Ecolab Inc (ECL)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	15,741,400	15,674,600	15,634,200	15,500,500	15,320,200	15,053,000	14,764,200	14,492,700	14,187,800	13,881,200	13,532,700	13,114,800	12,733,100	12,433,800	12,131,600	11,654,600	12,351,000	13,109,300	13,908,600	14,982,300
Property, plant and equipment	US$ in thousands	—	—	—	—	—	3,868,800	3,773,300	3,743,300	3,741,600	3,260,900	3,664,800	3,285,700	3,685,300	3,447,000	3,469,400	3,078,700	3,124,900	3,146,200	3,138,900	3,920,700
Fixed asset turnover		—	—	—	—	—	3.89	3.91	3.87	3.79	4.26	3.69	3.99	3.46	3.61	3.50	3.79	3.95	4.17	4.43	3.82

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,741,400K ÷ $—K
= —

The fixed asset turnover ratio of Ecolab Inc has fluctuated over the past few years, ranging from a low of 3.46 to a high of 4.43. This ratio measures how efficiently the company is generating revenue from its investment in fixed assets. A higher ratio indicates that the company is generating more sales per dollar invested in fixed assets, reflecting better asset utilization.

Ecolab's fixed asset turnover ratio reached its peak in June 2022 at 4.43, suggesting a strong utilization of its fixed assets to generate sales. However, the ratio decreased in subsequent quarters, dipping to a low of 3.46 in December 2021. This decline could indicate problems with asset efficiency or lower sales relative to the investment in fixed assets during that period.

In the most recent data available, as of September 2023, the fixed asset turnover ratio stands at 3.89. This indicates that the company is still efficiently using its fixed assets to generate revenue, although it is lower than the peak observed in June 2022.

It is important for Ecolab to continually monitor and manage its fixed asset turnover ratio to ensure that its investments in fixed assets are yielding sufficient returns in terms of revenue generation. Any significant fluctuations in this ratio may warrant further investigation into the company's asset management and sales performance.