Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Ecolab Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.32 | 1.75 | 1.33 | 1.27 | 1.34 | |
| Quick ratio | 0.80 | 1.21 | 0.82 | 0.75 | 0.81 | |
| Cash ratio | 0.10 | 0.43 | 0.05 | 0.03 | 0.06 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Ecolab Inc. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Ecolab Inc. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Ecolab Inc. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Current Ratio
Ecolab Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 4,687,100) | 5,117,400) | 4,828,400) | 4,677,700) | 4,596,400) | |
| Current liabilities | 3,553,200) | 2,932,200) | 3,630,600) | 3,685,600) | 3,431,800) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.32 | 1.75 | 1.33 | 1.27 | 1.34 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Linde plc | 0.74 | 0.80 | 0.85 | — | — | |
| Current Ratio, Industry | ||||||
| Materials | 1.47 | 1.40 | 1.38 | — | — | |
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).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,687,100 ÷ 3,553,200 = 1.32
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Ecolab Inc. current ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Quick Ratio
Ecolab Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 359,900) | 1,260,200) | 186,400) | 114,700) | 211,400) | |
| Accounts receivable, net | 2,478,400) | 2,273,800) | 2,796,500) | 2,662,500) | 2,574,100) | |
| Total quick assets | 2,838,300) | 3,534,000) | 2,982,900) | 2,777,200) | 2,785,500) | |
| Current liabilities | 3,553,200) | 2,932,200) | 3,630,600) | 3,685,600) | 3,431,800) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.80 | 1.21 | 0.82 | 0.75 | 0.81 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Linde plc | 0.55 | 0.59 | 0.61 | — | — | |
| Quick Ratio, Industry | ||||||
| Materials | 1.02 | 0.95 | 0.76 | — | — | |
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).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,838,300 ÷ 3,553,200 = 0.80
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Ecolab Inc. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Cash Ratio
Ecolab Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 359,900) | 1,260,200) | 186,400) | 114,700) | 211,400) | |
| Total cash assets | 359,900) | 1,260,200) | 186,400) | 114,700) | 211,400) | |
| Current liabilities | 3,553,200) | 2,932,200) | 3,630,600) | 3,685,600) | 3,431,800) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.10 | 0.43 | 0.05 | 0.03 | 0.06 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Linde plc | 0.21 | 0.27 | 0.22 | — | — | |
| Cash Ratio, Industry | ||||||
| Materials | 0.72 | 0.65 | 0.41 | — | — | |
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).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 359,900 ÷ 3,553,200 = 0.10
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Ecolab Inc. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |