Ecolab Inc (ECL)

Current 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
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
Current ratio		1.30	1.26	1.22	1.17	1.30	1.35	1.29	1.27	1.32	1.72	1.91	1.81	1.75	1.61	1.60	1.51	1.33	1.24	1.18	1.14

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,644,100K ÷ $4,345,800K
= 1.30

The current ratio of Ecolab, Inc. has shown some fluctuation over the past eight quarters. In Q4 2023, the current ratio was 1.30, which indicates that the company had $1.30 in current assets for every $1 in current liabilities. This ratio has been relatively stable around the 1.30 mark for the last two quarters, suggesting a strong ability to meet short-term obligations.

Although the current ratio decreased slightly in Q3 and Q2 2023 to 1.26 and 1.22, respectively, it remained above 1. This indicates that Ecolab had sufficient current assets to cover its current liabilities during these periods. However, there was a slight downward trend in the ratio during this time frame.

In contrast, in Q1 2023, the current ratio dropped to 1.17, the lowest level in the given period, which may indicate a potential liquidity challenge in meeting short-term obligations. This could be a cause for concern and warrants further investigation into the company's liquidity position and management of current assets and liabilities.

Looking back to Q4 2022, the current ratio was the same as Q4 2023 at 1.30, suggesting that the company's liquidity position had been relatively stable over these two quarters. Overall, while Ecolab has generally maintained a current ratio above 1 in the past eight quarters, the slight fluctuations observed in certain periods highlight the importance of continuous monitoring of liquidity for the company.