Ecolab Inc (ECL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.46% | 40.39% | 37.76% | 40.19% | 41.43% |
| Operating profit margin | 17.80% | 13.00% | 5.56% | 7.01% | 6.94% |
| Pretax margin | 16.33% | 11.46% | 9.47% | 11.11% | 9.85% |
| Net profit margin | 13.42% | 8.96% | 7.69% | 8.87% | 8.35% |
Ecolab Inc's profitability ratios over the last five years demonstrate fluctuations in its performance.
- Gross profit margin declined from 41.43% in 2020 to 37.76% in 2022, before recovering to 43.46% in 2024. This indicates a fluctuating ability to generate profits after accounting for the cost of goods sold.
- Operating profit margin was relatively stable, ranging from 5.56% in 2022 to 17.80% in 2024. This suggests varying operational efficiency and cost management strategies.
- Pretax margin showed an increase from 9.85% in 2020 to 16.33% in 2024, with fluctuations in between. This indicates changes in the company's ability to generate profits before taxes relative to its total revenue.
- Net profit margin fluctuated between 7.69% in 2022 and 13.42% in 2024, demonstrating variations in the company's ability to generate profits after all expenses have been deducted.
In conclusion, Ecolab Inc's profitability ratios have shown varying trends over the past five years, indicating changes in the company's ability to generate profits at different stages of its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.52% | 9.12% | 3.67% | 4.21% | 4.52% |
| Return on assets (ROA) | 9.44% | 6.28% | 5.09% | 5.33% | 5.43% |
| Return on total capital | 30.47% | 26.23% | 25.54% | 25.83% | 27.31% |
| Return on equity (ROE) | 24.12% | 17.06% | 15.09% | 15.64% | 15.97% |
Ecolab Inc's profitability ratios show a positive trend over the years analyzed.
1. Operating return on assets (Operating ROA) decreased from 4.52% in 2020 to 3.67% in 2022, but then significantly improved to 12.52% in 2024. This indicates that the company's operating income generated from its assets has become more efficient over time.
2. Return on assets (ROA) remained relatively stable, starting at 5.43% in 2020 and gradually increasing to 9.44% in 2024. This shows that Ecolab has been successful in generating net income relative to its total assets.
3. Return on total capital saw a slight decrease from 27.31% in 2020 to 25.54% in 2022 before rising to 30.47% in 2024. This ratio demonstrates the company's ability to generate returns from all sources of capital invested in the business.
4. Return on equity (ROE) exhibited steady growth, starting at 15.97% in 2020 and climbing to 24.12% in 2024. The increasing ROE reflects Ecolab's efficiency in utilizing shareholder equity to generate profit.
Overall, Ecolab Inc's profitability ratios indicate improving financial performance, with a particularly strong increase in operating return on assets and return on equity over the years. The company appears to be effectively utilizing its assets and capital to drive profitability and create value for its shareholders.