508,400
Add: Deferred income tax expense (benefit) (900) (39,300) (37,700) 85,100 (354,500)
Net income (loss) attributable to Ecolab (adjusted) 1,129,000 (1,244,400) 1,521,200 1,514,200 1,153,900

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 Deferred Taxes (Summary)

Ecolab Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 8.87% -10.22% 10.46% 9.74% 10.90%
Adjusted net profit margin 8.87% -10.55% 10.21% 10.32% 8.34%
Total Asset Turnover
Reported total asset turnover 0.60 0.65 0.71 0.73 0.69
Adjusted total asset turnover 0.60 0.66 0.72 0.73 0.70
Financial Leverage
Reported financial leverage 2.94 2.94 2.40 2.51 2.62
Adjusted financial leverage 2.73 2.77 2.23 2.31 2.43
Return on Equity (ROE)
Reported ROE 15.64% -19.54% 17.95% 17.86% 19.80%
Adjusted ROE 14.61% -19.18% 16.41% 17.48% 14.14%
Return on Assets (ROA)
Reported ROA 5.33% -6.65% 7.47% 7.12% 7.56%
Adjusted ROA 5.35% -6.93% 7.34% 7.58% 5.81%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Ecolab Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
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 A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Ecolab Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Ecolab Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted 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 Net Profit Margin

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
Net sales 12,733,100 11,790,200 14,906,300 14,668,200 13,838,300
Profitability Ratio
Net profit margin1 8.87% -10.22% 10.46% 9.74% 10.90%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Ecolab 1,129,000 (1,244,400) 1,521,200 1,514,200 1,153,900
Net sales 12,733,100 11,790,200 14,906,300 14,668,200 13,838,300
Profitability Ratio
Adjusted net profit margin2 8.87% -10.55% 10.21% 10.32% 8.34%

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 Net profit margin = 100 × Net income (loss) attributable to Ecolab ÷ Net sales
= 100 × 1,129,900 ÷ 12,733,100 = 8.87%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Ecolab ÷ Net sales
= 100 × 1,129,000 ÷ 12,733,100 = 8.87%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Ecolab Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

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 Deferred Taxes
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 21,085,800 17,962,800 20,713,500 19,969,400 19,860,200
Activity Ratio
Adjusted total asset turnover2 0.60 0.66 0.72 0.73 0.70

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 ÷ 21,085,800 = 0.60

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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 21,085,800 17,962,800 20,713,500 19,969,400 19,860,200
Adjusted total Ecolab shareholders’ equity 7,725,600 6,487,200 9,270,100 8,662,700 8,159,000
Solvency Ratio
Adjusted financial leverage2 2.73 2.77 2.23 2.31 2.43

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
= 21,085,800 ÷ 7,725,600 = 2.73

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Ecolab Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Ecolab 1,129,000 (1,244,400) 1,521,200 1,514,200 1,153,900
Adjusted total Ecolab shareholders’ equity 7,725,600 6,487,200 9,270,100 8,662,700 8,159,000
Profitability Ratio
Adjusted ROE2 14.61% -19.18% 16.41% 17.48% 14.14%

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 × Adjusted net income (loss) attributable to Ecolab ÷ Adjusted total Ecolab shareholders’ equity
= 100 × 1,129,000 ÷ 7,725,600 = 14.61%

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

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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Ecolab 1,129,000 (1,244,400) 1,521,200 1,514,200 1,153,900
Adjusted total assets 21,085,800 17,962,800 20,713,500 19,969,400 19,860,200
Profitability Ratio
Adjusted ROA2 5.35% -6.93% 7.34% 7.58% 5.81%

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 × Adjusted net income (loss) attributable to Ecolab ÷ Adjusted total assets
= 100 × 1,129,000 ÷ 21,085,800 = 5.35%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted 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.