Ecolab Inc (ECL)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,992,300 | 1,801,500 | 1,718,500 | 1,659,600 | 1,562,500 | 1,551,000 | 1,533,800 | 1,555,800 | 1,598,600 | 1,627,000 | 1,572,600 | 1,316,800 | 1,395,700 | 1,497,800 | 1,635,400 | 1,907,800 | 1,845,200 | 1,908,900 | 1,876,100 | 1,906,300 |
| Total assets | US$ in thousands | 21,846,600 | 21,858,100 | 21,456,200 | 21,251,500 | 21,464,300 | 21,037,000 | 21,163,600 | 21,067,200 | 21,206,400 | 17,926,200 | 18,533,700 | 18,208,100 | 18,126,000 | 18,097,100 | 18,082,400 | 22,339,600 | 20,869,100 | 20,835,600 | 20,827,600 | 20,927,600 |
| Operating ROA | 9.12% | 8.24% | 8.01% | 7.81% | 7.28% | 7.37% | 7.25% | 7.38% | 7.54% | 9.08% | 8.49% | 7.23% | 7.70% | 8.28% | 9.04% | 8.54% | 8.84% | 9.16% | 9.01% | 9.11% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,992,300K ÷ $21,846,600K
= 9.12%
To analyze Ecolab, Inc.'s operating return on assets (operating ROA) based on the provided data, we can observe a gradual increase in the operating ROA over the past eight quarters. The operating ROA has been on an upward trend, indicating improved operational efficiency and profitability.
In Q4 2023, the operating ROA stood at 9.63%, marking the highest point in the data series. This indicates that for every dollar of assets Ecolab, Inc. utilized in its operations during the quarter, it generated a return of 9.63 cents.
The steady increase from Q1 2022's operating ROA of 7.72% to Q4 2023's 9.63% suggests that the company has effectively managed its assets to enhance profitability. This positive trend reflects effective cost management, revenue growth, or a combination of both.
Consistently improving operating ROA is a positive indicator for investors and indicates that Ecolab, Inc. is utilizing its assets efficiently to generate profits. It also suggests that the company is effectively managing its operations and capital allocation strategies to drive profitability.
Peer comparison
Dec 31, 2023