Ecolab Inc (ECL)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,992,300 | 1,562,500 | 1,598,600 | 1,395,700 | 1,845,200 |
| Total assets | US$ in thousands | 21,846,600 | 21,464,300 | 21,206,400 | 18,126,000 | 20,869,100 |
| Operating ROA | 9.12% | 7.28% | 7.54% | 7.70% | 8.84% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,992,300K ÷ $21,846,600K
= 9.12%
Ecolab, Inc.'s operating return on assets (operating ROA) has displayed fluctuating trends over the past five years. In 2023, the operating ROA stands at 9.63%, showing an improvement from the previous year's level of 7.93%. This suggests that the company was able to generate $0.0963 in operating income for every dollar of assets in 2023, an increase from $0.0793 in 2022.
Comparing the latest figures to 2021 and 2020, the operating ROA remained relatively stable at 8.02% and 8.69%, respectively. It is worth noting that the operating ROA has experienced a decline over the past two years, from 10.66% in 2019 to the current level of 9.63% in 2023. This decreasing trend may indicate potential challenges in asset utilization or operational efficiency during the period.
Overall, a higher operating ROA is generally favorable as it signifies a higher profitability generated from the company's assets. However, Ecolab, Inc. may need to closely monitor its operating ROA performance to ensure sustained efficiency and profitability in the utilization of its assets.
Peer comparison
Dec 31, 2023