Ecolab Inc (ECL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,668,200 | 2,110,200 | 1,848,000 | 1,866,200 | 1,684,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,757,300 | 8,044,700 | 7,236,100 | 7,224,200 | 6,166,500 |
| Return on total capital | 30.47% | 26.23% | 25.54% | 25.83% | 27.31% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,668,200K ÷ ($—K + $8,757,300K)
= 30.47%
Ecolab Inc's return on total capital has displayed a generally positive trend over the five-year period from December 31, 2020, to December 31, 2024.
Starting at 27.31% in 2020, the return on total capital decreased slightly to 25.83% by the end of 2021. However, the metric remained relatively stable around 25.5% in 2022 and 2023.
The most significant improvement was observed in 2024, with the return on total capital increasing notably to 30.47%. This upturn indicates that Ecolab Inc efficiently utilized its total capital to generate profits in 2024.
Overall, the trend suggests that Ecolab Inc effectively managed its capital resources and improved its profitability over the analyzed period, particularly evidenced by the substantial increase in return on total capital in 2024.
Peer comparison
Dec 31, 2024