Ecolab Inc (ECL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,025,700 | 5,644,100 | 5,494,200 | 4,687,100 | 5,117,400 |
| Total current liabilities | US$ in thousands | 4,792,800 | 4,345,800 | 4,210,400 | 3,553,200 | 2,932,200 |
| Current ratio | 1.26 | 1.30 | 1.30 | 1.32 | 1.75 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,025,700K ÷ $4,792,800K
= 1.26
The current ratio of Ecolab Inc has shown a downward trend over the past five years. As of December 31, 2020, the company had a current ratio of 1.75, indicating that it had $1.75 in current assets for every $1 of current liabilities. However, by December 31, 2024, the current ratio had declined to 1.26.
A current ratio above 1 generally suggests that a company is able to meet its short-term financial obligations. While Ecolab Inc's current ratio has decreased over the years, it still remains above 1, albeit showing some weakening liquidity position.
It is important to note that a declining current ratio may indicate potential difficulties in meeting short-term liabilities with current assets. Ecolab Inc may need to monitor its liquidity position closely and assess its working capital management to ensure it remains able to cover its short-term obligations.
Peer comparison
Dec 31, 2024