Ecolab Inc (ECL)

Receivables 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
Receivables	US$ in thousands	3,021,100	2,882,200	2,629,700	2,442,400	2,930,200
Receivables turnover		5.12	5.00	4.90	4.82	5.16

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $15,483,100K ÷ $3,021,100K
= 5.12

Ecolab, Inc.'s receivables turnover ratio has shown a fluctuating trend over the past five years. The ratio increased from 4.83 in 2020 to 5.07 in 2023. This indicates that, on average, the company collected its accounts receivables more frequently in 2023 compared to previous years. A higher receivables turnover ratio suggests that Ecolab is efficiently managing its accounts receivables and collecting payments from customers in a timely manner.

However, the slight decrease in 2022, followed by gradual increases in 2023, may indicate some variability in the company's collection efficiency during these years. Overall, Ecolab's ability to turn its accounts receivables into cash appears to be satisfactory, as evidenced by consistently positive turnover ratios well above 1.0.

It is important to note that receivables turnover should also be considered in conjunction with other financial metrics and industry benchmarks for a more comprehensive evaluation of Ecolab's overall financial performance and liquidity management.