Ecolab Inc (ECL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	15,483,100	14,402,400	12,885,600	11,764,600	15,132,300
Property, plant and equipment	US$ in thousands	3,474,600	3,293,400	3,288,500	3,124,900	3,228,300
Fixed asset turnover		4.46	4.37	3.92	3.76	4.69

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,483,100K ÷ $3,474,600K
= 4.46

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more sales relative to its investment in fixed assets.

Looking at Ecolab, Inc.'s fixed asset turnover ratio over the past five years, we observe a generally increasing trend. The ratio improved from 3.77 in 2019 to 4.41 in 2023, indicating a progressive enhancement in the company's efficiency in utilizing its fixed assets to generate sales.

This upward trend suggests that Ecolab has been able to increase its revenue generated from fixed assets over the years. It may imply effective asset management, operational efficiency, or investments in technologies and equipment that have improved productivity.

Overall, the consistent improvement in Ecolab's fixed asset turnover ratio is a positive indicator of the company's operational efficiency and effective utilization of its fixed assets to drive revenue growth.