Ecolab Inc (ECL)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	8,044,700	7,236,100	7,224,200	6,166,500	8,685,300
ROE		17.06%	15.09%	15.84%	-19.22%	17.95%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,372,300K ÷ $8,044,700K
= 17.06%

Ecolab, Inc.'s return on equity (ROE) has shown fluctuations over the past five years. The ROE for the most recent year, December 31, 2023, stood at 17.06%, indicating that for every dollar of shareholders' equity, the company generated a return of 17.06 cents in net income. This represents an improvement from the previous year, where the ROE was 15.09%.

In the years prior to 2023, Ecolab's ROE exhibited mixed performance. In 2022, the ROE was 15.09%, slightly lower than the 15.64% recorded in 2021. However, the most notable trend was the significant decrease in ROE in 2020, where it plummeted to -19.54%. This negative ROE implies that the company incurred a net loss for the period, resulting in a negative return on equity for shareholders.

On a more positive note, the ROE rebounded strongly in 2019 to 17.95%, showcasing the company's ability to generate healthy returns on equity in a profitable year.

Overall, Ecolab's ROE has experienced variability in recent years, with both positive and negative fluctuations. Investors and stakeholders may want to further investigate the factors driving these fluctuations to gain a deeper understanding of the company's financial performance and its ability to generate returns for shareholders.