Ecolab Inc (ECL)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	2,112,400	2,044,700	1,712,200	1,551,000	1,372,300	1,231,500	1,174,600	1,153,200	1,091,700	1,128,300	1,105,700	1,108,200	1,129,900	1,129,200	1,050,900	-1,294,900	-1,205,100	-1,075,800	-857,800	1,545,800
Total assets	US$ in thousands	22,387,800	22,101,600	21,461,800	21,298,500	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
ROA		9.44%	9.25%	7.98%	7.28%	6.28%	5.63%	5.47%	5.43%	5.09%	5.36%	5.22%	5.26%	5.33%	6.30%	5.67%	-7.11%	-6.65%	-5.94%	-4.74%	6.92%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,112,400K ÷ $22,387,800K
= 9.44%

The Return on Assets (ROA) metric for Ecolab Inc fluctuated significantly over the period from March 31, 2020, to December 31, 2024. Starting at 6.92% in March 2020, the ROA turned negative in the following quarters, reaching a low of -7.11% in March 2021. This negative trend continued until reaching a positive ROA of 5.67% in June 2021.

Ecolab Inc managed to sustain positive ROA figures from June 2021 onwards, with gradual improvements over time. The ROA saw an uptrend, crossing the 9% mark by the end of December 2024, indicating an improvement in the company's efficiency in generating profits relative to its total assets.

The steady increase in ROA over the latter half of the period suggests that Ecolab Inc has been successful in utilizing its assets more effectively to generate earnings, reflecting positively on its operational performance and potentially signaling improved overall financial health.