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 analysis of the capital structure from 2005 to 2021 reveals a significant shift in leverage strategy, moving from a low-debt profile to a more leveraged position, followed by a period of stabilization and a recent upward trend in the debt to equity ratio.
- Initial Leverage Phase (2005–2010)
- Between 2005 and 2010, the debt to equity ratio remained relatively low and stable, fluctuating between a minimum of 0.40 and a maximum of 0.72. Total debt during this interval was maintained at modest levels, ranging from 746 million to 1.1 billion US dollars, while shareholders' equity grew steadily from 1.6 billion to 2.1 billion US dollars.
- Structural Shift in Capitalization (2011)
- A pivotal increase in leverage occurred in 2011, marked by a sharp rise in the debt to equity ratio to 1.35. This change was driven by a substantial increase in total debt, which surged from 845.6 million US dollars in 2010 to 7.6 billion US dollars in 2011. Shareholders' equity also increased significantly to 5.6 billion US dollars during the same period, indicating a major expansion of the balance sheet.
- Deleveraging and Equity Growth (2012–2019)
- From 2012 to 2019, a gradual downward trend in the debt to equity ratio is observed, decreasing from 1.08 to 0.73. This reduction in leverage was primarily facilitated by the consistent growth of shareholders' equity, which climbed from 6.0 billion US dollars in 2012 to a peak of 8.6 billion US dollars in 2019, while total debt remained relatively range-bound between 6.3 billion and 7.3 billion US dollars.
- Recent Leverage Increase (2020–2021)
- The most recent data indicates a renewed increase in financial leverage. In 2020, the debt to equity ratio rose to 1.08, coinciding with a contraction in shareholders' equity to 6.1 billion US dollars. By December 31, 2021, the ratio further increased to 1.21, as total debt reached its highest recorded level of 8.7 billion US dollars.
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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).