Ecolab Inc (ECL)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	15,741,400	15,674,600	15,634,200	15,500,500	15,320,200	15,053,000	14,764,200	14,492,700	14,187,800	13,881,200	13,532,700	13,114,800	12,733,100	12,433,800	12,131,600	11,654,600	12,351,000	13,109,300	13,908,600	14,982,300
Total current assets	US$ in thousands	6,025,700	6,118,300	5,752,300	5,211,700	5,644,100	5,789,400	5,436,500	5,272,800	5,494,200	5,099,300	4,905,000	4,604,500	4,687,100	4,986,800	5,487,400	5,150,000	5,117,400	4,992,000	5,166,200	6,437,100
Total current liabilities	US$ in thousands	4,792,800	4,709,100	3,847,600	3,701,100	4,345,800	4,600,500	4,467,500	4,489,600	4,210,400	3,772,300	3,806,000	3,631,300	3,553,200	2,894,500	2,880,300	2,852,200	2,932,200	3,106,400	3,227,700	4,257,400
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,741,400K ÷ ($6,025,700K – $4,792,800K)
= 12.77

The working capital turnover ratio for Ecolab Inc has experienced fluctuations over the reporting periods. From March 31, 2020, to June 30, 2022, the ratio showed a declining trend, indicating a decrease in the efficiency of the company's working capital management. However, starting from September 30, 2022, the ratio began to increase significantly, suggesting an improvement in the utilization of working capital.

The ratio peaked at 18.50 on March 31, 2023, indicating that Ecolab was able to generate $18.50 in revenue for every $1 of working capital invested. This reflects a strong efficiency in utilizing its working capital to generate sales.

However, the ratio started to decrease again in the subsequent periods, reaching its lowest point at 8.21 on June 30, 2024, before slightly rebounding to 12.77 by December 31, 2024. This downward trend suggests a potential inefficiency in managing working capital during those periods.

Overall, Ecolab Inc should continue to monitor its working capital turnover ratio closely to ensure efficient management of its working capital resources and strive for consistency in generating revenue relative to its working capital investment.