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.
Peer comparison
Dec 31, 2023