Current Ratio
since 2005
Calculation
Ecolab Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 1.32 | = | 4,687,100) | ÷ | 3,553,200) |
| Dec 31, 2020 | 1.75 | = | 5,117,400) | ÷ | 2,932,200) |
| Dec 31, 2019 | 1.33 | = | 4,828,400) | ÷ | 3,630,600) |
| Dec 31, 2018 | 1.27 | = | 4,677,700) | ÷ | 3,685,600) |
| Dec 31, 2017 | 1.34 | = | 4,596,400) | ÷ | 3,431,800) |
| Dec 31, 2016 | 1.42 | = | 4,279,400) | ÷ | 3,019,400) |
| Dec 31, 2015 | 0.93 | = | 4,447,500) | ÷ | 4,764,400) |
| Dec 31, 2014 | 1.11 | = | 4,871,100) | ÷ | 4,386,600) |
| Dec 31, 2013 | 1.35 | = | 4,698,400) | ÷ | 3,488,700) |
| Dec 31, 2012 | 1.60 | = | 4,892,000) | ÷ | 3,052,700) |
| Dec 31, 2011 | 1.70 | = | 5,396,000) | ÷ | 3,166,300) |
| Dec 31, 2010 | 1.41 | = | 1,869,900) | ÷ | 1,324,800) |
| Dec 31, 2009 | 1.45 | = | 1,814,200) | ÷ | 1,250,200) |
| Dec 31, 2008 | 1.17 | = | 1,691,100) | ÷ | 1,441,900) |
| Dec 31, 2007 | 1.13 | = | 1,717,300) | ÷ | 1,518,300) |
| Dec 31, 2006 | 1.23 | = | 1,853,557) | ÷ | 1,502,730) |
| Dec 31, 2005 | 1.27 | = | 1,421,666) | ÷ | 1,119,357) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The analysis of the data over the period reveals several noteworthy trends in the liquidity position, as reflected by current assets, current liabilities, and the current ratio.
- Current Assets
- There is an overall upward trend in current assets from 2005 to 2021, starting at approximately 1,421,666 thousand US dollars and reaching a peak around 5,397,000 thousand US dollars in 2011. This significant increase during the 2006-2011 period indicates substantial growth in short-term assets, followed by some fluctuations and partial declines in subsequent years. After 2011, current assets generally stabilized with minor variations, settling near 4,687,100 thousand US dollars in 2021, which remains higher than the earliest years but below the 2011 peak.
- Current Liabilities
- Current liabilities also show a rising trend over the period, increasing from about 1,119,357 thousand US dollars in 2005 to a peak of 4,766,400 thousand US dollars in 2014, before decreasing to 3,553,200 thousand US dollars by 2021. The period between 2005 and 2014 saw a strong increase in obligations payable within one year, indicating a significant expansion in short-term financial commitments. Post-2014, current liabilities exhibited some volatility, with a notable decrease by 2021 but still considerably higher than at the start.
- Current Ratio
- The current ratio demonstrates varied liquidity conditions throughout the timeline. Initially, it hovered modestly above 1.0, fluctuating between 1.13 and 1.45, pointing to a generally balanced but cautious liquidity position. Between 2006 and 2011, the current ratio improved, reaching up to 1.7 in 2011, which aligns with the surge in current assets. Post-2011, the ratio experienced more volatility, dropping below 1.0 in 2015 (0.93) which suggests a temporary liquidity strain where current liabilities exceeded current assets. Subsequently, the ratio recovered and peaked at 1.75 in 2020, indicating strong short-term liquidity. By 2021, it settled at 1.32, reflecting adequate liquidity though slightly reduced from the previous year’s high.
Collectively, these patterns indicate a period of aggressive growth in short-term assets and liabilities up to the early 2010s, followed by stabilization and fluctuations in liquidity. The fluctuations in the current ratio, especially the dip below 1.0 in 2015 and the peak in 2020, suggest periods of varying operational efficiency or changes in working capital management. Overall, the data reflects a company adapting its liquidity position over time, with a recent tendency toward maintaining a healthy balance between current assets and liabilities.
Comparison to Competitors
Ecolab Inc., current ratio, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2021 | 1.32 | 0.74 | 0.88 |
| Dec 31, 2020 | 1.75 | 0.80 | 1.00 |
| Dec 31, 2019 | 1.33 | 0.85 | 1.02 |
| Dec 31, 2018 | 1.27 | 1.33 | 1.01 |
| Dec 31, 2017 | 1.34 | 0.99 | 1.12 |
| Dec 31, 2016 | 1.42 | 1.16 | 1.28 |
| Dec 31, 2015 | 0.93 | 1.39 | 1.24 |
| Dec 31, 2014 | 1.11 | 1.14 | 0.96 |
| Dec 31, 2013 | 1.35 | 1.09 | 1.25 |
| Dec 31, 2012 | 1.60 | 1.13 | 1.68 |
| Dec 31, 2011 | 1.70 | 1.03 | 1.05 |
| Dec 31, 2010 | 1.41 | 1.13 | 1.07 |
| Dec 31, 2009 | 1.45 | 1.23 | 1.27 |
| Dec 31, 2008 | 1.17 | 0.77 | 0.99 |
| Dec 31, 2007 | 1.13 | 0.91 | 0.97 |
| Dec 31, 2006 | 1.23 | 1.17 | 1.18 |
| Dec 31, 2005 | 1.27 | 1.07 | 1.22 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Chemicals)
Ecolab Inc., current ratio, long-term trends, comparison to sector (chemicals)
| Ecolab Inc. | Chemicals | |
|---|---|---|
| Dec 31, 2021 | 1.32 | 0.79 |
| Dec 31, 2020 | 1.75 | 0.85 |
| Dec 31, 2019 | 1.33 | 0.90 |
| Dec 31, 2018 | 1.27 | 1.25 |
| Dec 31, 2017 | 1.34 | 1.06 |
| Dec 31, 2016 | 1.42 | 1.23 |
| Dec 31, 2015 | 0.93 | 1.31 |
| Dec 31, 2014 | 1.11 | 1.05 |
| Dec 31, 2013 | 1.35 | 1.17 |
| Dec 31, 2012 | 1.60 | 1.36 |
| Dec 31, 2011 | 1.70 | 1.04 |
| Dec 31, 2010 | 1.41 | 1.10 |
| Dec 31, 2009 | 1.45 | 1.25 |
| Dec 31, 2008 | 1.17 | 0.86 |
| Dec 31, 2007 | 1.13 | 0.93 |
| Dec 31, 2006 | 1.23 | 1.18 |
| Dec 31, 2005 | 1.27 | 1.13 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Materials)
Ecolab Inc., current ratio, long-term trends, comparison to industry (materials)
| Ecolab Inc. | Materials | |
|---|---|---|
| Dec 31, 2021 | 1.32 | 1.19 |
| Dec 31, 2020 | 1.75 | 1.14 |
| Dec 31, 2019 | 1.33 | 1.15 |
| Dec 31, 2018 | 1.27 | 1.57 |
| Dec 31, 2017 | 1.34 | 1.50 |
| Dec 31, 2016 | 1.42 | 1.77 |
| Dec 31, 2015 | 0.93 | 1.53 |
| Dec 31, 2014 | 1.11 | 1.40 |
| Dec 31, 2013 | 1.35 | 1.61 |
| Dec 31, 2012 | 1.60 | 2.11 |
| Dec 31, 2011 | 1.70 | 1.95 |
| Dec 31, 2010 | 1.41 | 1.82 |
| Dec 31, 2009 | 1.45 | 1.84 |
| Dec 31, 2008 | 1.17 | 1.17 |
| Dec 31, 2007 | 1.13 | 1.20 |
| Dec 31, 2006 | 1.23 | 1.39 |
| Dec 31, 2005 | 1.27 | 1.23 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).