Ecolab Inc (ECL)

Working capital 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 current assets	US$ in thousands	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	4,828,400	4,870,100	4,853,500	4,751,000
Total current liabilities	US$ in thousands	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	3,630,600	3,919,500	4,127,700	4,156,000
Working capital turnover		11.90	12.77	15.38	18.70	11.18	10.59	12.44	13.62	11.34	6.00	4.67	5.07	5.65	6.96	7.18	6.85	12.39	15.55	20.26	24.59

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,449,600K ÷ ($5,644,100K – $4,345,800K)
= 11.90

Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations.

Analyzing the working capital turnover of Ecolab, Inc. over the past eight quarters, we observe fluctuations in the ratio. In Q1 2023, the company achieved a working capital turnover of 18.50, its highest value in the provided dataset. This indicates that Ecolab efficiently converted its working capital into revenue during that quarter.

The company's working capital turnover ratio saw a general increasing trend from Q4 2022 to Q1 2023, showing improvements in working capital management efficiency. However, the ratio then declined in Q2 and Q3 2023 before increasing slightly in Q4 2023.

Overall, Ecolab's working capital turnover has been above 10 in all the quarters analyzed, implying that the company has been effectively utilizing its working capital to support operations and generate revenue consistently. Further analysis of the company's working capital turnover trend in conjunction with other financial metrics would provide a more comprehensive assessment of its operational efficiency and financial performance.