Ecolab Inc (ECL)

Total 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
Total assets	US$ in thousands	21,846,600	21,464,300	21,206,400	18,126,000	20,869,100
Total asset turnover		0.71	0.67	0.61	0.65	0.73

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $15,483,100K ÷ $21,846,600K
= 0.71

Ecolab, Inc.'s total asset turnover has shown fluctuations over the past five years. The ratio decreased from 0.71 in 2019 to 0.60 in 2021, indicating that the company generated $0.60 in sales for every $1 of assets in 2021. However, there was a slight improvement in 2022 and 2023, with ratios of 0.66 and 0.70, respectively.

A higher total asset turnover ratio generally indicates that a company is able to efficiently generate sales using its assets. The rise in the ratio from 2021 to 2023 suggests that Ecolab may have improved its asset utilization or sales generation strategies during these years.

It is important to consider the industry norms and specific company circumstances when interpreting total asset turnover ratios, as they can vary significantly across sectors. Analyzing the trend of this ratio alongside other financial metrics can provide a more comprehensive understanding of Ecolab's operational efficiency and asset management practices.