Ecolab Inc (ECL)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	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
Revenue (ttm)	US$ in thousands	15,449,600	15,182,400	14,907,900	14,648,300	14,354,100	14,047,500	13,672,600	13,250,700	12,855,500	12,556,200	12,174,900	11,647,600	12,356,200	13,114,500	13,914,900	14,930,100	14,845,200	14,782,100	14,706,100	14,631,000
Property, plant and equipment	US$ in thousands	3,474,600	3,332,800	3,326,500	3,312,700	3,293,400	3,260,900	3,264,000	3,285,700	3,288,500	3,069,600	3,077,900	3,078,700	3,124,900	3,146,200	3,138,900	3,920,700	3,228,300	3,861,500	3,866,900	3,878,600
Fixed asset turnover		4.45	4.56	4.48	4.42	4.36	4.31	4.19	4.03	3.91	4.09	3.96	3.78	3.95	4.17	4.43	3.81	4.60	3.83	3.80	3.77

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,449,600K ÷ $3,474,600K
= 4.45

The fixed asset turnover ratio for Ecolab, Inc. demonstrates a consistent trend of improvement over the past eight quarters. The ratio increased from 3.99 in Q1 2022 to 4.41 in Q4 2023, indicating that the company is generating more revenue for each dollar invested in fixed assets.

This upward trend suggests that Ecolab is effectively utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio typically signifies better efficiency in asset management, as the company is generating more sales per dollar invested in fixed assets.

Overall, the consistent improvement in the fixed asset turnover ratio reflects positively on Ecolab's operational efficiency and ability to maximize the utilization of its fixed assets to drive revenue growth.