Ecolab Inc (ECL)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,372,300	1,091,700	1,144,000	-1,185,500	1,558,900
Total assets	US$ in thousands	21,846,600	21,464,300	21,206,400	18,126,000	20,869,100
ROA		6.28%	5.09%	5.39%	-6.54%	7.47%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,372,300K ÷ $21,846,600K
= 6.28%

The return on assets (ROA) for Ecolab, Inc. has displayed variability over the past five years. In 2023, the ROA stood at 6.28%, showing an improvement from the previous year's 5.09%. This indicates that the company generated 6.28 cents of profit for every dollar of assets in 2023.

Looking back further, in 2021, the ROA was 5.33%, slightly surpassing the current year's ratio. However, in 2020, there was a significant decline in ROA to -6.65%, suggesting that the company incurred a loss relative to its assets during that year. Ecolab, Inc. then rebounded strongly in 2019, posting an ROA of 7.47%.

The fluctuation in ROA suggests changes in the efficiency and effectiveness of Ecolab's asset utilization and management over the years. Investors and stakeholders may want to further investigate the reasons behind the varying ROA figures to assess the company's operational performance and future prospects.