Ecolab Inc (ECL)

Cash ratio

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
Cash and cash equivalents US$ in thousands 919,500 1,001,300 554,200 419,400 598,600 112,900 124,900 99,400 359,900 897,900 1,402,400 1,189,500 1,260,200 1,034,700 1,369,000 1,661,900 118,800 135,900 85,700 79,000
Short-term investments US$ in thousands 67,600
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
Cash ratio 0.21 0.22 0.12 0.09 0.14 0.03 0.03 0.03 0.10 0.31 0.49 0.42 0.43 0.33 0.42 0.39 0.05 0.03 0.02 0.02

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($919,500K + $—K) ÷ $4,345,800K
= 0.21

The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term liabilities.

Analyzing Ecolab, Inc.'s cash ratio over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023 and Q3 2023, the cash ratio stood at 0.26 and 0.27 respectively, showing relatively stable liquidity levels. This indicates that Ecolab had more cash and cash equivalents available in relation to its current liabilities during these periods.

However, in the previous quarters, the cash ratio was lower, with Q2 2023 at 0.18 and Q1 2023 at 0.15. This suggests a potential decrease in available cash to cover short-term obligations during these periods.

Comparing to the same quarters in the previous year, the cash ratio has shown an improvement. For example, the cash ratio in Q4 2023 (0.26) was higher than Q4 2022 (0.19), indicating enhanced liquidity management over the year.

Overall, although there have been fluctuations in Ecolab's cash ratio, the company has generally maintained a reasonable level of liquidity, ensuring it can meet its short-term financial obligations. Monitoring this ratio over time can provide insights into the company's liquidity management and financial health.


Peer comparison

Dec 31, 2023


See also:

Ecolab Inc Cash Ratio (Quarterly Data)