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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Ecolab Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Short-term debt 1.94 0.10 1.82 3.70 2.83
Accounts payable 6.53 6.40 6.15 6.25 5.90
Compensation and benefits 2.40 2.59 2.87 2.89 2.75
Income taxes 0.49 0.53 0.68 0.50 0.92
Discounts and rebates 1.61 1.68 1.59 1.45 1.52
Dividends payable 0.69 0.76 0.65 0.66 0.59
Interest payable 0.22 0.29 0.20 0.22 0.25
Taxes payable, other than income 0.73 0.84 0.54 0.58 0.65
Derivative liabilities 0.00 0.14 0.03 0.10 0.31
Restructuring 0.18 0.54 0.51 0.37 0.18
Contract liability 0.43 0.44 0.41 0.38 0.00
Current operating lease liabilities 0.54 0.69 0.73 0.00 0.00
Other 0.99 1.18 1.20 1.25 1.29
Other current liabilities 5.40% 6.56% 5.86% 5.01% 4.80%
Current liabilities 16.76% 16.18% 17.40% 18.36% 17.19%
Long-term debt, excluding current maturities 39.36 36.79 28.62 31.39 33.86
Postretirement health care and pension benefits 4.22 6.76 5.21 4.70 5.14
Deferred income taxes 2.93 2.67 3.55 3.81 3.22
Noncurrent operating lease liabilities 1.33 1.66 2.04 0.00 0.00
Other liabilities 1.20 1.72 1.37 1.62 2.08
Noncurrent liabilities 49.04% 49.61% 40.79% 41.52% 44.29%
Total liabilities 65.80% 65.79% 58.19% 59.88% 61.48%
Common stock 1.72 2.00 1.72 1.78 1.78
Additional paid-in capital 30.48 34.40 28.31 28.06 27.23
Retained earnings 41.57 45.48 47.89 44.38 40.30
Accumulated other comprehensive loss -7.71 -11.00 -10.01 -8.78 -8.23
Treasury stock -31.99 -36.85 -26.28 -25.58 -22.92
Total Ecolab shareholders’ equity 34.07% 34.02% 41.62% 39.87% 38.16%
Noncontrolling interest 0.14 0.19 0.19 0.25 0.35
Total equity 34.20% 34.21% 41.81% 40.12% 38.52%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure reflects a gradual shift toward higher leverage, with total liabilities increasing from 61.48% of total liabilities and equity in 2017 to 65.80% by 2021. This trend is primarily driven by an expansion in noncurrent liabilities, which grew from 44.29% to 49.04% over the same period, while current liabilities remained relatively stable, fluctuating between 16.18% and 18.36%.

Debt and Liability Composition
Long-term debt, excluding current maturities, represents the most significant component of the liability profile. While it experienced a decline from 33.86% in 2017 to a low of 28.62% in 2019, there was a sharp increase in subsequent years, reaching 39.36% by 2021. Short-term debt remained minimal and volatile, ending the period at 1.94%. Operational liabilities, such as accounts payable, showed consistent stability, maintaining a range between 5.90% and 6.53%.
Shareholders' Equity Trends
Total equity as a percentage of the balance sheet declined from 38.52% in 2017 to 34.20% in 2021. This contraction is largely attributed to an increase in treasury stock, which moved from -22.92% to -31.99%, suggesting an aggressive share repurchase strategy. Retained earnings peaked at 47.89% in 2019 before retreating to 41.57% in 2021. Additionally, accumulated other comprehensive loss widened from -8.23% in 2017 to a peak of -11.00% in 2020, before recovering to -7.71% in 2021.
Operational Obligations
Current operating lease liabilities and noncurrent operating lease liabilities appeared in the reporting starting in 2019, contributing approximately 0.54% and 1.33% respectively to the total balance sheet by 2021. Compensation and benefits liabilities remained steady, hovering between 2.40% and 2.89%.

The overall financial trajectory indicates an intentional increase in the debt-to-equity ratio. The combination of rising long-term debt and substantial treasury stock acquisitions suggests a strategy of utilizing debt to fund shareholder returns or operational growth, resulting in a lower proportion of equity relative to total assets by the end of the analyzed period.

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