Operating Profit Margin
since 2005
Calculation
Ecolab Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 12.55% | = | 100 | × | 1,598,600) | ÷ | 12,733,100) |
| Dec 31, 2020 | 11.84% | = | 100 | × | 1,395,700) | ÷ | 11,790,200) |
| Dec 31, 2019 | 13.51% | = | 100 | × | 2,013,800) | ÷ | 14,906,300) |
| Dec 31, 2018 | 13.27% | = | 100 | × | 1,947,000) | ÷ | 14,668,200) |
| Dec 31, 2017 | 14.60% | = | 100 | × | 2,019,800) | ÷ | 13,838,300) |
| Dec 31, 2016 | 14.56% | = | 100 | × | 1,915,000) | ÷ | 13,152,800) |
| Dec 31, 2015 | 11.53% | = | 100 | × | 1,561,300) | ÷ | 13,545,100) |
| Dec 31, 2014 | 13.69% | = | 100 | × | 1,955,000) | ÷ | 14,280,500) |
| Dec 31, 2013 | 11.78% | = | 100 | × | 1,560,600) | ÷ | 13,253,400) |
| Dec 31, 2012 | 10.89% | = | 100 | × | 1,289,300) | ÷ | 11,838,700) |
| Dec 31, 2011 | 11.09% | = | 100 | × | 753,800) | ÷ | 6,798,500) |
| Dec 31, 2010 | 13.25% | = | 100 | × | 806,800) | ÷ | 6,089,700) |
| Dec 31, 2009 | 11.55% | = | 100 | × | 681,300) | ÷ | 5,900,600) |
| Dec 31, 2008 | 11.61% | = | 100 | × | 712,500) | ÷ | 6,137,500) |
| Dec 31, 2007 | 12.20% | = | 100 | × | 667,300) | ÷ | 5,469,600) |
| Dec 31, 2006 | 12.49% | = | 100 | × | 611,642) | ÷ | 4,895,814) |
| Dec 31, 2005 | 11.96% | = | 100 | × | 542,420) | ÷ | 4,534,832) |
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 operating profit margin exhibits a long-term pattern of stability punctuated by a period of rapid scaling and subsequent efficiency optimization, followed by recent volatility and recovery.
- Initial Stability Phase (2005–2011)
- During the initial seven-year period, the operating profit margin remained relatively constant, fluctuating within a narrow band between 11.09% and 13.25%. This suggests a consistent relationship between revenue growth and operating expenses prior to 2012.
- Scaling Impact and Margin Compression (2012–2013)
- A significant shift occurred in 2012, where net sales increased by approximately 74% year-over-year. Despite this surge in volume, the operating profit margin declined to 10.89%, representing the lowest margin in the analyzed series. This indicates that the rapid expansion of the business scale initially led to higher operating costs that outpaced the immediate gains in operating income.
- Operational Optimization and Peak Efficiency (2014–2017)
- Following the expansion phase, a clear upward trend in profitability is observed. The operating profit margin rose steadily, reaching a peak of 14.60% by December 31, 2017. This progression suggests successful post-expansion integration and improved operational leverage, allowing the company to convert a higher percentage of sales into operating profit.
- Recent Performance and Recovery (2018–2021)
- The most recent period shows increased volatility. A sharp decline in both net sales and operating income was recorded in 2020, causing the operating profit margin to contract to 11.84%. However, a recovery trend began in 2021, with the margin increasing to 12.55%, signaling a return toward pre-2020 efficiency levels.
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Comparison to Competitors
Ecolab Inc., operating profit margin, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | |
|---|---|---|
| Dec 31, 2021 | 12.55% | 16.19% |
| Dec 31, 2020 | 11.84% | 12.19% |
| Dec 31, 2019 | 13.51% | 10.39% |
| Dec 31, 2018 | 13.27% | 35.21% |
| Dec 31, 2017 | 14.60% | 21.40% |
| Dec 31, 2016 | 14.56% | 21.25% |
| Dec 31, 2015 | 11.53% | 21.54% |
| Dec 31, 2014 | 13.69% | 21.25% |
| Dec 31, 2013 | 11.78% | 22.01% |
| Dec 31, 2012 | 10.89% | 21.71% |
| Dec 31, 2011 | 11.09% | 21.93% |
| Dec 31, 2010 | 13.25% | 20.58% |
| Dec 31, 2009 | 11.55% | 17.59% |
| Dec 31, 2008 | 11.61% | 17.44% |
| Dec 31, 2007 | 12.20% | 19.00% |
| Dec 31, 2006 | 12.49% | 18.25% |
| Dec 31, 2005 | 11.96% | 16.89% |
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).