Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
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Long-term Activity Ratios (Summary)
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
The analysis of the quarterly financial ratios reveals several notable trends over the observed periods.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio generally exhibits a stable pattern with values fluctuating in the range of approximately 3.68 to 4.25. After an initial consistent performance around 3.7 to 3.85 from early 2018 through mid-2019, the ratio experienced a peak of 4.25 in the third quarter of 2020, followed by a slight decline and subsequent moderate fluctuations towards the end of 2021. This suggests a period of enhanced efficiency in generating sales from fixed assets during 2020, though the ratio returned to levels closer to earlier periods afterwards.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted ratio shows lower values compared to the standard net fixed asset turnover, with figures mostly between 3.22 and 3.73. A distinctive dip is observed starting in early 2019, descending from approximately 3.82 to a low near 3.22 by early 2020, corresponding with increased accounting for operating leases. Subsequently, the ratio rises again through 2020 and 2021, but does not fully recover to its earlier high, peaking around 3.73 in the third quarter of 2020. This indicates the impact of recognizing right-of-use assets on fixed asset utilization metrics.
- Total Asset Turnover
- The total asset turnover remains relatively low, with ratios mostly between 0.60 and 0.74. A slight increase is seen from early 2018 through late 2019, peaking around 0.73-0.74. However, from early 2020 onward, the ratio declines to lower levels around 0.60-0.65, indicating reduced efficiency in using total assets to generate revenue during that period. This downward trend may reflect changes in asset base or revenue generation challenges.
- Equity Turnover
- The equity turnover ratio demonstrates variability over the timeline, with values primarily ranging from 1.63 to 2.28. A notable surge occurs in the third quarter of 2020, reaching 2.28, the highest in the observed data. Prior to and after this spike, the ratio remains stable within the range of roughly 1.7 to 1.86, gradually declining toward the end of 2021 to approximately 1.76. This spike suggests a temporary increase in revenue generation relative to shareholders' equity during the 2020 period.
In summary, the data indicates robust utilization of fixed assets through 2019 with improvements in 2020 followed by some normalization. Inclusion of right-of-use assets reduces the fixed asset turnover metrics, reflecting the accounting changes related to leases. Total asset turnover shows a modest decline post-2019, perhaps due to asset growth or revenue softness. The equity turnover ratio spikes notably in 2020, suggesting a transient boost in equity efficiency during that year, before reverting closer to prior levels. Overall, the ratios collectively point toward fluctuations in operational efficiency and capital utilization influenced by external factors and accounting adjustments during the timeframe examined.
Net Fixed Asset Turnover
Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
Property, plant and equipment, net | ||||||||||||||||||||||||||
Long-term Activity Ratio | ||||||||||||||||||||||||||
Net fixed asset turnover1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
Linde plc | ||||||||||||||||||||||||||
Sherwin-Williams Co. |
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Net fixed asset turnover
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
-
Net sales demonstrated moderate fluctuations throughout the analyzed periods. Starting at approximately $3,161.6 million in March 2017, net sales generally trended upward until reaching a peak near $3,823.6 million at the end of December 2019. However, a significant decline occurred in early 2020, dropping to around $3,020.6 million in March 2020 and further decreasing to approximately $2,685.7 million by June 2020. This downward trend reversed partly in the subsequent quarters of 2020 and throughout 2021, with net sales recovering to approximately $3,364.6 million by December 2021. Overall, net sales exhibited a cyclical pattern with a notable dip in 2020, likely linked to external market or economic challenges.
- Property, Plant and Equipment, Net
-
The net value of property, plant and equipment saw a mostly stable trend with slight upward movement from March 2017 ($3,424.9 million) to December 2019 ($3,954.9 million). However, there was a marked decrease beginning in early 2020, dropping sharply to approximately $3,139.0 million by June 2020. Following this, the metric remained relatively stable but slightly declined through 2020 and most of 2021, reaching around $3,068.5 million in September 2021. A recovery trend was observed at the end of 2021, closing at about $3,288.5 million in December 2021. This pattern indicates a possible disposal, impairment, or decreased investment in fixed assets during the 2020 period with gradual restoration thereafter.
- Net Fixed Asset Turnover Ratio
-
The net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate sales, showed consistent values primarily between 3.7 and 3.9 in most quarters. Starting at approximately 3.73 in December 2017, it hovered near 3.8 through 2018 and 2019. A noticeable increase was observed in September 2020, peaking to about 4.25, indicating improved efficiency despite the dip in asset base and sales during the same period. Post-peak, the ratio stabilized to levels between 3.77 and 4.05 by the end of 2021, reflecting a steady performance. This suggests effective management of fixed assets to sustain sales generation, particularly during asset value contractions.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Ecolab Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
Property, plant and equipment, net | ||||||||||||||||||||||||||
Operating lease assets | ||||||||||||||||||||||||||
Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||||||||||||||||||||||
Long-term Activity Ratio | ||||||||||||||||||||||||||
Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||
Sherwin-Williams Co. |
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Over the observed quarters, net sales demonstrate a general cyclical pattern with seasonal increases, particularly visible in the third and fourth quarters of each year. From March 2017 to December 2019, net sales steadily increased, peaking around 3,826,000 thousand US dollars by the end of 2019. However, starting in the first quarter of 2020, a significant decline is evident, reaching a low point of approximately 2,685,700 thousand US dollars in June 2020. This represents a substantial contraction compared to previous years. Following this trough, net sales exhibit a gradual recovery throughout late 2020 and into 2021, though levels as of the fourth quarter 2021 remain below the pre-2020 peak.
- Property, Plant, and Equipment, Net (including operating lease, right-of-use asset)
- The net value of property, plant, and equipment shows a generally stable to slightly increasing trend until the end of 2019, peaking around 4,532,400 thousand US dollars in December 2019. A notable sharp decrease occurs during the first two quarters of 2020, falling to approximately 3,578,800 thousand US dollars. Post this decline, values remain relatively steady, with minor fluctuations, and begin to show a slight rebound towards the end of 2021 at approximately 3,685,300 thousand US dollars. This movement suggests an asset base contraction concurrent with the sales decline in early 2020, followed by stabilization and gradual recovery.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio remains relatively consistent throughout the periods with values fluctuating between approximately 3.22 and 3.85. The ratio was higher in 2017 and 2018, peaking near 3.85 by the end of 2018, indicating efficient use of fixed assets to generate sales during that timeframe. The ratio declined slightly in 2019, correlating with the expanding asset base. During 2020, despite a drop in sales and asset values, the turnover ratio rebounded to around 3.73 in March 2020 but then trended downward again. In 2021, it shows some recovery, increasing to approximately 3.61 by the third quarter before a slight decrease. Overall, turnover remains stable, suggesting consistent operational efficiency in utilizing fixed assets despite the fluctuations in sales and asset values.
Total Asset Turnover
Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||
Long-term Activity Ratio | ||||||||||||||||||||||||||
Total asset turnover1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
Linde plc | ||||||||||||||||||||||||||
Sherwin-Williams Co. |
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Total asset turnover
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net sales
- Net sales demonstrated a general fluctuating trend over the observed period. Beginning at approximately $3.16 billion in March 2017, sales increased steadily to reach just above $3.76 billion by December 2017, marking a strong upward trend in the first year. However, from 2018 onward, net sales showed some volatility; the highest quarterly sales during this period occurred in the fourth quarter of 2019 at around $3.82 billion. Following that peak, a notable decline occurred in early 2020, with the lowest point at approximately $2.69 billion in the second quarter of 2020, likely reflecting external economic disruptions. Thereafter, a recovery trend is observed in 2021, though sales had not returned to their previous peak by the end of the period, reaching roughly $3.36 billion in the fourth quarter of 2021.
- Total assets
- Total assets showed an increasing trend initially, rising steadily from about $19.22 billion in March 2017 to a peak of approximately $22.34 billion in the first quarter of 2020. However, a significant reduction is noted immediately afterward, declining sharply to around $18.08 billion by the second quarter of 2020. This sharp contraction coincides with decreases in net sales in the same timeframe, suggesting potential asset disposals or revaluations. Afterward, total assets gradually increased again, ending the period with a substantial rise to about $21.21 billion in the last quarter of 2021, indicating recovery and asset reaccumulation.
- Total asset turnover
- The total asset turnover ratio, available from the third quarter of 2017, started around 0.69 and increased moderately to 0.73 by the end of 2017, indicating improved efficiency in generating sales from the assets held. From 2018 through most of 2019, the ratio remained relatively stable in a narrow band around 0.7 to 0.71. However, in the first half of 2020, the ratio experienced a decline to 0.65 in the first quarter and further down to 0.64 by the second quarter, possibly reflecting the impact of asset base changes and reduced sales efficiency during adverse conditions. Subsequently, a slight rebound is noted, with the ratio climbing back to around 0.69 by the third quarter of 2021, before a drop to 0.6 in the last quarter, indicating some residual volatility in asset utilization efficiency.
- Overall trends and insights
- The data reveals a cyclical pattern where both net sales and total assets increased steadily until early 2020, followed by a sharp decline presumably linked to external economic factors during that period. The recovery phase starts mid-2020 and continues into 2021, although net sales have not fully revisited previous highs. The total asset turnover ratio largely reflects these dynamics, with initial improvements in asset efficiency, a dip during the downturn, and partial recovery afterward. The fluctuations in both the asset base and sales figures suggest a reactive approach to changing market conditions, with efforts to balance asset levels and sales generation capacity following a period of stress.
Equity Turnover
Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||
Total Ecolab shareholders’ equity | ||||||||||||||||||||||||||
Long-term Activity Ratio | ||||||||||||||||||||||||||
Equity turnover1 | ||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||
Equity Turnover, Competitors2 | ||||||||||||||||||||||||||
Linde plc | ||||||||||||||||||||||||||
Sherwin-Williams Co. |
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Equity turnover
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ Total Ecolab shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Over the analyzed periods, net sales exhibited a general pattern of seasonal fluctuation with a notable annual cycle. Typically, the sales figures peaked towards the end of each calendar year (December quarters), followed by a decline in the first quarter of the subsequent year. For example, in the 2017 fiscal year, net sales rose from $3,161,600 thousand in March to $3,650,700 thousand in December before dropping to $3,470,900 thousand in March 2018. This pattern persisted through subsequent years, indicating a consistent seasonal influence on revenue.
- A downward trend can be observed starting in 2020, where net sales declined sharply from $3,823,600 thousand in December 2019 to $2,680,700 thousand in June 2020. This decrease likely reflects external adverse factors impacting sales during that period. While some recovery is evident in the following quarters of 2020 and into 2021, net sales remained below pre-2020 levels, fluctuating around $3,000,000 thousand to $3,364,600 thousand by December 2021.
- Total Ecolab Shareholders’ Equity
- Shareholders’ equity exhibited a steady upward trend from March 2017 through December 2019, increasing from approximately $6,809,400 thousand to about $8,685,300 thousand. This growth indicates strengthening financial foundations and potential accumulation of retained earnings or issued equity during this period.
- Beginning in March 2020, a significant decline is observed in shareholders’ equity, dropping from $8,822,100 thousand in March 2020 to $5,855,200 thousand in June 2020. This sharp decrease suggests material impacts, possibly attributable to write-downs, losses, or other negative equity adjustments during that quarter. Subsequently, equity rebounded steadily throughout the remainder of 2020 and into 2021, reaching $7,224,200 thousand by December 2021, approaching pre-2020 levels but not fully recovering to the prior peak.
- Equity Turnover Ratio
- The equity turnover ratio, available from the September 2017 period onward, shows a relatively stable pattern with mild fluctuations between roughly 1.63 and 1.86 over most quarters. This ratio reflects the efficiency in using shareholders’ equity to generate sales.
- An anomalous spike appears in the June 2020 quarter, where the ratio jumps to 2.28 from a previous 1.63 in March 2020. This increase is likely driven by the sharp decline in equity during the same period, while sales, although also decreased, did not fall proportionally as much, temporarily increasing the turnover ratio.
- After this peak, the equity turnover ratio gradually normalizes, declining to approximately 1.76 by December 2021. This trend suggests a return toward typical operational efficiency following the disruption observed in early 2020.