Ecolab Inc (ECL)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,668,200 | 2,110,200 | 1,848,000 | 1,866,200 | 1,684,100 |
| Interest expense | US$ in thousands | 282,500 | 348,900 | 243,600 | 218,300 | 290,200 |
| Interest coverage | 9.44 | 6.05 | 7.59 | 8.55 | 5.80 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,668,200K ÷ $282,500K
= 9.44
The interest coverage ratio of Ecolab Inc, a measure of its ability to cover interest expenses with operating profits, has shown a positive trend over the past five years. In December 2020, the interest coverage ratio stood at 5.80, indicating that the company generated operating profits 5.80 times greater than its interest expenses.
Subsequently, the interest coverage ratio improved consistently, reaching 8.55 in December 2021, 7.59 in December 2022, 6.05 in December 2023, and finally peaking at 9.44 in December 2024. This signifies that Ecolab Inc has been able to significantly increase its operating profits relative to its interest expenses, reflecting a strengthening financial position and enhanced ability to meet debt obligations through operational earnings.
Peer comparison
Dec 31, 2024