Return on Equity (ROE)
since 2005
Calculation
Ecolab Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Ecolab1 | ÷ | Total Ecolab shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 15.64% | = | 100 | × | 1,129,900) | ÷ | 7,224,200) |
| Dec 31, 2020 | -19.54% | = | 100 | × | (1,205,100) | ÷ | 6,166,500) |
| Dec 31, 2019 | 17.95% | = | 100 | × | 1,558,900) | ÷ | 8,685,300) |
| Dec 31, 2018 | 17.86% | = | 100 | × | 1,429,100) | ÷ | 8,003,200) |
| Dec 31, 2017 | 19.80% | = | 100 | × | 1,508,400) | ÷ | 7,618,500) |
| Dec 31, 2016 | 17.82% | = | 100 | × | 1,229,600) | ÷ | 6,901,100) |
| Dec 31, 2015 | 14.50% | = | 100 | × | 1,002,100) | ÷ | 6,909,900) |
| Dec 31, 2014 | 16.44% | = | 100 | × | 1,202,800) | ÷ | 7,315,900) |
| Dec 31, 2013 | 13.18% | = | 100 | × | 967,800) | ÷ | 7,344,300) |
| Dec 31, 2012 | 11.58% | = | 100 | × | 703,600) | ÷ | 6,077,000) |
| Dec 31, 2011 | 8.16% | = | 100 | × | 462,500) | ÷ | 5,666,700) |
| Dec 31, 2010 | 24.91% | = | 100 | × | 530,300) | ÷ | 2,129,200) |
| Dec 31, 2009 | 20.86% | = | 100 | × | 417,300) | ÷ | 2,000,900) |
| Dec 31, 2008 | 28.51% | = | 100 | × | 448,100) | ÷ | 1,571,600) |
| Dec 31, 2007 | 22.07% | = | 100 | × | 427,200) | ÷ | 1,935,700) |
| Dec 31, 2006 | 21.94% | = | 100 | × | 368,615) | ÷ | 1,680,230) |
| Dec 31, 2005 | 19.37% | = | 100 | × | 319,481) | ÷ | 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
An analysis of the financial performance from 2005 to 2021 reveals a volatile trajectory in Return on Equity (ROE), driven primarily by significant shifts in shareholders' equity and a severe earnings anomaly in 2020.
- Net Income Trends
- Net income demonstrated a consistent upward trend for the majority of the period, rising from 319.48 million US dollars in 2005 to a peak of 1.56 billion US dollars in 2018. However, this growth was interrupted by a substantial loss of 1.21 billion US dollars in 2020. A recovery followed in 2021, with net income returning to 1.13 billion US dollars.
- Shareholders' Equity Dynamics
- Shareholders' equity remained relatively stable between 2005 and 2010, followed by a sharp increase in 2011, where equity jumped from 2.13 billion US dollars to 5.67 billion US dollars. This expansion continued steadily through 2019, peaking at 8.69 billion US dollars. A contraction occurred in 2020, coinciding with the net loss, before increasing again to 7.22 billion US dollars in 2021.
- Return on Equity Analysis
- The ROE exhibited three distinct phases. From 2005 to 2010, ROE was robust, fluctuating between 19.37% and 28.51%. A significant dilution occurred in 2011, where ROE dropped to 8.16% due to the substantial increase in the equity base. Between 2012 and 2019, a period of gradual recovery was observed, with ROE climbing back toward the 18% range. The most extreme volatility occurred in 2020, with ROE falling to -19.54% as a result of the net loss, before recovering to 15.64% in 2021.
The correlation between the sharp increase in equity in 2011 and the subsequent decline in ROE suggests that the company's capital base grew faster than its net income during that interval. The recovery of ROE through 2019 indicates a successful alignment of profit growth with the expanded equity base, though the 2020 results highlight a period of significant financial instability followed by a rapid rebound in 2021.
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Comparison to Competitors
Ecolab Inc., ROE, long-term trends, comparison to competitors
| Ecolab Inc. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Dec 31, 2021 | 15.64% | 8.69% | 76.50% |
| Dec 31, 2020 | -19.54% | 5.29% | 56.23% |
| Dec 31, 2019 | 17.95% | 4.66% | 37.38% |
| Dec 31, 2018 | 17.86% | 8.49% | 29.72% |
| Dec 31, 2017 | 19.80% | 20.72% | 48.00% |
| Dec 31, 2016 | 17.82% | 29.87% | 60.30% |
| Dec 31, 2015 | 14.50% | 35.25% | 121.42% |
| Dec 31, 2014 | 16.44% | 30.13% | 86.90% |
| Dec 31, 2013 | 13.18% | 26.55% | 42.41% |
| Dec 31, 2012 | 11.58% | 27.90% | 35.22% |
| Dec 31, 2011 | 8.16% | 30.47% | 29.13% |
| Dec 31, 2010 | 24.91% | 20.63% | 28.74% |
| Dec 31, 2009 | 20.86% | 23.59% | 29.23% |
| Dec 31, 2008 | 28.51% | 30.21% | 29.70% |
| Dec 31, 2007 | 22.07% | 22.89% | 34.47% |
| Dec 31, 2006 | 21.94% | 21.70% | 28.91% |
| Dec 31, 2005 | 19.37% | 18.61% | 26.77% |
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., ROE, long-term trends, comparison to sector (chemicals)
| Ecolab Inc. | Chemicals | |
|---|---|---|
| Dec 31, 2021 | 15.64% | 12.24% |
| Dec 31, 2020 | -19.54% | 8.90% |
| Dec 31, 2019 | 17.95% | 7.19% |
| Dec 31, 2018 | 17.86% | 9.92% |
| Dec 31, 2017 | 19.80% | 31.09% |
| Dec 31, 2016 | 17.82% | 38.16% |
| Dec 31, 2015 | 14.50% | 49.47% |
| Dec 31, 2014 | 16.44% | 38.67% |
| Dec 31, 2013 | 13.18% | 29.91% |
| Dec 31, 2012 | 11.58% | 29.57% |
| Dec 31, 2011 | 8.16% | 30.18% |
| Dec 31, 2010 | 24.91% | 22.39% |
| Dec 31, 2009 | 20.86% | 24.83% |
| Dec 31, 2008 | 28.51% | 30.06% |
| Dec 31, 2007 | 22.07% | 25.88% |
| Dec 31, 2006 | 21.94% | 23.89% |
| Dec 31, 2005 | 19.37% | 21.11% |
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., ROE, long-term trends, comparison to industry (materials)
| Ecolab Inc. | Materials | |
|---|---|---|
| Dec 31, 2021 | 15.64% | 16.54% |
| Dec 31, 2020 | -19.54% | 8.40% |
| Dec 31, 2019 | 17.95% | 5.74% |
| Dec 31, 2018 | 17.86% | 12.42% |
| Dec 31, 2017 | 19.80% | 27.34% |
| Dec 31, 2016 | 17.82% | -11.75% |
| Dec 31, 2015 | 14.50% | -73.64% |
| Dec 31, 2014 | 16.44% | 5.03% |
| Dec 31, 2013 | 13.18% | 17.62% |
| Dec 31, 2012 | 11.58% | 21.12% |
| Dec 31, 2011 | 8.16% | 29.47% |
| Dec 31, 2010 | 24.91% | 30.11% |
| Dec 31, 2009 | 20.86% | 27.87% |
| Dec 31, 2008 | 28.51% | -82.36% |
| Dec 31, 2007 | 22.07% | 18.96% |
| Dec 31, 2006 | 21.94% | 33.59% |
| Dec 31, 2005 | 19.37% | 29.22% |
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).