Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
- Aggregate Accruals
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Profitability Ratios (Summary)
Ecolab Inc., profitability ratios (quarterly data)
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).
- Gross Profit Margin
- The gross profit margin exhibited a declining trend starting from 46.49% in March 2018, gradually decreasing to 40.19% by December 2021. This steady reduction suggests increasing costs of goods sold or pricing pressure affecting gross profitability over the observed periods.
- Operating Profit Margin
- The operating profit margin also demonstrated a downward trend from 14.6% in March 2018 to 12.55% by December 2021, with some minor fluctuations along the way. This decline indicates growing operating expenses or other operational challenges impacting earnings before interest and taxes.
- Net Profit Margin
- Net profit margin followed a similar trajectory to operating margin until early 2020, where it sharply declined into negative territory reaching as low as -11.11% by December 2020. This negative phase suggests considerable earnings losses likely caused by extraordinary expenses or adverse economic conditions during this period. The margin recovered strongly afterwards, returning to positive values around 8.87% by December 2021.
- Return on Equity (ROE)
- The return on equity was relatively stable around 19-20% from March 2018 through December 2019, before plunging to negative values during 2020, reaching nearly -20.58% by the end of that year. This negative performance implies significant shareholder value erosion during the crisis period. ROE rebounded positively in 2021, ending at approximately 15.64% in December, suggesting renewed profitability and improved equity utilization.
- Return on Assets (ROA)
- Return on assets remained relatively steady between 7% and 8% prior to 2020, then dipped into negative territory during 2020, with the lowest point at -7.11%. This decline highlights the impact on asset efficiency and profitability during the downturn. The metric recovered in 2021, though it did not fully return to pre-2020 levels, closing at 5.33% by December 2021.
- Summary
- The financial ratios reveal a consistent weakening in profitability margins and returns from 2018 to 2019, followed by a sharp deterioration throughout 2020, likely reflecting adverse external factors impacting earnings significantly. Beginning in 2021, there were clear signs of recovery across all the measured profitability and return metrics, although some, such as ROA and ROE, remained below their earlier peak figures. Overall, the data portrays a company facing significant challenges in 2020 with gradual recovery thereafter.
Return on Sales
Return on Investment
Gross Profit Margin
Ecolab Inc., gross profit margin 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) | ||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross profitQ4 2021
+ Gross profitQ3 2021
+ Gross profitQ2 2021
+ Gross profitQ1 2021)
÷ (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The data reveals several notable trends across the reported periods regarding gross profit, net sales, and gross profit margin.
- Gross Profit
- Gross profit exhibits a fluctuating pattern over the time periods. Initially, from March 2017 to December 2017, gross profit increased steadily from 1,470,100 to 1,700,000 thousand US dollars. However, starting in 2018, there is a noticeable decline, with figures generally trending downward through to March 2020, where the gross profit reached a low of 1,300,400 thousand US dollars. A temporary rebound is observed during the last quarters of 2020 and early 2021, with gross profit rising again before a slight decrease towards the end of 2021.
- Net Sales
- Net sales follow a somewhat similar trajectory to gross profit with growth from March 2017 (3,161,600 thousand US dollars) to December 2017 (3,650,700 thousand US dollars). After peaking in late 2017, net sales display a downward trend through to mid-2020, falling to 2,685,700 thousand US dollars as of June 2020. Subsequently, net sales recover gradually, exhibiting an increasing tendency through to the final quarter of 2021, reaching 3,364,600 thousand US dollars.
- Gross Profit Margin
- Gross profit margin data is only available beginning from March 2018. The margin starts at 46.49% and generally trends downward over the subsequent periods. From the end of 2018 through to 2021, it progressively declines from around 42.58% to about 40.19% by the end of 2021. This decline suggests a decrease in profitability relative to net sales over time, indicating potential increases in cost of goods sold or pricing pressures affecting the gross margin.
In summary, the company experienced growth in both gross profit and net sales during the early period analyzed, followed by a period of decline around 2018 through mid-2020. Thereafter, a recovery phase is observable, although gross profit margin steadily decreased throughout, signaling potential challenges in maintaining profitability levels despite recovering sales volumes.
Operating Profit Margin
Ecolab Inc., operating profit margin 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) | ||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating incomeQ4 2021
+ Operating incomeQ3 2021
+ Operating incomeQ2 2021
+ Operating incomeQ1 2021)
÷ (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data over multiple quarters indicates several notable trends in operating income, net sales, and operating profit margin.
- Operating Income
- Operating income demonstrated fluctuating performance across the quarters. From the first quarter of 2017 through the end of 2017, there was a general upward trend in operating income, rising from 373,300 thousand US dollars to 627,700 thousand US dollars. However, in 2018, operating income showed moderate variability, with values oscillating between approximately 354,300 and 581,900 thousand US dollars. A similar pattern continued during 2019, maintaining figures generally in the mid-300,000 to high 500,000 range. In 2020, there was a significant decline in operating income during the second quarter, reaching as low as 192,000 thousand US dollars, likely reflecting external economic challenges, but recovery was noted in the following quarters. By the end of 2021, operating income had somewhat stabilized, albeit at a lower range than the peak observed in 2017.
- Net Sales
- Net sales remained relatively stable with an overall slight upward trajectory from 2017 through 2019, fluctuating between roughly 3,161,600 and 3,823,600 thousand US dollars. This period showed growth, peaking near the end of 2019. However, in 2020, net sales notably dropped, especially in the second quarter, reaching a low point of 2,685,700 thousand US dollars. Post this decline, there was a gradual recovery throughout 2020 and continuing into 2021, with net sales increasing steadily and nearing pre-2020 levels by the end of 2021.
- Operating Profit Margin
- The operating profit margin data, available from the end of 2017 onward, reveals a declining trend over the four-year span. Starting from a margin of 14.6% in late 2017, the margin exhibited a gradual decrease, hovering around 13.2% through 2018 and 2019. The margin further declined during 2020, reaching a low point near 11.3% in the fourth quarter. In 2021, slight improvement was observed, with margins rising again toward figures around 12.5% by the end of the year, although still below earlier levels.
Overall, the data reflects a business experiencing growth up until 2019, followed by a sharp contraction in 2020, likely connected to broader market disruptions. Recovery patterns are apparent in 2021, though operating income and profit margins have not yet returned to previously observed peaks. The fluctuations in net sales and operating income suggest sensitivity to economic cycles, while the operating profit margin trend indicates some pressure on profitability during the period analyzed.
Net Profit Margin
Ecolab Inc., net profit margin 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 income (loss) attributable to Ecolab | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, 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 profit margin = 100
× (Net income (loss) attributable to EcolabQ4 2021
+ Net income (loss) attributable to EcolabQ3 2021
+ Net income (loss) attributable to EcolabQ2 2021
+ Net income (loss) attributable to EcolabQ1 2021)
÷ (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income Trend
- Net income attributable to the company exhibits a generally positive trajectory from March 2017 through December 2019, reaching a peak of 565,900 thousand US dollars in December 2017 and maintaining values above 200,000 thousand US dollars across most quarters in this period. However, a marked decline occurs in the first half of 2020, culminating in a significant negative net income of -2,035,000 thousand US dollars in June 2020. Subsequent quarters show a recovery trend, with net income returning to positive territory from September 2020 onward, though at levels generally lower than the peak recorded in 2017 and 2018.
- Net Sales Pattern
- Net sales display an overall stable but slightly fluctuating pattern over the period from 2017 to 2021. Sales volumes start at approximately 3,161,600 thousand US dollars in March 2017, gradually increasing to a high near 3,820,600 thousand US dollars by December 2019. A sharp decline is observed in the first half of 2020, with sales dropping to 2,685,700 thousand US dollars in June 2020, aligning with the period of net income decrease. Following this downturn, sales partially recover by the end of 2021, reaching levels close to 3,364,600 thousand US dollars in the final recorded quarter.
- Net Profit Margin Fluctuations
- The net profit margin remains relatively steady and positive from March 2018 through December 2019, averaging around 10%, which indicates consistent profitability during this timeframe. In early 2020, a dramatic decline occurs, with margins turning negative and reaching a low of approximately -11.11% in December 2020, consistent with the recorded net loss in that period. Following this downturn, the net profit margin recovers substantially, returning to positive figures near 9% by the end of 2021, though it does not fully match the pre-2020 levels.
- Overall Insights
- The financial data reflects a stable growth phase from 2017 through 2019, with increasing net sales, net income, and consistent profit margins. The onset of 2020 marks a significant adverse shift, with both net sales and net income declining markedly, alongside negative profit margins, signaling a period of financial distress possibly related to external economic factors. Despite this, the recovery in the latter part of 2020 and into 2021 suggests an improvement in operational performance, though not a full return to previous margin or income peaks. The correlation between sales and income trends indicates that sales contraction heavily impacted profitability during the downturn, and the partial recovery aligns with a gradual market or operational rebound.
Return on Equity (ROE)
Ecolab Inc., ROE 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 income (loss) attributable to Ecolab | ||||||||||||||||||||||||||
| Total Ecolab shareholders’ equity | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net income (loss) attributable to EcolabQ4 2021
+ Net income (loss) attributable to EcolabQ3 2021
+ Net income (loss) attributable to EcolabQ2 2021
+ Net income (loss) attributable to EcolabQ1 2021)
÷ Total Ecolab shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in net income, shareholders’ equity, and return on equity (ROE) over the analyzed quarters.
- Net Income
-
Net income attributable to the company generally fluctuates quarterly but exhibits a pattern of growth until the first quarter of 2020. It starts around US$253.5 million in March 2017, peaks multiple times (such as US$565.9 million in December 2017), and remains relatively stable through 2018 and 2019, with quarterly net incomes mostly ranging between approximately US$280 million and US$460 million.
However, a sharp and unprecedented decline occurs in June 2020, with net income dropping to a significant loss of about -US$2.035 billion. This loss sharply contrasts with prior trends and likely reflects extraordinary events impacting that quarter. Following this dip, net income quickly recovers to positive values from September 2020 onward, stabilizing again in the US$190 million to US$320 million range in 2021, albeit not reaching the prior peak levels observed before 2020.
- Total Shareholders’ Equity
-
Total shareholders’ equity demonstrates a consistent upward trend from approximately US$6.81 billion in March 2017 to roughly US$8.82 billion by March 2020. This steady increase indicates ongoing capitalization gains, retained earnings accumulation, or other equity enhancements.
There is a notable drop in June 2020, decreasing to roughly US$5.86 billion, coinciding with the sharp net income loss in the same period. Subsequent quarters show a gradual recovery and sustained growth in equity, reaching nearly US$7.22 billion by December 2021, although levels remain below the pre-June 2020 peak.
- Return on Equity (ROE)
-
ROE remains consistently strong and stable from March 2018 through March 2019, hovering near 20%. It then slightly declines but stays in the high teens through December 2019 and March 2020 (approximately 17.5% to 18%).
A precipitous drop occurs following March 2020, with ROE turning sharply negative from June 2020 through December 2020, reaching nearly -20.6%. This mirrors the extraordinary net income loss and equity reduction in this period, indicating extreme operational or financial challenges impacting profitability relative to equity.
From March 2021 forward, ROE returns to positive territory, stabilizing between approximately 15.6% and 16.3%, which, while respectable, is lower than the earlier high levels. This suggests restoration of profitability but possibly under different operating conditions or capital structures.
Overall, the data reflects a period of growth and strong financial performance up to early 2020, followed by a substantial downturn mid-2020 with recovery in subsequent quarters. The severe disruption in mid-2020 is evident across all major financial metrics, signifying an extraordinary event or impact on the company’s operations and financial health during that timeframe. Post-disturbance, the company shows signs of recovery but has not yet returned to the previous peak financial metrics by the end of 2021.
Return on Assets (ROA)
Ecolab Inc., ROA calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income (loss) attributable to Ecolab | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net income (loss) attributable to EcolabQ4 2021
+ Net income (loss) attributable to EcolabQ3 2021
+ Net income (loss) attributable to EcolabQ2 2021
+ Net income (loss) attributable to EcolabQ1 2021)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net income (loss) attributable to Ecolab
- The net income exhibits significant fluctuation over the periods analyzed. From early 2017 through the end of 2019, net income generally demonstrates an upward trend with some seasonal variation, peaking notably around the fourth quarters of 2017 and 2018. However, in the first half of 2020, there is a striking decline with a substantial loss recorded in June 2020. This disruption interrupts the prior growth pattern, followed by a recovery beginning in the third quarter of 2020 and continuing with moderate gains through 2021. Although the net income has not reached the peak levels seen in late 2019, the positive trend in 2021 indicates a partial recovery.
- Total assets
- Total assets remain relatively stable from 2017 through the end of 2019, growing modestly over the period. In early 2020, there is a significant increase in assets, followed by a sharp decline mid-2020 that brings total assets back to a level comparable to prior years. The asset base then stabilizes around this level with some fluctuations during 2021 and ends the last recorded quarter of 2021 with a substantial increase, reflecting a possible asset acquisition or revaluation event near year-end 2021.
- Return on Assets (ROA)
- ROA data, available from the first quarter of 2018 onwards, shows consistent positive returns through 2019, with values generally ranging from approximately 7% to 8%, indicating efficient asset utilization during this time. The first half of 2020 sees a sharp and severe downturn in ROA, turning negative and bottoming out in the fourth quarter of 2020, confirming significant operational challenges during this period. In 2021, ROA returns to positive territory, though at lower levels than the pre-2020 period, with values fluctuating between roughly 5% and 6.3%, suggesting recovery but not full restoration of prior profitability levels.
- Overall analysis
- The data indicates a stable and growing financial position from 2017 through 2019, characterized by increasing net income, stable asset growth, and strong ROA performance. The year 2020 marks a period of financial stress, as shown by a sharp net income loss, decreased total assets, and negative ROA, likely due to extraordinary or adverse economic conditions. Subsequently, the company exhibits signs of recovery throughout 2021, demonstrated by returning profitability and asset growth, though profitability metrics remain subdued relative to the pre-2020 years. The fluctuations point to a resilient but challenged business environment within this timeframe.