Return on Assets (ROA)
since 2005
Calculation
Ecolab Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Ecolab1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 5.33% | = | 100 | × | 1,129,900) | ÷ | 21,206,400) |
| Dec 31, 2020 | -6.65% | = | 100 | × | (1,205,100) | ÷ | 18,126,000) |
| Dec 31, 2019 | 7.47% | = | 100 | × | 1,558,900) | ÷ | 20,869,100) |
| Dec 31, 2018 | 7.12% | = | 100 | × | 1,429,100) | ÷ | 20,074,500) |
| Dec 31, 2017 | 7.56% | = | 100 | × | 1,508,400) | ÷ | 19,962,400) |
| Dec 31, 2016 | 6.71% | = | 100 | × | 1,229,600) | ÷ | 18,330,200) |
| Dec 31, 2015 | 5.38% | = | 100 | × | 1,002,100) | ÷ | 18,641,700) |
| Dec 31, 2014 | 6.18% | = | 100 | × | 1,202,800) | ÷ | 19,466,700) |
| Dec 31, 2013 | 4.93% | = | 100 | × | 967,800) | ÷ | 19,636,500) |
| Dec 31, 2012 | 4.00% | = | 100 | × | 703,600) | ÷ | 17,572,300) |
| Dec 31, 2011 | 2.54% | = | 100 | × | 462,500) | ÷ | 18,240,800) |
| Dec 31, 2010 | 10.88% | = | 100 | × | 530,300) | ÷ | 4,872,200) |
| Dec 31, 2009 | 8.31% | = | 100 | × | 417,300) | ÷ | 5,020,900) |
| Dec 31, 2008 | 9.42% | = | 100 | × | 448,100) | ÷ | 4,756,900) |
| Dec 31, 2007 | 9.05% | = | 100 | × | 427,200) | ÷ | 4,722,800) |
| Dec 31, 2006 | 8.34% | = | 100 | × | 368,615) | ÷ | 4,419,365) |
| Dec 31, 2005 | 8.41% | = | 100 | × | 319,481) | ÷ | 3,796,628) |
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 trajectory of Return on Assets (ROA) from 2005 to 2021 is characterized by a period of high initial efficiency, a sharp correction following a massive expansion of the asset base, and a subsequent recovery interrupted by a significant singular-year loss.
- Initial Period of Stability (2005–2010)
- During this interval, ROA remained consistently strong, fluctuating between 8.31% and 10.88%. This period was marked by a gradual increase in net income and a relatively stable asset base, peaking at 5.02 billion in 2009, which indicates high operational efficiency relative to the company's size at the time.
- Asset Base Expansion and ROA Compression (2011)
- A pivotal shift occurred in 2011 when total assets increased abruptly from approximately 4.87 billion to 18.24 billion. This significant expansion of the balance sheet led to an immediate and sharp decline in ROA to 2.54%, as the growth in assets far outpaced the growth in net income for that fiscal year.
- Incremental Recovery and Scaling (2012–2019)
- Following the 2011 asset surge, a steady recovery trend is observed. ROA climbed from 4.00% in 2012 to 7.47% by 2019. This improvement was driven by substantial growth in net income, which rose from 703.6 million in 2012 to 1.56 billion in 2019, while the total asset base remained relatively stable, hovering around 18 billion to 20 billion.
- Anomalous Downturn and Rebound (2020–2021)
- The year 2020 experienced a severe anomaly where net income fell to a loss of 1.21 billion, resulting in a negative ROA of -6.65%. However, the following year showed a rapid rebound, with net income returning to 1.13 billion and ROA recovering to 5.33%, suggesting that the 2020 loss was an isolated event rather than a systemic decline in asset productivity.
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Comparison to Competitors
Ecolab Inc., ROA, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2021 | 5.33% | 4.69% | 9.02% |
| Dec 31, 2020 | -6.65% | 2.83% | 9.95% |
| Dec 31, 2019 | 7.47% | 2.64% | 7.52% |
| Dec 31, 2018 | 7.12% | 4.69% | 5.79% |
| Dec 31, 2017 | 7.56% | 6.10% | 8.88% |
| Dec 31, 2016 | 6.71% | 7.76% | 16.77% |
| Dec 31, 2015 | 5.38% | 8.44% | 18.20% |
| Dec 31, 2014 | 6.18% | 8.55% | 15.17% |
| Dec 31, 2013 | 4.93% | 8.66% | 11.79% |
| Dec 31, 2012 | 4.00% | 9.35% | 10.12% |
| Dec 31, 2011 | 2.54% | 10.22% | 8.45% |
| Dec 31, 2010 | 10.88% | 7.82% | 8.95% |
| Dec 31, 2009 | 8.31% | 8.76% | 10.08% |
| Dec 31, 2008 | 9.42% | 9.28% | 10.80% |
| Dec 31, 2007 | 9.05% | 8.80% | 12.68% |
| Dec 31, 2006 | 8.34% | 8.90% | 11.53% |
| Dec 31, 2005 | 8.41% | 6.92% | 10.60% |
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., ROA, long-term trends, comparison to sector (chemicals)
| Ecolab Inc. | Chemicals | |
|---|---|---|
| Dec 31, 2021 | 5.33% | 5.56% |
| Dec 31, 2020 | -6.65% | 4.17% |
| Dec 31, 2019 | 7.47% | 3.57% |
| Dec 31, 2018 | 7.12% | 4.88% |
| Dec 31, 2017 | 7.56% | 7.47% |
| Dec 31, 2016 | 6.71% | 10.09% |
| Dec 31, 2015 | 5.38% | 10.79% |
| Dec 31, 2014 | 6.18% | 10.04% |
| Dec 31, 2013 | 4.93% | 9.41% |
| Dec 31, 2012 | 4.00% | 9.55% |
| Dec 31, 2011 | 2.54% | 9.79% |
| Dec 31, 2010 | 10.88% | 8.11% |
| Dec 31, 2009 | 8.31% | 9.07% |
| Dec 31, 2008 | 9.42% | 9.66% |
| Dec 31, 2007 | 9.05% | 9.83% |
| Dec 31, 2006 | 8.34% | 9.72% |
| Dec 31, 2005 | 8.41% | 8.00% |
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., ROA, long-term trends, comparison to industry (materials)
| Ecolab Inc. | Materials | |
|---|---|---|
| Dec 31, 2021 | 5.33% | 6.65% |
| Dec 31, 2020 | -6.65% | 3.40% |
| Dec 31, 2019 | 7.47% | 2.43% |
| Dec 31, 2018 | 7.12% | 5.23% |
| Dec 31, 2017 | 7.56% | 6.22% |
| Dec 31, 2016 | 6.71% | -2.40% |
| Dec 31, 2015 | 5.38% | -13.63% |
| Dec 31, 2014 | 6.18% | 1.48% |
| Dec 31, 2013 | 4.93% | 5.73% |
| Dec 31, 2012 | 4.00% | 8.98% |
| Dec 31, 2011 | 2.54% | 12.44% |
| Dec 31, 2010 | 10.88% | 12.03% |
| Dec 31, 2009 | 8.31% | 9.94% |
| Dec 31, 2008 | 9.42% | -22.98% |
| Dec 31, 2007 | 9.05% | 8.10% |
| Dec 31, 2006 | 8.34% | 14.06% |
| Dec 31, 2005 | 8.41% | 10.70% |
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).