Ecolab Inc (ECL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,802,400 | 1,992,300 | 788,800 | 892,000 | 818,500 |
| Total assets | US$ in thousands | 22,387,800 | 21,846,600 | 21,464,300 | 21,206,400 | 18,126,000 |
| Operating ROA | 12.52% | 9.12% | 3.67% | 4.21% | 4.52% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,802,400K ÷ $22,387,800K
= 12.52%
Ecolab Inc's operating return on assets (ROA) provides insights into the efficiency of the company in generating profits from its operational assets. The trend analysis of Ecolab's operating ROA from December 31, 2020, to December 31, 2024, shows fluctuations in performance.
As of December 31, 2020, Ecolab had an operating ROA of 4.52%, indicating that the company generated $4.52 in operating income for every $100 of assets it utilized. The operating ROA decreased slightly to 4.21% by the end of 2021, suggesting a slight decline in profitability relative to the previous year.
In December 31, 2022, Ecolab's operating ROA declined further to 3.67%, reflecting potential challenges in efficiently utilizing its assets to generate profits. However, the trend changed significantly in December 31, 2023, as the operating ROA surged to 9.12%, signaling a notable improvement in operational efficiency and profitability.
By December 31, 2024, Ecolab's operating ROA experienced a substantial increase to 12.52%, indicating a significant enhancement in the company's ability to generate operating income from its assets. This remarkable improvement in operating ROA suggests that Ecolab made strategic decisions or operational changes that positively impacted its profitability and asset utilization.
Overall, the fluctuating trend in Ecolab's operating ROA highlights the company's ability to adapt to changing market conditions and optimize its asset utilization to enhance profitability. Investors and stakeholders may view the increasing operating ROA as a positive indication of Ecolab's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024