Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Ecolab Inc., balance sheet: inventory

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Finished goods	1,010,600)	789,600)	936,500)	1,016,900)	974,300)
Raw materials and parts	596,100)	511,200)	559,800)	525,600)	438,700)
Inventories at FIFO cost	1,606,700)	1,300,800)	1,496,300)	1,542,500)	1,413,000)
FIFO cost to LIFO cost difference	(114,900)	(15,600)	9,300)	3,900)	32,900)
Inventories	1,491,800)	1,285,200)	1,505,600)	1,546,400)	1,445,900)

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).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Ecolab Inc. inventories decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Inventories
Inventories at LIFO (as reported)	1,491,800)	1,285,200)	1,505,600)	1,546,400)	1,445,900)
Add: Inventory LIFO reserve	114,900)	15,600)	(9,300)	(3,900)	(32,900)
Inventories at FIFO (adjusted)	1,606,700)	1,300,800)	1,496,300)	1,542,500)	1,413,000)
Adjustment to Current Assets
Current assets (as reported)	4,687,100)	5,117,400)	4,828,400)	4,677,700)	4,596,400)
Add: Inventory LIFO reserve	114,900)	15,600)	(9,300)	(3,900)	(32,900)
Current assets (adjusted)	4,802,000)	5,133,000)	4,819,100)	4,673,800)	4,563,500)
Adjustment to Total Assets
Total assets (as reported)	21,206,400)	18,126,000)	20,869,100)	20,074,500)	19,962,400)
Add: Inventory LIFO reserve	114,900)	15,600)	(9,300)	(3,900)	(32,900)
Total assets (adjusted)	21,321,300)	18,141,600)	20,859,800)	20,070,600)	19,929,500)
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)
Add: Inventory LIFO reserve	114,900)	15,600)	(9,300)	(3,900)	(32,900)
Total Ecolab shareholders’ equity (adjusted)	7,339,100)	6,182,100)	8,676,000)	7,999,300)	7,585,600)
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: Increase (decrease) in inventory LIFO reserve	99,300)	(9,200)	(5,400)	29,000)	18,100)
Net income (loss) attributable to Ecolab (adjusted)	1,229,200)	(1,214,300)	1,553,500)	1,458,100)	1,526,500)

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).

Ecolab Inc. inventory value on Dec 31, 2021 would be $1,606,700) (in thousands) if the FIFO inventory method was used instead of LIFO. Ecolab Inc. inventories, valued on a LIFO basis, on Dec 31, 2021 were $1,491,800). Ecolab Inc. inventories would have been $114,900) higher than reported on Dec 31, 2021 if the FIFO method had been used instead.

Ecolab Inc., Financial Data: Reported vs. Adjusted

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Ecolab Inc., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Current Ratio
Reported current ratio (LIFO)	1.32	1.75	1.33	1.27	1.34
Adjusted current ratio (FIFO)	1.35	1.75	1.33	1.27	1.33
Net Profit Margin
Reported net profit margin (LIFO)	8.87%	-10.22%	10.46%	9.74%	10.90%
Adjusted net profit margin (FIFO)	9.65%	-10.30%	10.42%	9.94%	11.03%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.60	0.65	0.71	0.73	0.69
Adjusted total asset turnover (FIFO)	0.60	0.65	0.71	0.73	0.69
Financial Leverage
Reported financial leverage (LIFO)	2.94	2.94	2.40	2.51	2.62
Adjusted financial leverage (FIFO)	2.91	2.93	2.40	2.51	2.63
Return on Equity (ROE)
Reported ROE (LIFO)	15.64%	-19.54%	17.95%	17.86%	19.80%
Adjusted ROE (FIFO)	16.75%	-19.64%	17.91%	18.23%	20.12%
Return on Assets (ROA)
Reported ROA (LIFO)	5.33%	-6.65%	7.47%	7.12%	7.56%
Adjusted ROA (FIFO)	5.77%	-6.69%	7.45%	7.26%	7.66%

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 current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Ecolab Inc. adjusted current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by 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

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Current assets	4,687,100)	5,117,400)	4,828,400)	4,677,700)	4,596,400)
Current liabilities	3,553,200)	2,932,200)	3,630,600)	3,685,600)	3,431,800)
Liquidity Ratio
Current ratio¹	1.32	1.75	1.33	1.27	1.34
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets	4,802,000)	5,133,000)	4,819,100)	4,673,800)	4,563,500)
Current liabilities	3,553,200)	2,932,200)	3,630,600)	3,685,600)	3,431,800)
Liquidity Ratio
Adjusted current ratio²	1.35	1.75	1.33	1.27	1.33

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 Current ratio = Current assets ÷ Current liabilities
= 4,687,100 ÷ 3,553,200 = 1.32

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 4,802,000 ÷ 3,553,200 = 1.35

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Ecolab Inc. adjusted current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Ecolab	1,229,200)	(1,214,300)	1,553,500)	1,458,100)	1,526,500)
Net sales	12,733,100)	11,790,200)	14,906,300)	14,668,200)	13,838,300)
Profitability Ratio
Adjusted net profit margin²	9.65%	-10.30%	10.42%	9.94%	11.03%

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 × 1,229,200 ÷ 12,733,100 = 9.65%

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

	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: After Conversion from LIFO to FIFO
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	21,321,300)	18,141,600)	20,859,800)	20,070,600)	19,929,500)
Activity Ratio
Adjusted total asset turnover²	0.60	0.65	0.71	0.73	0.69

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 ÷ 21,321,300 = 0.60

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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.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets	21,321,300)	18,141,600)	20,859,800)	20,070,600)	19,929,500)
Adjusted total Ecolab shareholders’ equity	7,339,100)	6,182,100)	8,676,000)	7,999,300)	7,585,600)
Solvency Ratio
Adjusted financial leverage²	2.91	2.93	2.40	2.51	2.63

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
= 21,321,300 ÷ 7,339,100 = 2.91

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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.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Ecolab	1,229,200)	(1,214,300)	1,553,500)	1,458,100)	1,526,500)
Adjusted total Ecolab shareholders’ equity	7,339,100)	6,182,100)	8,676,000)	7,999,300)	7,585,600)
Profitability Ratio
Adjusted ROE²	16.75%	-19.64%	17.91%	18.23%	20.12%

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 × 1,229,200 ÷ 7,339,100 = 16.75%

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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.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Ecolab	1,229,200)	(1,214,300)	1,553,500)	1,458,100)	1,526,500)
Adjusted total assets	21,321,300)	18,141,600)	20,859,800)	20,070,600)	19,929,500)
Profitability Ratio
Adjusted ROA²	5.77%	-6.69%	7.45%	7.26%	7.66%

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 × 1,229,200 ÷ 21,321,300 = 5.77%

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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.

Ecolab Inc. (NYSE:ECL)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Ecolab Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Ecolab Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)