Ecolab Inc (ECL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.56 | 2.72 | 2.97 | 2.94 | 2.94 |
Based on the provided data for Ecolab Inc, the solvency ratios are as follows:
1. Debt-to-assets ratio: The debt-to-assets ratio measures the proportion of a company's assets that are financed by debt. Ecolab Inc has maintained a consistent debt-to-assets ratio of 0.00 from 2020 to 2024. This indicates that the company has not relied on debt to finance its assets during this period.
2. Debt-to-capital ratio: The debt-to-capital ratio evaluates the percentage of a company's capital that comes from debt. Ecolab Inc has consistently reported a debt-to-capital ratio of 0.00 from 2020 to 2024. This suggests that the company has not heavily leveraged debt to fund its operations or investments.
3. Debt-to-equity ratio: The debt-to-equity ratio compares a company's total debt to its total equity, representing the shareholders' stake in the company. Ecolab Inc has maintained a debt-to-equity ratio of 0.00 from 2020 to 2024. This implies that the company has not heavily relied on debt to finance its operations relative to its equity position.
4. Financial leverage ratio: The financial leverage ratio, also known as the equity multiplier, measures the extent to which a company utilizes debt in relation to its equity. Ecolab Inc's financial leverage ratio has decreased from 2.94 in 2020 to 2.56 in 2024. This indicates that the company has been reducing its reliance on debt over the years and potentially improving its financial stability.
Overall, the solvency ratios for Ecolab Inc reflect a conservative approach to debt management, with minimal reliance on debt financing and a decreasing trend in financial leverage ratio, suggesting a healthy financial position and stability over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.44 | 6.05 | 7.59 | 8.55 | 5.80 |
Based on the data provided, Ecolab Inc's interest coverage ratio has shown improvement over the years. In December 31, 2020, the interest coverage ratio was 5.80, indicating that the company generated 5.80 times the earnings before interest and taxes (EBIT) to cover its interest expenses.
By December 31, 2024, the interest coverage ratio increased to 9.44, demonstrating a more robust ability to meet its interest obligations. This upward trend suggests that Ecolab Inc's earnings are sufficient to comfortably cover its interest expenses, implying a lower risk of default on its debt obligations.
Overall, the consistent improvement in the interest coverage ratio reflects Ecolab Inc's strong financial position and efficient management of its debt obligations. It indicates a healthy financial performance and a reduced financial risk for the company.