Ecolab Inc (ECL)

Financial leverage ratio

		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
Total assets	US$ in thousands	21,846,600	21,858,100	21,456,200	21,251,500	21,464,300	21,037,000	21,163,600	21,067,200	21,206,400	17,926,200	18,533,700	18,208,100	18,126,000	18,097,100	18,082,400	22,339,600	20,869,100	20,835,600	20,827,600	20,927,600
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
Financial leverage ratio		2.72	2.80	2.84	2.89	2.97	2.98	2.98	2.97	2.94	2.59	2.76	2.89	2.94	3.01	3.09	2.53	2.40	2.43	2.53	2.55

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,846,600K ÷ $8,044,700K
= 2.72

The financial leverage ratio of Ecolab, Inc. has been relatively stable over the past eight quarters, ranging between 2.72 and 2.98. This ratio indicates that, on average, the company has approximately $2.72 to $2.98 in debt for every $1 of equity.

A decreasing trend in the financial leverage ratio over time may signify a reduction in the company's reliance on debt financing, which could be viewed positively as it indicates a lower risk of financial distress. Conversely, an increasing trend in the ratio could suggest higher financial risk due to a greater proportion of debt in the company's capital structure.

In the case of Ecolab, Inc., the slight fluctuations in the financial leverage ratio indicate that the company has maintained a relatively consistent level of leverage over the past two years. This could imply that Ecolab has been managing its debt levels effectively and maintaining a stable capital structure throughout the observed period. Further analysis and comparison with industry benchmarks would provide additional insights into the company's leverage position.