Stock Analysis on Net
Stock Analysis on Net

Ecolab Inc. (NYSE:ECL)

This company has been moved to the archive! The financial data has not been updated since February 25, 2022.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Ecolab Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2021 15.64% = 5.33% × 2.94
Sep 30, 2021 16.29% = 6.30% × 2.59
Jun 30, 2021 15.66% = 5.67% × 2.76
Mar 31, 2021 -20.58% = -7.11% × 2.89
Dec 31, 2020 -19.54% = -6.65% × 2.94
Sep 30, 2020 -17.89% = -5.94% × 3.01
Jun 30, 2020 -14.65% = -4.74% × 3.09
Mar 31, 2020 17.52% = 6.92% × 2.53
Dec 31, 2019 17.95% = 7.47% × 2.40
Sep 30, 2019 17.79% = 7.32% × 2.43
Jun 30, 2019 18.18% = 7.18% × 2.53
Mar 31, 2019 17.98% = 7.06% × 2.55
Dec 31, 2018 17.86% = 7.12% × 2.51
Sep 30, 2018 20.18% = 8.01% × 2.52
Jun 30, 2018 19.83% = 7.80% × 2.54
Mar 31, 2018 19.76% = 7.44% × 2.66
Dec 31, 2017 19.80% = 7.56% × 2.62
Sep 30, 2017 — = — × 2.75
Jun 30, 2017 — = — × 2.82
Mar 31, 2017 — = — × 2.82

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2021 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Ecolab Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 15.64% = 8.87% × 0.60 × 2.94
Sep 30, 2021 16.29% = 9.08% × 0.69 × 2.59
Jun 30, 2021 15.66% = 8.66% × 0.65 × 2.76
Mar 31, 2021 -20.58% = -11.11% × 0.64 × 2.89
Dec 31, 2020 -19.54% = -10.22% × 0.65 × 2.94
Sep 30, 2020 -17.89% = -8.57% × 0.69 × 3.01
Jun 30, 2020 -14.65% = -6.43% × 0.74 × 3.09
Mar 31, 2020 17.52% = 10.72% × 0.65 × 2.53
Dec 31, 2019 17.95% = 10.46% × 0.71 × 2.40
Sep 30, 2019 17.79% = 10.27% × 0.71 × 2.43
Jun 30, 2019 18.18% = 10.12% × 0.71 × 2.53
Mar 31, 2019 17.98% = 10.05% × 0.70 × 2.55
Dec 31, 2018 17.86% = 9.74% × 0.73 × 2.51
Sep 30, 2018 20.18% = 10.99% × 0.73 × 2.52
Jun 30, 2018 19.83% = 10.83% × 0.72 × 2.54
Mar 31, 2018 19.76% = 10.62% × 0.70 × 2.66
Dec 31, 2017 19.80% = 10.90% × 0.69 × 2.62
Sep 30, 2017 — = — × — × 2.75
Jun 30, 2017 — = — × — × 2.82
Mar 31, 2017 — = — × — × 2.82

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2021 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Ecolab Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 5.33% = 8.87% × 0.60
Sep 30, 2021 6.30% = 9.08% × 0.69
Jun 30, 2021 5.67% = 8.66% × 0.65
Mar 31, 2021 -7.11% = -11.11% × 0.64
Dec 31, 2020 -6.65% = -10.22% × 0.65
Sep 30, 2020 -5.94% = -8.57% × 0.69
Jun 30, 2020 -4.74% = -6.43% × 0.74
Mar 31, 2020 6.92% = 10.72% × 0.65
Dec 31, 2019 7.47% = 10.46% × 0.71
Sep 30, 2019 7.32% = 10.27% × 0.71
Jun 30, 2019 7.18% = 10.12% × 0.71
Mar 31, 2019 7.06% = 10.05% × 0.70
Dec 31, 2018 7.12% = 9.74% × 0.73
Sep 30, 2018 8.01% = 10.99% × 0.73
Jun 30, 2018 7.80% = 10.83% × 0.72
Mar 31, 2018 7.44% = 10.62% × 0.70
Dec 31, 2017 7.56% = 10.90% × 0.69
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2021 is the decrease in asset turnover ratio.