Ecolab Inc (ECL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,004,500 | 2,955,400 | 2,505,300 | 2,351,100 | 2,183,400 | 1,938,900 | 1,842,800 | 1,765,200 | 1,723,400 | 1,818,700 | 1,836,700 | 1,872,300 | 1,867,800 | 1,870,900 | 1,796,900 | 1,614,200 | 1,683,900 | 1,781,300 | 1,916,400 | 2,130,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,757,300 | 8,547,800 | 8,287,400 | 8,205,600 | 8,044,700 | 7,795,800 | 7,556,700 | 7,344,200 | 7,236,100 | 7,062,600 | 7,093,400 | 7,081,600 | 7,224,200 | 6,933,500 | 6,709,100 | 6,292,300 | 6,166,500 | 6,014,700 | 5,855,200 | 8,822,100 |
| Return on total capital | 34.31% | 34.57% | 30.23% | 28.65% | 27.14% | 24.87% | 24.39% | 24.04% | 23.82% | 25.75% | 25.89% | 26.44% | 25.85% | 26.98% | 26.78% | 25.65% | 27.31% | 29.62% | 32.73% | 24.15% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,004,500K ÷ ($—K + $8,757,300K)
= 34.31%
Ecolab Inc's return on total capital has displayed fluctuations over the reporting periods provided. The ratio measures how efficiently the company is generating profits from its total capital employed.
In March 2020, Ecolab's return on total capital was 24.15%, indicating that the company was effectively utilizing its capital to generate returns. The ratio improved to 32.73% by June 2020, reflecting a significant increase in efficiency.
Subsequently, there were fluctuations in the ratio, with figures of 29.62% in September 2020, 27.31% in December 2020, and 25.65% in March 2021. The trend was slightly positive with a rebound to 26.78% in June 2021.
The ratio remained relatively stable around the mid-20% range from September 2021 to March 2023, with figures ranging from 24.87% to 26.44%. In December 2023, there was a notable increase to 27.14%, signaling improved capital efficiency.
From March 2024 onwards, Ecolab's return on total capital showed a significant uptrend, reaching 34.31% by the end of December 2024. This substantial increase indicates that the company efficiently utilized its total capital, potentially achieving higher profitability and value creation for its shareholders.
Overall, Ecolab's return on total capital demonstrates variability over time, with fluctuations reflecting changes in the company's operational efficiency and capital allocation strategies.
Peer comparison
Dec 31, 2024