Debt to Equity
since 2005
Calculation
Ecolab Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total Ecolab shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 1.21 | = | 8,758,200) | ÷ | 7,224,200) |
| Dec 31, 2020 | 1.08 | = | 6,686,600) | ÷ | 6,166,500) |
| Dec 31, 2019 | 0.73 | = | 6,354,100) | ÷ | 8,685,300) |
| Dec 31, 2018 | 0.88 | = | 7,045,200) | ÷ | 8,003,200) |
| Dec 31, 2017 | 0.96 | = | 7,322,700) | ÷ | 7,618,500) |
| Dec 31, 2016 | 0.97 | = | 6,687,000) | ÷ | 6,901,100) |
| Dec 31, 2015 | 0.94 | = | 6,465,500) | ÷ | 6,909,900) |
| Dec 31, 2014 | 0.90 | = | 6,569,400) | ÷ | 7,315,900) |
| Dec 31, 2013 | 0.94 | = | 6,904,500) | ÷ | 7,344,300) |
| Dec 31, 2012 | 1.08 | = | 6,541,900) | ÷ | 6,077,000) |
| Dec 31, 2011 | 1.35 | = | 7,636,200) | ÷ | 5,666,700) |
| Dec 31, 2010 | 0.40 | = | 845,600) | ÷ | 2,129,200) |
| Dec 31, 2009 | 0.48 | = | 967,300) | ÷ | 2,000,900) |
| Dec 31, 2008 | 0.72 | = | 1,138,200) | ÷ | 1,571,600) |
| Dec 31, 2007 | 0.52 | = | 1,003,400) | ÷ | 1,935,700) |
| Dec 31, 2006 | 0.63 | = | 1,066,036) | ÷ | 1,680,230) |
| Dec 31, 2005 | 0.45 | = | 746,301) | ÷ | 1,649,210) |
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 financial data exhibits several notable trends over the period under review. Total debt displays significant fluctuations, starting at approximately $746 million and peaking near $7.6 billion in 2011. After this peak, the total debt remains relatively elevated, oscillating around the $6.3 billion to $8.8 billion range. This indicates a substantial increase in leverage from earlier years, with a particularly sharp rise occurring between 2010 and 2011. The elevated debt levels persist into the later years, culminating in the highest recorded value at the end of 2021.
Total shareholders' equity also shows a general upward trajectory from the initial $1.6 billion, reaching a notable peak of around $8.7 billion in 2019. However, this is followed by a decline to approximately $6.2 billion in 2020, with a partial recovery to $7.2 billion by the end of 2021. The substantial increase in equity observed around 2011 corresponds with the rise in total debt, suggesting significant capital structure changes during that period.
The debt to equity ratio illustrates the relationship between debt and shareholders' equity and reflects the shifts in the company’s capital structure. Initially, this ratio remains below 1.0, fluctuating between 0.4 and 0.72, indicating moderate leverage. Beginning in 2011, the ratio sharply increases to 1.35, signifying that debt has exceeded equity substantially. Subsequent years show the ratio trending downward slightly but remaining close to or above 1.0, except for a dip to 0.73 in 2019. The ratio’s rise from 1.08 in 2020 to 1.21 in 2021 suggests increasing reliance on debt financing relative to equity in the later years.
- Total Debt
- Significantly increased from $746 million in 2005 to a peak of approximately $7.6 billion in 2011, with high levels maintained through 2021.
- Total Shareholders’ Equity
- General upward trend from $1.6 billion in 2005 to $8.7 billion in 2019, followed by a decline and partial recovery by 2021.
- Debt to Equity Ratio
- Initially moderate and below 1.0, followed by a sharp increase to 1.35 in 2011; ratio remains close to or above 1.0 thereafter, indicating higher leverage.
Overall, the financial structure reflects an expansion in both debt and equity over the period, with a marked increase in leverage starting in 2011. The persistence of debt levels above equity in recent years may suggest a strategic shift toward greater use of debt financing or capital-intensive investments. The fluctuations in equity and the debt to equity ratio warrant monitoring to assess potential impacts on financial risk and flexibility.
Comparison to Competitors
Ecolab Inc., debt to equity, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2021 | 1.21 | 0.32 | 3.95 |
| Dec 31, 2020 | 1.08 | 0.34 | 2.30 |
| Dec 31, 2019 | 0.73 | 0.28 | 2.11 |
| Dec 31, 2018 | 0.88 | 0.30 | 2.50 |
| Dec 31, 2017 | 0.96 | 1.50 | 2.85 |
| Dec 31, 2016 | 0.97 | 1.90 | 1.04 |
| Dec 31, 2015 | 0.94 | 2.10 | 2.26 |
| Dec 31, 2014 | 0.90 | 1.65 | 1.81 |
| Dec 31, 2013 | 0.94 | 1.33 | 0.97 |
| Dec 31, 2012 | 1.08 | 1.21 | 0.95 |
| Dec 31, 2011 | 1.35 | 1.20 | 0.65 |
| Dec 31, 2010 | 0.40 | 0.96 | 0.65 |
| Dec 31, 2009 | 0.48 | 0.95 | 0.55 |
| Dec 31, 2008 | 0.72 | 1.25 | 0.52 |
| Dec 31, 2007 | 0.52 | 0.82 | 0.54 |
| Dec 31, 2006 | 0.63 | 0.70 | 0.44 |
| Dec 31, 2005 | 0.45 | 0.88 | 0.36 |
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., debt to equity, long-term trends, comparison to sector (chemicals)
| Ecolab Inc. | Chemicals | |
|---|---|---|
| Dec 31, 2021 | 1.21 | 0.51 |
| Dec 31, 2020 | 1.08 | 0.48 |
| Dec 31, 2019 | 0.73 | 0.43 |
| Dec 31, 2018 | 0.88 | 0.45 |
| Dec 31, 2017 | 0.96 | 2.01 |
| Dec 31, 2016 | 0.97 | 1.66 |
| Dec 31, 2015 | 0.94 | 2.13 |
| Dec 31, 2014 | 0.90 | 1.67 |
| Dec 31, 2013 | 0.94 | 1.26 |
| Dec 31, 2012 | 1.08 | 1.15 |
| Dec 31, 2011 | 1.35 | 1.08 |
| Dec 31, 2010 | 0.40 | 0.89 |
| Dec 31, 2009 | 0.48 | 0.86 |
| Dec 31, 2008 | 0.72 | 1.04 |
| Dec 31, 2007 | 0.52 | 0.74 |
| Dec 31, 2006 | 0.63 | 0.62 |
| Dec 31, 2005 | 0.45 | 0.72 |
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., debt to equity, long-term trends, comparison to industry (materials)
| Ecolab Inc. | Materials | |
|---|---|---|
| Dec 31, 2021 | 1.21 | 0.55 |
| Dec 31, 2020 | 1.08 | 0.56 |
| Dec 31, 2019 | 0.73 | 0.52 |
| Dec 31, 2018 | 0.88 | 0.55 |
| Dec 31, 2017 | 0.96 | 1.85 |
| Dec 31, 2016 | 0.97 | 2.12 |
| Dec 31, 2015 | 0.94 | 2.42 |
| Dec 31, 2014 | 0.90 | 1.21 |
| Dec 31, 2013 | 0.94 | 1.07 |
| Dec 31, 2012 | 1.08 | 0.50 |
| Dec 31, 2011 | 1.35 | 0.49 |
| Dec 31, 2010 | 0.40 | 0.57 |
| Dec 31, 2009 | 0.48 | 0.77 |
| Dec 31, 2008 | 0.72 | 1.16 |
| Dec 31, 2007 | 0.52 | 0.49 |
| Dec 31, 2006 | 0.63 | 0.53 |
| Dec 31, 2005 | 0.45 | 0.71 |
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).