Stock Analysis on Net
Stock Analysis on Net

Ecolab Inc. (NYSE:ECL)

This company has been moved to the archive! The financial data has not been updated since February 25, 2022.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Ecolab Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2021 15.64% = 5.33% × 2.94
Dec 31, 2020 -19.54% = -6.65% × 2.94
Dec 31, 2019 17.95% = 7.47% × 2.40
Dec 31, 2018 17.86% = 7.12% × 2.51
Dec 31, 2017 19.80% = 7.56% × 2.62

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).

Three-Component Disaggregation of ROE

Ecolab Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 15.64% = 8.87% × 0.60 × 2.94
Dec 31, 2020 -19.54% = -10.22% × 0.65 × 2.94
Dec 31, 2019 17.95% = 10.46% × 0.71 × 2.40
Dec 31, 2018 17.86% = 9.74% × 0.73 × 2.51
Dec 31, 2017 19.80% = 10.90% × 0.69 × 2.62

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).

Five-Component Disaggregation of ROE

Ecolab Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 15.64% = 0.81 × 0.86 × 12.81% × 0.60 × 2.94
Dec 31, 2020 -19.54% = — × — × -6.14% × 0.65 × 2.94
Dec 31, 2019 17.95% = 0.83 × 0.90 × 14.07% × 0.71 × 2.40
Dec 31, 2018 17.86% = 0.80 × 0.88 × 13.84% × 0.73 × 2.51
Dec 31, 2017 19.80% = 0.86 × 0.86 × 14.64% × 0.69 × 2.62

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).

Two-Component Disaggregation of ROA

Ecolab Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 5.33% = 8.87% × 0.60
Dec 31, 2020 -6.65% = -10.22% × 0.65
Dec 31, 2019 7.47% = 10.46% × 0.71
Dec 31, 2018 7.12% = 9.74% × 0.73
Dec 31, 2017 7.56% = 10.90% × 0.69

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).

Four-Component Disaggregation of ROA

Ecolab Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2021 5.33% = 0.81 × 0.86 × 12.81% × 0.60
Dec 31, 2020 -6.65% = — × — × -6.14% × 0.65
Dec 31, 2019 7.47% = 0.83 × 0.90 × 14.07% × 0.71
Dec 31, 2018 7.12% = 0.80 × 0.88 × 13.84% × 0.73
Dec 31, 2017 7.56% = 0.86 × 0.86 × 14.64% × 0.69

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).

Disaggregation of Net Profit Margin

Ecolab Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2021 8.87% = 0.81 × 0.86 × 12.81%
Dec 31, 2020 -10.22% = — × — × -6.14%
Dec 31, 2019 10.46% = 0.83 × 0.90 × 14.07%
Dec 31, 2018 9.74% = 0.80 × 0.88 × 13.84%
Dec 31, 2017 10.90% = 0.86 × 0.86 × 14.64%

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).