Ecolab Inc (ECL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.26 | 1.30 | 1.50 | 1.41 | 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 |
| Quick ratio | 0.26 | 0.27 | 0.10 | 0.13 | 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 |
| Cash ratio | 0.26 | 0.27 | 0.10 | 0.13 | 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 |
The current ratio of Ecolab Inc has shown fluctuations over the analyzed periods, with the ratio ranging from 1.27 to 1.91. The current ratio indicates the company's ability to pay its short-term obligations with its current assets, and a ratio above 1 signifies that Ecolab Inc has more current assets than current liabilities, which is generally considered healthy.
The quick ratio, also known as the acid-test ratio, has varied from 0.03 to 0.49 during the period under review. This ratio provides a more stringent measure of liquidity as it excludes inventory from current assets. A quick ratio above 1 is typically preferred, indicating that the company can meet its short-term obligations without relying on selling inventory.
The cash ratio of Ecolab Inc has fluctuated between 0.03 and 0.49 across the analyzed periods. This ratio assesses the company's ability to cover its short-term liabilities with its cash and cash equivalents alone. A higher cash ratio indicates a stronger ability to cover short-term obligations without relying on other current assets.
Overall, Ecolab Inc's liquidity ratios suggest that the company generally maintains a reasonable ability to meet its short-term financial obligations, although there have been fluctuations that may warrant further investigation into the company's liquidity management.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 60.11 | 64.43 | 61.22 | 63.01 | 59.73 | 61.44 | 66.13 | 70.34 | 74.10 | 76.34 | 75.27 | 72.75 | 71.50 | 68.41 | 72.86 | 71.28 | 64.24 | 60.73 | 54.84 | 63.81 |
The cash conversion cycle of Ecolab Inc has shown fluctuations over the past few years. It started at 63.81 days on March 31, 2020, decreased to 54.84 days on June 30, 2020, and then increased to 72.86 days on June 30, 2021. The cycle has ranged between approximately 54 to 76 days since 2020, indicating that the company takes an average of 54 to 76 days to convert its investments in inventory and other resources back into cash through sales.
On a trend analysis, the cycle has shown some volatility but seems to have improved slightly from the higher levels in the latter half of 2021. An increasing cash conversion cycle usually signifies inefficiencies in managing working capital, potentially leading to higher carrying costs. However, a decreasing cycle demonstrates that the company is more efficiently managing its inventory, accounts receivable, and accounts payable.
It is important for Ecolab Inc to closely monitor its cash conversion cycle to ensure effective management of its working capital and optimize cash flows. Overall, fluctuations in the cash conversion cycle should be analyzed alongside other financial metrics to gain a holistic view of the company's financial health and operational efficiency.