Ecolab Inc (ECL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.66% | 11.38% | 12.78% | 10.96% | 13.19% |
| Operating profit margin | 12.87% | 10.85% | 12.41% | 11.86% | 12.19% |
| Pretax margin | 11.20% | 9.33% | 10.98% | -8.58% | 12.21% |
| Net profit margin | 8.86% | 7.58% | 8.88% | -10.08% | 10.30% |
Ecolab, Inc.'s profitability ratios reflect its ability to generate profits relative to its revenue and expenses over the past five years.
1. Gross Profit Margin:
- Ecolab's gross profit margin has been relatively stable, ranging from 37.76% to 41.48% over the period. In 2023, it increased to 40.24%, indicating the company effectively managed its cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin improved to 13.73% in 2023 from 12.00% in 2022. This suggests that Ecolab was more efficient in managing its operating expenses and generating operating income.
3. Pretax Margin:
- The pretax margin also showed improvement in 2023, reaching 11.46%. This indicates that Ecolab was able to control its non-operating expenses and generate higher profits before taxes.
4. Net Profit Margin:
- Ecolab's net profit margin rebounded to 8.96% in 2023 from a negative margin of -10.22% in 2020. While there was volatility, the company managed to achieve a positive net profit margin, reflecting its ability to control costs and improve profitability.
Overall, Ecolab, Inc. demonstrated an improving trend in its profitability ratios, with better control of costs and more efficient management of its operations leading to higher profitability margins.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.12% | 7.28% | 7.54% | 7.70% | 8.84% |
| Return on assets (ROA) | 6.28% | 5.09% | 5.39% | -6.54% | 7.47% |
| Return on total capital | 25.90% | 21.59% | 22.13% | 10.87% | 12.33% |
| Return on equity (ROE) | 17.06% | 15.09% | 15.84% | -19.22% | 17.95% |
Ecolab, Inc.'s profitability ratios demonstrate fluctuating performance over the past five years. The Operating return on assets (Operating ROA) has shown a general positive trend, increasing from 7.93% in 2019 to 9.63% in 2023, indicating improving operational efficiency in generating profits from its assets.
Return on assets (ROA) has also improved from negative -6.65% in 2020 to 6.28% in 2023, signifying the company's ability to generate earnings relative to its total assets, with a positive trend over the years.
Return on total capital has shown variability, with a peak of 14.80% in 2019 and a recent decrease to 12.96% in 2023, suggesting a fluctuating efficiency in generating returns from both equity and debt capital investments.
Return on equity (ROE) has shown similar fluctuations, with a notable negative figure of -19.54% in 2020. However, there has been a recovery, reaching 17.06% in 2023, indicating the company's ability to generate profits from shareholders' equity.
Overall, while Ecolab's profitability ratios have exhibited mixed results, the recent improvements in Operating ROA, ROA, and ROE suggest enhanced operational efficiency and better utilization of assets to generate returns for the company and its shareholders. Further monitoring and analysis will be necessary to assess the sustainability of these trends in the future.