Ecolab Inc (ECL)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.07 | 5.67 | 5.96 | 5.79 | 6.11 | 5.94 | 5.52 | 5.19 | 4.93 | 4.78 | 4.85 | 5.02 | 5.11 | 5.34 | 5.01 | 5.12 | 5.68 | 6.01 | 6.66 | 5.72 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 12.77 | 11.12 | 8.21 | 10.26 | 11.80 | 12.66 | 15.24 | 18.50 | 11.05 | 10.46 | 12.31 | 13.48 | 11.23 | 5.94 | 4.65 | 5.07 | 5.65 | 6.95 | 7.17 | 6.87 |
Ecolab Inc's inventory turnover ratio has exhibited fluctuations over the past few years, indicating the number of times the company's inventory is sold and replaced within a given period. The ratio has ranged from a high of 6.66 in June 2020 to a low of 4.78 in September 2022. Overall, the company's inventory turnover has been relatively stable, remaining above 5 for the most part, which suggests efficient management of inventory levels.
On the other hand, the receivables turnover ratio, which reflects how efficiently the company collects on outstanding receivables, has not been provided in the data. Without this information, it is challenging to assess Ecolab's effectiveness in converting credit sales into cash.
Similarly, detailed information on payables turnover, which measures how quickly the company pays its suppliers, is not available, making it difficult to evaluate the company's payment practices.
The working capital turnover ratio, which indicates how efficiently the company utilizes its working capital to generate sales, has displayed significant variation. The ratio has risen sharply from 5.65 in December 2020 to reach a peak of 18.50 in March 2023, before declining to 12.77 in December 2024. This indicates that Ecolab has been effectively utilizing its working capital to generate revenue, with a substantial increase in efficiency during the period.
In conclusion, while Ecolab Inc's inventory turnover and working capital turnover ratios provide insights into its operational efficiency and capital utilization, the lack of data on receivables turnover and payables turnover limits a comprehensive analysis of the company's overall working capital management and liquidity position.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.11 | 64.43 | 61.22 | 63.01 | 59.73 | 61.44 | 66.13 | 70.34 | 74.10 | 76.34 | 75.27 | 72.75 | 71.50 | 68.41 | 72.86 | 71.28 | 64.24 | 60.73 | 54.84 | 63.81 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Ecolab Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand represent the average number of days it takes for the company to sell its inventory.
- Ecolab Inc's DOH has fluctuated over the years, ranging from a low of 54.84 days to a high of 76.34 days.
- The trend shows an increase in DOH from 2020 to 2022, indicating inventory is held for a longer period before being sold.
- The decrease in DOH in 2023 and 2024 could suggest improvements in inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect cash after making a sale.
- In the provided data, DSO is not available, which could indicate that the company's accounts receivable management data was not provided.
- Without the DSO figures, it is challenging to evaluate Ecolab Inc's efficiency in collecting receivables.
3. Number of Days of Payables:
- The number of days of payables indicates the average number of days a company takes to pay its suppliers.
- Similar to DSO, data for the number of days of payables is missing, making it difficult to assess how efficiently Ecolab Inc manages its payables.
- Without this information, it is challenging to analyze the company's payment practices and liquidity position.
In conclusion, while we can analyze the trend of Days of Inventory on Hand for Ecolab Inc, the lack of data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of the company's activity ratios.
See also:
Ecolab Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.70 | 0.71 | 0.73 | 0.73 | 0.70 | 0.69 | 0.69 | 0.68 | 0.66 | 0.66 | 0.64 | 0.62 | 0.60 | 0.69 | 0.65 | 0.64 | 0.68 | 0.72 | 0.77 | 0.67 |
Ecolab Inc's fixed asset turnover ratio has shown some fluctuations over the years. It increased from 3.82 in March 2020 to a peak of 4.43 in June 2020, before declining to 3.46 in December 2021. The trend then shows some recovery, reaching 4.26 in September 2022, before stabilizing around 3.9 in the following periods.
On the other hand, the total asset turnover ratio has also varied, starting at 0.67 in March 2020, reaching its lowest point at 0.60 in December 2021, and then gradually increasing to 0.73 by June 2024. This ratio indicates how efficiently the company is using its total assets to generate revenue.
The fixed asset turnover ratio reveals the efficiency of Ecolab in generating sales from its fixed assets, such as property, plant, and equipment, whereas the total asset turnover ratio gives a broader perspective by considering all assets. The fluctuations in these ratios suggest changing levels of asset utilization and operational efficiency for Ecolab Inc. Monitoring these ratios can help assess the company's ability to generate revenue from its assets and identify areas for improvement in operational performance.
See also:
Ecolab Inc Long-term (Investment) Activity Ratios (Quarterly Data)