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 | ||
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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.
Peer comparison
Dec 31, 2023