Ecolab Inc (ECL)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,571,200 | 1,755,500 | 1,343,400 | 1,414,200 | 1,161,400 |
| Revenue | US$ in thousands | 15,741,400 | 15,320,200 | 14,187,800 | 12,733,100 | 11,790,200 |
| Pretax margin | 16.33% | 11.46% | 9.47% | 11.11% | 9.85% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,571,200K ÷ $15,741,400K
= 16.33%
Ecolab Inc's pretax margin, a key profitability ratio, has shown fluctuations over the past five years. In 2020, the pretax margin stood at 9.85%, indicating that for every dollar of revenue generated, the company retained 9.85 cents before taxes. Subsequently, there was an improvement in 2021, with the pretax margin increasing to 11.11%, reflecting enhanced operational efficiency and cost management.
However, in 2022, the pretax margin declined to 9.47%, signifying potential challenges in maintaining profitability levels. The following year, there was a notable recovery as the pretax margin rose to 11.46%, suggesting successful strategies to enhance profitability were implemented.
The most significant increase was observed in 2024, with the pretax margin reaching 16.33%, indicating a substantial improvement in operational performance and cost control measures. Overall, the trend in Ecolab Inc's pretax margin reflects a mix of efficiency gains and challenges faced by the company in recent years.
Peer comparison
Dec 31, 2024