Ecolab Inc (ECL)

Total 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
Total assets	US$ in thousands	21,846,600	21,858,100	21,456,200	21,251,500	21,464,300	21,037,000	21,163,600	21,067,200	21,206,400	17,926,200	18,533,700	18,208,100	18,126,000	18,097,100	18,082,400	22,339,600	20,869,100	20,835,600	20,827,600	20,927,600
Total asset turnover		0.71	0.69	0.69	0.69	0.67	0.67	0.65	0.63	0.61	0.70	0.66	0.64	0.68	0.72	0.77	0.67	0.71	0.71	0.71	0.70

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $15,449,600K ÷ $21,846,600K
= 0.71

The total asset turnover of Ecolab, Inc. has been increasing gradually over the past eight quarters, from 0.62 in Q1 2022 to 0.70 in Q4 2023. This indicates that the company is generating more revenue relative to its total assets.

A total asset turnover ratio of less than 1 suggests that Ecolab is able to generate sales revenue with less investment in total assets, which is generally considered favorable. The improvement in the total asset turnover ratio over time implies that the company has become more efficient in utilizing its assets to generate sales.

A higher total asset turnover ratio may signify better operational efficiency and effective management of assets. It shows that Ecolab is making efficient use of its assets to generate revenue, which is crucial for profitability and sustainable growth.

Overall, the increasing trend in Ecolab's total asset turnover ratio indicates improved operational efficiency and a more effective utilization of assets in generating sales revenue.