Ecolab Inc. (NYSE:ECL)

The analysis of the annual financial data reveals the following trends for the periods from December 31, 2017, to December 31, 2021:

Current Assets

The current assets show a generally positive trend from 2017 through 2020, increasing from approximately 4,596,400 thousand US dollars in 2017 to a peak of around 5,117,400 thousand US dollars in 2020. However, there is a noticeable decline in 2021, with current assets decreasing to 4,687,100 thousand US dollars, which suggests a reduction in the liquid or short-term assets available at the end of that year.

Adjusted Current Assets

The adjusted current assets follow a similar pattern to current assets. They start at about 4,635,000 thousand US dollars in 2017 and increase each year, reaching a high of approximately 5,201,400 thousand US dollars in 2020. In 2021, adjusted current assets decrease to roughly 4,854,800 thousand US dollars, indicating a reduction after several years of growth.

Overall, both current and adjusted current assets experienced steady growth over the first four years, reflecting an improving liquidity position or greater availability of short-term resources. The decline in 2021 in both categories could indicate a strategic shift, potential increased use of current assets, or other operational factors affecting the company's asset base at that time.

Total Assets

The total assets experienced a modest increase from 19,962,400 thousand US dollars at the end of 2017 to 20,074,500 thousand in 2018. This upward trend continued into 2019, reaching 20,869,100 thousand. However, a noticeable decline occurred in 2020, with total assets decreasing to 18,126,000 thousand. By the end of 2021, total assets rebounded significantly to 21,206,400 thousand, surpassing previous years' levels.

Adjusted Total Assets

The adjusted total assets closely mirrored the trend of total assets over the same period. Starting at 20,451,778 thousand in 2017, the figure slightly increased to 20,600,802 thousand in 2018, then remained relatively stable in 2019 at 20,766,200 thousand. Similar to total assets, adjusted total assets declined in 2020 to 18,046,800 thousand before rising considerably in 2021 to 21,253,500 thousand, reaching the highest point in the observed period.

Current Liabilities

The current liabilities exhibit a fluctuating trend over the five-year period. Starting at approximately 3,431,800 thousand US dollars at the end of 2017, there is a gradual increase reaching a peak of 3,685,600 thousand US dollars by the end of 2018. This peak is followed by a slight decline to 3,630,600 thousand in 2019. The most significant decrease occurs in 2020, dropping to 2,932,200 thousand, which represents a notable reduction compared to prior years. However, in 2021, there is a recovery with liabilities rising again to 3,553,200 thousand, nearing the levels observed in 2018 and 2019.

Adjusted Current Liabilities

Adjusted current liabilities show a trend closely mirroring that of the reported current liabilities, with values consistently marginally lower. Beginning at 3,395,800 thousand in 2017, these liabilities rise to 3,611,900 thousand in 2018 before declining to 3,523,500 thousand in 2019. A significant decrease is also observed in 2020, falling to 2,834,100 thousand. In 2021, a rebound occurs with adjusted current liabilities increasing to 3,514,100 thousand, again aligning closely with the overall pattern of current liabilities but remaining slightly reduced.

Insights and Patterns

Both current and adjusted current liabilities display a notable dip in 2020, likely reflecting changes in operational or financial strategy, possibly influenced by external factors impacting liquidity or short-term obligations. The subsequent rebound in 2021 suggests a return towards previous liability levels, indicating a degree of normalization or recovery. The close alignment between the adjusted and unadjusted figures over time implies consistent adjustment practices, with adjustments typically reducing reported liabilities by a small margin.

The analysis of the financial data over the five-year period reveals certain trends in the company's liabilities.

Total Liabilities

The total liabilities remained relatively stable during the years 2017 to 2020, fluctuating slightly between approximately 11.9 billion and 12.3 billion US dollars. However, there is a notable increase in 2021, where total liabilities rose significantly to about 13.95 billion US dollars. This marks an approximate increase of 17% compared to the previous year, indicating a possible expansion in debt or other obligations.

Adjusted Total Liabilities

The adjusted total liabilities show a similar pattern to the total liabilities over the years. From 2017 to 2020, there is a gradual decline from roughly 12.14 billion to around 11.34 billion US dollars, suggesting improvements or adjustments in the company’s liabilities management during this period. In 2021, adjusted total liabilities increased sharply to approximately 13.29 billion US dollars, closely paralleling the increase seen in total liabilities for the same year. This rise might reflect changes in accounting adjustments or increased financial responsibilities.

Overall, the company's liabilities were fairly controlled and even decreased slightly in the years leading up to 2020, but 2021 experienced a significant uptick in both total and adjusted liabilities. This could indicate strategic investments, increased borrowing, or other financial shifts.

The analysis of the equity data over the five-year period reveals notable fluctuations. Total shareholders' equity initially increased from approximately 7.62 billion USD at the end of 2017 to about 8.69 billion USD by the end of 2019, indicating a growth trend during this interval. However, there was a significant decline in 2020, with equity dropping to around 6.17 billion USD. This reduction was followed by a recovery in 2021, where total equity rose again to roughly 7.22 billion USD, though it did not reach the previous highs observed in 2019.

Adjusted total equity follows a similar pattern, starting at about 8.31 billion USD at the end of 2017 and climbing steadily to approximately 9.48 billion USD by the end of 2019. In 2020, adjusted equity experienced a sharp decrease to around 6.71 billion USD, mirroring the drop seen in total equity. The data for 2021 shows a partial rebound to roughly 7.96 billion USD, yet still below the peak levels recorded in 2019.

Equity Growth (2017-2019)

Both total shareholders' equity and adjusted total equity increased consistently, reflecting business growth or retained earnings accumulation.

Decline in 2020

A pronounced decrease occurred in both equity measures in 2020, suggesting the company encountered significant challenges, possibly due to adverse market conditions or extraordinary expenses.

Partial Recovery in 2021

Equity values rebounded in 2021, indicating recovery, but did not return to the peak levels observed before the decline.

This pattern indicates resilience, but also highlights volatility within the analyzed period. The drop in 2020 stands out as an anomaly within an overall upward trajectory, warranting further examination of the underlying causes, such as impacts from external economic factors or internal financial events during that year.

The financial data over the five-year period reveals several notable trends in the company’s debt, equity, and capital structure.

Total Reported Debt

Total reported debt displays a decreasing trend from 2017 to 2019, falling from approximately 7.32 billion to 6.35 billion US dollars. However, beginning in 2020, the total debt increases again, reaching 8.76 billion US dollars by the end of 2021, indicating a renewed rise in debt levels.

Total Ecolab Shareholders' Equity

Shareholders’ equity exhibits consistent growth from 2017 through 2019, increasing from around 7.62 billion to 8.69 billion US dollars. In 2020, equity declines markedly to approximately 6.17 billion, followed by a partial recovery to 7.22 billion in 2021, suggesting a period of financial strain or significant adjustments in that interim year.

Total Reported Capital

Reported capital remains relatively stable between 2017 and 2019, hovering near 15 billion US dollars. A noticeable drop occurs in 2020 to roughly 12.85 billion US dollars, concurrent with the declines in both equity and debt, before rebounding strongly in 2021 to approximately 15.98 billion US dollars, reflecting changes in the overall capital base.

Adjusted Total Debt

The adjusted debt figures mirror the reported debt trends closely. Adjusted debt decreases from about 7.88 billion US dollars in 2017 to 6.93 billion in 2019, increases slightly in 2020, and then rises significantly to 9.16 billion US dollars by 2021, indicating similar debt management patterns under adjusted metrics.

Adjusted Total Equity

Adjusted equity increases steadily from 8.31 billion in 2017 to 9.48 billion in 2019, then falls to 6.71 billion in 2020 before recovering to 7.96 billion in 2021. This pattern of growth, decline, and partial recovery aligns with the trends observed in reported shareholders’ equity.

Adjusted Total Capital

The adjusted total capital, paralleling the combined adjusted debt and equity, remains stable around 16.18 billion to 16.41 billion US dollars from 2017 to 2019. Similar to the reported capital, it dips significantly to 13.82 billion in 2020 and then rebounds to 17.12 billion in 2021, indicating fluctuations in overall capital resources.

Overall, the data indicates a period of stability and moderate growth in both debt and equity from 2017 through 2019, followed by a noticeable contraction in 2020 that affects debt, equity, and capital. This contraction is succeeded by a recovery phase in 2021 with a strong increase in debt and capital levels, though equity has not fully returned to its previous peak. These patterns may reflect strategic financing decisions, operational challenges, or external economic influences during the 2020 period, with subsequent capital restructuring or growth efforts evident in 2021.

Net income (loss) attributable to Ecolab

The net income attributable to Ecolab displayed a generally positive trend from 2017 to 2019, increasing from approximately 1,508 million USD in 2017 to 1,559 million USD in 2019. However, a significant downturn occurred in 2020, with the company reporting a net loss of approximately 1,205 million USD. This loss was followed by a recovery in 2021, with net income rising again to approximately 1,130 million USD, though still below the peak observed in 2019.

Adjusted net income (loss) including noncontrolling interest

The adjusted net income, which includes noncontrolling interest and may provide a smoother view of profitability, experienced moderate fluctuations over the five years. It increased from roughly 1,266 million USD in 2017 to a high of 1,460 million USD in 2018, then dipped to 1,297 million USD in 2019. In 2020, the adjusted net income decreased further to approximately 1,066 million USD, but showed a strong rebound in 2021, reaching around 1,520 million USD, the highest level in the period analyzed.