Ecolab Inc (ECL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.56 | 2.59 | 2.59 | 2.60 | 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 |
Ecolab Inc has consistently maintained a very healthy solvency position over the reported periods, as indicated by its solvency ratios.
The Debt-to-Assets ratio, Debt-to-Capital ratio, and Debt-to-Equity ratio for Ecolab Inc have remained at 0.00 across all periods up to December 31, 2024. This suggests that Ecolab Inc has not relied on significant levels of debt to finance its operations, and its assets are primarily funded by equity.
The Financial Leverage ratio, which measures the extent to which a company is using debt to finance its assets, has shown a declining trend from 2.53 on March 31, 2020, to 2.56 by December 31, 2024. This indicates that Ecolab Inc has been effectively managing its financial leverage over the years, resulting in a lower reliance on debt financing.
Overall, Ecolab Inc's solvency ratios demonstrate a strong financial position with minimal debt obligations. This suggests a lower risk of financial distress and indicates a conservative approach to capital structure management.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Looking at the historical trend of Ecolab Inc's interest coverage ratio from March 31, 2020, to December 31, 2024, we can see some fluctuations in the company's ability to cover its interest expenses.
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
The interest coverage ratio for Ecolab Inc started at a healthy 11.22 on March 31, 2020, but gradually declined over time. By December 31, 2024, the interest coverage ratio stood at 9.26, which is still considered a reasonably good level.
The ratio fluctuated during the period, reaching its lowest point of 5.50 on March 31, 2021, signaling a temporary decrease in the company's ability to cover its interest obligations. However, it then improved and fluctuated around the 6 to 9 range in the subsequent quarters.
Overall, Ecolab Inc generally maintained a satisfactory level of interest coverage over the analyzed period, although there were some fluctuations. Investors and creditors often closely monitor the interest coverage ratio to assess a company's financial health and its ability to meet its debt obligations.