Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Ecolab Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Ecolab Inc. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Ecolab Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Ecolab Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Ecolab Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Ecolab Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Ecolab Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Ecolab Inc. financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Ecolab Inc. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Ecolab Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Equity
Ecolab Inc., debt to equity 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) | ||||||
| Short-term debt | 411,000) | 17,300) | 380,600) | 743,600) | 564,400) | |
| Long-term debt, excluding current maturities | 8,347,200) | 6,669,300) | 5,973,500) | 6,301,600) | 6,758,300) | |
| Total debt | 8,758,200) | 6,686,600) | 6,354,100) | 7,045,200) | 7,322,700) | |
| Total Ecolab shareholders’ equity | 7,224,200) | 6,166,500) | 8,685,300) | 8,003,200) | 7,618,500) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.21 | 1.08 | 0.73 | 0.88 | 0.96 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Linde plc | 0.33 | 0.34 | 0.28 | — | — | |
| Debt to Equity, Industry | ||||||
| Materials | 0.38 | 0.41 | 0.38 | — | — | |
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
Debt to equity = Total debt ÷ Total Ecolab shareholders’ equity
= 8,758,200 ÷ 7,224,200 = 1.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Ecolab Inc. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Ecolab Inc., debt to equity (including operating lease liability) 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) | ||||||
| Short-term debt | 411,000) | 17,300) | 380,600) | 743,600) | 564,400) | |
| Long-term debt, excluding current maturities | 8,347,200) | 6,669,300) | 5,973,500) | 6,301,600) | 6,758,300) | |
| Total debt | 8,758,200) | 6,686,600) | 6,354,100) | 7,045,200) | 7,322,700) | |
| Current operating lease liabilities | 115,100) | 125,600) | 153,200) | —) | —) | |
| Noncurrent operating lease liabilities | 282,600) | 300,500) | 425,200) | —) | —) | |
| Total debt (including operating lease liability) | 9,155,900) | 7,112,700) | 6,932,500) | 7,045,200) | 7,322,700) | |
| Total Ecolab shareholders’ equity | 7,224,200) | 6,166,500) | 8,685,300) | 8,003,200) | 7,618,500) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.27 | 1.15 | 0.80 | 0.88 | 0.96 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.35 | 0.36 | 0.30 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Materials | 0.39 | 0.42 | 0.40 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Ecolab shareholders’ equity
= 9,155,900 ÷ 7,224,200 = 1.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Ecolab Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Ecolab Inc., debt to capital 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) | ||||||
| Short-term debt | 411,000) | 17,300) | 380,600) | 743,600) | 564,400) | |
| Long-term debt, excluding current maturities | 8,347,200) | 6,669,300) | 5,973,500) | 6,301,600) | 6,758,300) | |
| Total debt | 8,758,200) | 6,686,600) | 6,354,100) | 7,045,200) | 7,322,700) | |
| Total Ecolab shareholders’ equity | 7,224,200) | 6,166,500) | 8,685,300) | 8,003,200) | 7,618,500) | |
| Total capital | 15,982,400) | 12,853,100) | 15,039,400) | 15,048,400) | 14,941,200) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.55 | 0.52 | 0.42 | 0.47 | 0.49 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Linde plc | 0.25 | 0.26 | 0.22 | — | — | |
| Debt to Capital, Industry | ||||||
| Materials | 0.27 | 0.29 | 0.28 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 8,758,200 ÷ 15,982,400 = 0.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Ecolab Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Ecolab Inc., debt to capital (including operating lease liability) 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) | ||||||
| Short-term debt | 411,000) | 17,300) | 380,600) | 743,600) | 564,400) | |
| Long-term debt, excluding current maturities | 8,347,200) | 6,669,300) | 5,973,500) | 6,301,600) | 6,758,300) | |
| Total debt | 8,758,200) | 6,686,600) | 6,354,100) | 7,045,200) | 7,322,700) | |
| Current operating lease liabilities | 115,100) | 125,600) | 153,200) | —) | —) | |
| Noncurrent operating lease liabilities | 282,600) | 300,500) | 425,200) | —) | —) | |
| Total debt (including operating lease liability) | 9,155,900) | 7,112,700) | 6,932,500) | 7,045,200) | 7,322,700) | |
| Total Ecolab shareholders’ equity | 7,224,200) | 6,166,500) | 8,685,300) | 8,003,200) | 7,618,500) | |
| Total capital (including operating lease liability) | 16,380,100) | 13,279,200) | 15,617,800) | 15,048,400) | 14,941,200) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.56 | 0.54 | 0.44 | 0.47 | 0.49 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.26 | 0.27 | 0.23 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Materials | 0.28 | 0.30 | 0.29 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,155,900 ÷ 16,380,100 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Ecolab Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Ecolab Inc., debt to assets 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) | ||||||
| Short-term debt | 411,000) | 17,300) | 380,600) | 743,600) | 564,400) | |
| Long-term debt, excluding current maturities | 8,347,200) | 6,669,300) | 5,973,500) | 6,301,600) | 6,758,300) | |
| Total debt | 8,758,200) | 6,686,600) | 6,354,100) | 7,045,200) | 7,322,700) | |
| Total assets | 21,206,400) | 18,126,000) | 20,869,100) | 20,074,500) | 19,962,400) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.41 | 0.37 | 0.30 | 0.35 | 0.37 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Linde plc | 0.18 | 0.18 | 0.16 | — | — | |
| Debt to Assets, Industry | ||||||
| Materials | 0.18 | 0.19 | 0.18 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 8,758,200 ÷ 21,206,400 = 0.41
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Ecolab Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Ecolab Inc., debt to assets (including operating lease liability) 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) | ||||||
| Short-term debt | 411,000) | 17,300) | 380,600) | 743,600) | 564,400) | |
| Long-term debt, excluding current maturities | 8,347,200) | 6,669,300) | 5,973,500) | 6,301,600) | 6,758,300) | |
| Total debt | 8,758,200) | 6,686,600) | 6,354,100) | 7,045,200) | 7,322,700) | |
| Current operating lease liabilities | 115,100) | 125,600) | 153,200) | —) | —) | |
| Noncurrent operating lease liabilities | 282,600) | 300,500) | 425,200) | —) | —) | |
| Total debt (including operating lease liability) | 9,155,900) | 7,112,700) | 6,932,500) | 7,045,200) | 7,322,700) | |
| Total assets | 21,206,400) | 18,126,000) | 20,869,100) | 20,074,500) | 19,962,400) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.43 | 0.39 | 0.33 | 0.35 | 0.37 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.19 | 0.20 | 0.17 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Materials | 0.18 | 0.20 | 0.19 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,155,900 ÷ 21,206,400 = 0.43
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Ecolab Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
Ecolab Inc., financial leverage 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) | ||||||
| Total assets | 21,206,400) | 18,126,000) | 20,869,100) | 20,074,500) | 19,962,400) | |
| Total Ecolab shareholders’ equity | 7,224,200) | 6,166,500) | 8,685,300) | 8,003,200) | 7,618,500) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.94 | 2.94 | 2.40 | 2.51 | 2.62 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Linde plc | 1.85 | 1.86 | 1.76 | — | — | |
| Financial Leverage, Industry | ||||||
| Materials | 2.13 | 2.13 | 2.10 | — | — | |
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
Financial leverage = Total assets ÷ Total Ecolab shareholders’ equity
= 21,206,400 ÷ 7,224,200 = 2.94
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Ecolab Inc. financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
Interest Coverage
Ecolab Inc., interest coverage 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) | ||||||
| Net income (loss) attributable to Ecolab | 1,129,900) | (1,205,100) | 1,558,900) | 1,429,100) | 1,508,400) | |
| Add: Net income attributable to noncontrolling interest | 14,100) | 17,400) | 17,300) | 11,200) | 14,000) | |
| Less: Net loss from discontinued operations, net of tax | —) | (2,172,500) | —) | —) | —) | |
| Add: Income tax expense | 270,200) | 176,600) | 322,700) | 364,300) | 242,400) | |
| Add: Interest expense | 230,600) | 304,800) | 215,300) | 237,200) | 274,600) | |
| Earnings before interest and tax (EBIT) | 1,644,800) | 1,466,200) | 2,114,200) | 2,041,800) | 2,039,400) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 7.13 | 4.81 | 9.82 | 8.61 | 7.43 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Linde plc | 45.60 | 21.41 | 21.27 | — | — | |
| Interest Coverage, Industry | ||||||
| Materials | 15.26 | 9.00 | 7.67 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 1,644,800 ÷ 230,600 = 7.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Ecolab Inc. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Fixed Charge Coverage
Ecolab Inc., fixed charge coverage 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) | ||||||
| Net income (loss) attributable to Ecolab | 1,129,900) | (1,205,100) | 1,558,900) | 1,429,100) | 1,508,400) | |
| Add: Net income attributable to noncontrolling interest | 14,100) | 17,400) | 17,300) | 11,200) | 14,000) | |
| Less: Net loss from discontinued operations, net of tax | —) | (2,172,500) | —) | —) | —) | |
| Add: Income tax expense | 270,200) | 176,600) | 322,700) | 364,300) | 242,400) | |
| Add: Interest expense | 230,600) | 304,800) | 215,300) | 237,200) | 274,600) | |
| Earnings before interest and tax (EBIT) | 1,644,800) | 1,466,200) | 2,114,200) | 2,041,800) | 2,039,400) | |
| Add: Operating lease cost | 179,400) | 183,800) | 219,400) | 210,000) | 239,000) | |
| Earnings before fixed charges and tax | 1,824,200) | 1,650,000) | 2,333,600) | 2,251,800) | 2,278,400) | |
| Interest expense | 230,600) | 304,800) | 215,300) | 237,200) | 274,600) | |
| Operating lease cost | 179,400) | 183,800) | 219,400) | 210,000) | 239,000) | |
| Fixed charges | 410,000) | 488,600) | 434,700) | 447,200) | 513,600) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 4.45 | 3.38 | 5.37 | 5.04 | 4.44 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Linde plc | 13.02 | 7.79 | 6.92 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Materials | 10.86 | 6.54 | 5.49 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,824,200 ÷ 410,000 = 4.45
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Ecolab Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |