Ecolab Inc (ECL)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,004,500	2,955,400	2,505,300	2,351,100	2,183,400	1,938,900	1,842,800	1,765,200	1,723,400	1,818,700	1,836,700	1,872,300	1,867,800	1,870,900	1,796,900	1,614,200	1,683,900	1,781,300	1,916,400	2,130,400
Interest expense (ttm)	US$ in thousands	324,300	315,500	319,400	317,000	296,700	299,300	290,100	268,300	247,100	218,700	230,000	219,600	218,300	222,100	280,500	293,600	290,000	287,800	199,100	189,900
Interest coverage		9.26	9.37	7.84	7.42	7.36	6.48	6.35	6.58	6.97	8.32	7.99	8.53	8.56	8.42	6.41	5.50	5.81	6.19	9.63	11.22

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,004,500K ÷ $324,300K
= 9.26

Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expense. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.

For Ecolab Inc, the interest coverage ratio has shown some fluctuations over the reporting periods. As of December 31, 2024, the interest coverage ratio was 9.26, indicating that the company's earnings were 9.26 times larger than its interest expenses. This suggests that Ecolab Inc had a strong ability to cover its interest obligations at that point in time.

Looking at the trend over the past few quarters, there was a noticeable decline in the interest coverage ratio from March 31, 2020, when it was 11.22, to a low of 5.50 on March 31, 2021. However, there has been some improvement since then, with the ratio showing some variability but generally increasing in the more recent quarters.

Overall, while Ecolab Inc experienced some fluctuations in its interest coverage ratio, the ratio has generally been at levels indicating a healthy ability to meet its interest payments. It is important for investors and creditors to monitor this ratio to assess the company's financial health and ability to manage its debt obligations.