Ecolab Inc (ECL)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,083,700 | 1,856,200 | 1,738,100 | 1,681,300 | 1,588,000 | 1,576,500 | 1,579,100 | 1,585,500 | 1,626,400 | 1,654,800 | 1,589,600 | 1,333,000 | 1,395,700 | 1,497,800 | 1,635,400 | 1,907,800 | 1,845,200 | 1,908,900 | 1,876,100 | 1,906,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 6,671,200 | — | — | — | 6,274,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 8,685,300 | 8,567,700 | 8,225,400 | 8,220,700 |
| Return on total capital | 25.90% | 23.81% | 23.00% | 22.89% | 21.95% | 22.32% | 22.26% | 22.39% | 22.51% | 23.87% | 23.69% | 21.18% | 10.87% | 24.90% | 27.93% | 21.63% | 12.33% | 22.28% | 22.81% | 23.19% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,083,700K ÷ ($—K + $8,044,700K)
= 25.90%
Ecolab, Inc.'s return on total capital has shown a consistent positive trend over the past eight quarters, reflecting the company's ability to generate returns from its invested capital. The return on total capital increased from 10.54% in Q1 2022 to 12.96% in Q4 2023, indicating an improvement in the company's efficiency in utilizing its total capital to generate profits.
The steady increase in the return on total capital signifies that Ecolab is effectively deploying its capital resources to generate profits for its shareholders. This trend suggests that the company is efficiently managing its assets and liabilities to maximize returns, which is a positive sign for investors.
Overall, the progressive improvement in Ecolab's return on total capital over the past eight quarters highlights the company's financial strength and effective capital allocation strategies. It indicates that Ecolab is utilizing its invested capital efficiently to generate returns, which bodes well for its financial performance and shareholder value in the long run.
Peer comparison
Dec 31, 2023