Stock Analysis on Net

Ecolab Inc. (NYSE:ECL)

$22.49

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

Analysis of Solvency Ratios

Microsoft Excel

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Solvency Ratios (Summary)

Ecolab Inc., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity
Debt to equity (including operating lease liability)
Debt to capital
Debt to capital (including operating lease liability)
Debt to assets
Debt to assets (including operating lease liability)
Financial leverage
Coverage Ratios
Interest coverage
Fixed charge coverage

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


The financial data over the five-year period reveals several notable trends in leverage and coverage ratios.

Debt to Equity Ratios
Both the debt to equity and the debt to equity including operating lease liability ratios show a general decline from 2017 through 2019, reaching their lowest points at 0.73 and 0.8, respectively, in 2019. Subsequently, there is a marked increase in 2020 and 2021, with the ratios rising to 1.08 and 1.15 in 2020, and further to 1.21 and 1.27 in 2021. This indicates a shift toward higher reliance on debt financing relative to shareholders' equity in the latter years.
Debt to Capital Ratios
The debt to capital ratio, both excluding and including operating lease liability, follows a similar pattern to the debt to equity ratios. There is a decrease from 0.49 in 2017 to 0.42 (0.44 including leases) in 2019, followed by an increase to 0.52 (0.54) in 2020 and 0.55 (0.56) in 2021, indicating a growing proportion of debt in the overall capital structure during the last two years.
Debt to Assets Ratios
The debt to assets ratio and its variant including operating lease liabilities decline from 0.37 (0.37) in 2017 to 0.30 (0.33) in 2019. After this, the ratio increases in 2020 to 0.37 (0.39) and further to 0.41 (0.43) in 2021, implying increased leverage relative to total assets during the recent period.
Financial Leverage
The financial leverage ratio decreases steadily from 2.62 in 2017 to 2.4 in 2019. A significant increase to 2.94 occurs in 2020, where it remains steady through 2021. This suggests a higher total asset base financed by equity, reflecting increased overall leverage in the most recent years.
Interest Coverage Ratio
The interest coverage ratio shows improvement from 7.43 in 2017 to a peak of 9.82 in 2019, indicating enhanced ability to meet interest obligations. However, this sharply declines to 4.81 in 2020 before improving to 7.13 in 2021, pointing to a period of reduced earnings relative to interest expenses in 2020, with signs of recovery thereafter.
Fixed Charge Coverage Ratio
Similar to interest coverage, the fixed charge coverage ratio rises from 4.44 in 2017 to 5.37 in 2019, then falls significantly to 3.38 in 2020. It recovers to 4.45 in 2021 but remains below the 2019 peak, indicating some constraint in covering fixed financial obligations during 2020 and partial recovery in the following year.

Overall, the data suggests that the company reduced its leverage position until 2019, improving coverage ratios simultaneously. From 2020 onward, leverage increased significantly across all metrics, coinciding with reductions in interest and fixed charge coverage ratios, signaling heightened financial risk during this period with partial recovery evident in 2021.


Debt Ratios


Coverage Ratios


Debt to Equity

Ecolab Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Short-term debt
Long-term debt, excluding current maturities
Total debt
 
Total Ecolab shareholders’ equity
Solvency Ratio
Debt to equity1
Benchmarks
Debt to Equity, Competitors2
Linde plc
Sherwin-Williams Co.
Debt to Equity, Sector
Chemicals
Debt to Equity, Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity = Total debt ÷ Total Ecolab shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total Debt
The total debt exhibited a fluctuating pattern over the observed period. Initially, a decline was noted from 7,322,700 thousand USD at the end of 2017 to 6,354,100 thousand USD by the end of 2019. However, this was followed by an increase in 2020 and a more significant rise in 2021, culminating at 8,758,200 thousand USD.
Total Shareholders’ Equity
The shareholders’ equity demonstrated variability throughout the years. After an upward trend from 7,618,500 thousand USD in 2017 to 8,685,300 thousand USD in 2019, there was a substantial decrease in 2020 to 6,166,500 thousand USD. A partial recovery occurred in 2021, with equity increasing to 7,224,200 thousand USD, though it did not return to earlier peak levels.
Debt to Equity Ratio
The debt to equity ratio reflected a decreasing trend from 0.96 in 2017 to a low of 0.73 in 2019, indicating improved leverage and possibly stronger equity relative to debt. This trend reversed in 2020, with the ratio rising sharply to 1.08 and further increasing to 1.21 in 2021, signifying higher leverage and an increased proportion of debt compared to equity during the last two years.
Overall Analysis
Over the five-year span, the company’s financial leverage underwent notable changes. Initially, debt levels and the debt-to-equity ratio decreased, suggesting a strengthening equity position relative to debt. However, in 2020, there was a marked shift, with equity declining significantly while debt increased, resulting in heightened leverage ratios through 2021. This indicates a more aggressive funding approach with debt, coupled with diminished equity, potentially reflecting strategic borrowing or financial pressures during this period.

Debt to Equity (including Operating Lease Liability)

Ecolab Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Short-term debt
Long-term debt, excluding current maturities
Total debt
Current operating lease liabilities
Noncurrent operating lease liabilities
Total debt (including operating lease liability)
 
Total Ecolab shareholders’ equity
Solvency Ratio
Debt to equity (including operating lease liability)1
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Linde plc
Sherwin-Williams Co.
Debt to Equity (including Operating Lease Liability), Sector
Chemicals
Debt to Equity (including Operating Lease Liability), Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Ecolab shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total Debt (including operating lease liability)
The total debt exhibited a general decline from 7,322,700 thousand US dollars in 2017 to 6,932,500 thousand in 2019. However, this trend reversed from 2020 onwards, with debt increasing to 7,112,700 thousand and further rising significantly to 9,155,900 thousand by the end of 2021. This indicates a notable increase in leverage during the latter years of the period analyzed.
Total Shareholders’ Equity
Shareholders' equity experienced growth from 7,618,500 thousand US dollars in 2017 to a peak of 8,685,300 thousand in 2019. Following this peak, there was a substantial decrease to 6,166,500 thousand in 2020, with a modest recovery to 7,224,200 thousand in 2021. This suggests an erosion of equity value amid possibly adverse conditions during 2020, with partial recuperation occurring the following year.
Debt to Equity Ratio (including operating lease liability)
The debt-to-equity ratio decreased steadily from 0.96 in 2017 to a low of 0.8 in 2019, reflecting a strengthening equity base relative to debt. This trend was reversed in 2020 and 2021, with the ratio rising sharply to 1.15 and then to 1.27, respectively. Such an increase denotes a higher reliance on debt financing relative to equity, indicating increased financial leverage and associated risk.

Debt to Capital

Ecolab Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Short-term debt
Long-term debt, excluding current maturities
Total debt
Total Ecolab shareholders’ equity
Total capital
Solvency Ratio
Debt to capital1
Benchmarks
Debt to Capital, Competitors2
Linde plc
Sherwin-Williams Co.
Debt to Capital, Sector
Chemicals
Debt to Capital, Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =

2 Click competitor name to see calculations.


Total debt
The total debt experienced a decrease from 7,322,700 thousand US dollars in 2017 to 6,354,100 thousand US dollars in 2019, indicating a reduction in financial obligations during this period. However, it subsequently increased to 6,686,600 thousand in 2020 and then significantly rose to 8,758,200 thousand in 2021, suggesting a shift towards higher leverage or increased borrowing in the later years.
Total capital
Total capital remained relatively stable from 2017 through 2019, fluctuating around 15 billion US dollars. A notable decline occurred in 2020, dropping to 12,853,100 thousand US dollars, which may reflect changes in equity or reductions in other capital components. By 2021, total capital rebounded to 15,982,400 thousand dollars, exceeding previous levels, indicating capital growth or infusion.
Debt to capital ratio
The debt to capital ratio exhibited a downward trend from 0.49 in 2017 to 0.42 in 2019, reflective of a reduction in leverage relative to the capital base. This trend reversed in 2020, with the ratio increasing sharply to 0.52 and further to 0.55 in 2021, highlighting an increase in debt proportion relative to total capital. The overall pattern suggests a cycle of deleveraging followed by more aggressive borrowing or capital structure adjustment over the five-year period.

Debt to Capital (including Operating Lease Liability)

Ecolab Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Short-term debt
Long-term debt, excluding current maturities
Total debt
Current operating lease liabilities
Noncurrent operating lease liabilities
Total debt (including operating lease liability)
Total Ecolab shareholders’ equity
Total capital (including operating lease liability)
Solvency Ratio
Debt to capital (including operating lease liability)1
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Linde plc
Sherwin-Williams Co.
Debt to Capital (including Operating Lease Liability), Sector
Chemicals
Debt to Capital (including Operating Lease Liability), Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =

2 Click competitor name to see calculations.


The analysis of the financial data reveals several key trends over the five-year period ending December 31, 2021.

Total debt (including operating lease liability)
The total debt exhibited a slight decline from 7,322,700 thousand US dollars in 2017 to 6,932,500 thousand in 2019, indicating a reduction in leverage during that time frame. However, debt levels increased again in 2020 to 7,112,700 thousand and escalated more significantly by the end of 2021, reaching 9,155,900 thousand. This pattern suggests a conservative debt management approach initially, followed by a marked increase in borrowing in the most recent year.
Total capital (including operating lease liability)
Total capital remained relatively stable from 2017 through 2019, growing modestly from 14,941,200 thousand to 15,617,800 thousand. In 2020, total capital declined notably to 13,279,200 thousand, potentially reflecting adjustments to asset base or equity components, before recovering and surpassing prior levels in 2021 to reach 16,380,100 thousand. The dip in 2020 may indicate strategic capital restructuring or impacts from external factors affecting capital investment or valuation, while the subsequent increase signals renewed capital deployment or value growth.
Debt to capital (including operating lease liability)
The ratio of debt to capital showed a downward trend from 0.49 in 2017 to 0.44 in 2019, consistent with the earlier observed reduction in debt relative to capital. However, this trend reversed sharply in 2020 and 2021, with the ratio rising to 0.54 and then 0.56, respectively. The increase indicates an elevated reliance on debt financing relative to the company’s capital base in the last two years, which aligns with the increased total debt and fluctuating capital figures.

Debt to Assets

Ecolab Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Short-term debt
Long-term debt, excluding current maturities
Total debt
 
Total assets
Solvency Ratio
Debt to assets1
Benchmarks
Debt to Assets, Competitors2
Linde plc
Sherwin-Williams Co.
Debt to Assets, Sector
Chemicals
Debt to Assets, Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Total Debt
The total debt exhibited fluctuations over the analyzed period. Initially, there was a decline from approximately $7.32 billion in 2017 to around $6.35 billion in 2019. Subsequently, the debt increased to approximately $6.69 billion in 2020 and then significantly rose to about $8.76 billion by the end of 2021. This pattern indicates a period of deleveraging followed by increased borrowing or obligations in recent years.
Total Assets
Total assets showed a generally increasing trend with some variations. From nearly $19.96 billion in 2017, total assets marginally increased to about $20.07 billion in 2018 and further to approximately $20.87 billion in 2019. There was a notable decrease in 2020 to around $18.13 billion, likely reflecting asset divestitures or valuation adjustments during that period. However, by the end of 2021, total assets rose significantly to roughly $21.21 billion, surpassing previous levels.
Debt to Assets Ratio
The debt to assets ratio demonstrated a downward trend from 0.37 in 2017 to a low of 0.30 in 2019, indicating a reduction in leverage relative to asset base during that timeframe. This trend reversed in 2020 with an increase back to 0.37, followed by a further rise to 0.41 in 2021, suggesting increasing reliance on debt financing relative to assets in recent years. The ratio values correspond with the observed trends in total debt and total assets, highlighting changes in the company’s capital structure and risk profile.

Debt to Assets (including Operating Lease Liability)

Ecolab Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Short-term debt
Long-term debt, excluding current maturities
Total debt
Current operating lease liabilities
Noncurrent operating lease liabilities
Total debt (including operating lease liability)
 
Total assets
Solvency Ratio
Debt to assets (including operating lease liability)1
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Linde plc
Sherwin-Williams Co.
Debt to Assets (including Operating Lease Liability), Sector
Chemicals
Debt to Assets (including Operating Lease Liability), Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


The financial data exhibits notable trends concerning the company's leverage and asset base over the five-year period ending in 2021.

Total Debt (Including Operating Lease Liability)
The total debt experienced a generally modest decline from 7,322,700 thousand US dollars in 2017 to 6,932,500 thousand US dollars in 2019. However, from 2019 onwards, there was a reversal in this trend, with debt increasing to 7,112,700 thousand US dollars in 2020 and significantly rising to 9,155,900 thousand US dollars by the end of 2021. This increase indicates a substantial growth in financial obligations in the most recent year.
Total Assets
The company's total assets showed moderate growth from 19,962,400 thousand US dollars in 2017 to 20,874,100 thousand US dollars in 2019, followed by a sharp contraction in 2020 to 18,126,000 thousand US dollars. The asset base rebounded strongly in 2021, reaching 21,206,400 thousand US dollars, the highest in the observed period. This pattern suggests an initial period of asset accumulation, a dip likely influenced by economic or operational factors in 2020, and a subsequent recovery.
Debt to Assets Ratio (Including Operating Lease Liability)
The debt-to-assets ratio decreased steadily between 2017 and 2019 from 0.37 to 0.33, reflecting a reduction in leverage relative to the asset base. However, this ratio increased notably in 2020 to 0.39 and further climbed to 0.43 in 2021, indicating rising financial leverage. The increase corresponds with the observed rise in total debt and fluctuations in total assets, with debt growth outpacing asset growth in the latter years.

Overall, the trends indicate a period of deleveraging followed by increased leverage, accompanied by volatility in the asset base, particularly during 2020. The rising leverage ratio in 2021 suggests a strategic shift or necessity in using more debt financing relative to assets.


Financial Leverage

Ecolab Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Total assets
Total Ecolab shareholders’ equity
Solvency Ratio
Financial leverage1
Benchmarks
Financial Leverage, Competitors2
Linde plc
Sherwin-Williams Co.
Financial Leverage, Sector
Chemicals
Financial Leverage, Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Financial leverage = Total assets ÷ Total Ecolab shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total assets
Total assets displayed a generally increasing trend over the analyzed periods, rising from approximately $19.96 billion in 2017 to about $21.21 billion in 2021. A notable decline occurred in 2020, where total assets decreased to around $18.13 billion, likely indicating an asset contraction or asset revaluation, possibly linked to external economic factors during that year. However, by 2021, total assets recovered and surpassed previous levels, reaching the highest point in the observed timeframe.
Total Ecolab shareholders’ equity
Shareholders’ equity demonstrated a fluctuating pattern, initially increasing from about $7.62 billion in 2017 to approximately $8.69 billion in 2019. In 2020, a significant drop was recorded, with equity falling to around $6.17 billion. This decline could signal losses incurred during the period or distributions affecting equity. The subsequent year showed partial recovery, with equity rising again to approximately $7.22 billion by 2021, though still below the 2019 peak.
Financial leverage
The financial leverage ratio exhibited relative stability with minor fluctuations across the years. Starting at 2.62 in 2017, it slightly decreased to 2.4 by 2019, suggesting a marginal improvement in the equity base relative to total assets or reduced reliance on debt. However, in 2020, the ratio increased substantially to 2.94 and remained at this elevated level through 2021, indicating a higher degree of leverage, which aligns with the concurrent drop in equity and total assets in 2020.

Interest Coverage

Ecolab Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Ecolab
Add: Net income attributable to noncontrolling interest
Less: Net loss from discontinued operations, net of tax
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Solvency Ratio
Interest coverage1
Benchmarks
Interest Coverage, Competitors2
Linde plc
Sherwin-Williams Co.
Interest Coverage, Sector
Chemicals
Interest Coverage, Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =

2 Click competitor name to see calculations.


Earnings before interest and tax (EBIT)
The EBIT values showed a generally positive trend from 2017 to 2019, increasing from approximately 2,039,400 thousand US dollars to 2,114,200 thousand US dollars. However, a notable decline occurred in 2020, with EBIT dropping to 1,466,200 thousand US dollars. In 2021, there was a moderate recovery to 1,644,800 thousand US dollars, though the values remained below the pre-2020 levels.
Interest Expense
Interest expense displayed a decreasing trend from 274,600 thousand US dollars in 2017 to 215,300 thousand US dollars in 2019. This decline was interrupted in 2020, when interest expenses rose sharply to 304,800 thousand US dollars, before falling again to 230,600 thousand US dollars in 2021. The fluctuations indicate variability in the company's cost of debt or changes in borrowing levels.
Interest Coverage Ratio
The interest coverage ratio improved steadily from 7.43 in 2017 to a peak of 9.82 in 2019, reflecting strengthened ability to cover interest obligations. A significant deterioration occurred in 2020, with the ratio dropping sharply to 4.81, concurrent with the reduction in EBIT and increase in interest expense. By 2021, the ratio partially recovered to 7.13 but did not return to previous peak levels, indicating continued caution around earnings relative to interest commitments.

Fixed Charge Coverage

Ecolab Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Ecolab
Add: Net income attributable to noncontrolling interest
Less: Net loss from discontinued operations, net of tax
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Add: Operating lease cost
Earnings before fixed charges and tax
 
Interest expense
Operating lease cost
Fixed charges
Solvency Ratio
Fixed charge coverage1
Benchmarks
Fixed Charge Coverage, Competitors2
Linde plc
Sherwin-Williams Co.
Fixed Charge Coverage, Sector
Chemicals
Fixed Charge Coverage, Industry
Materials

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

2 Click competitor name to see calculations.


The financial data over the five-year period reveals notable fluctuations in earnings before fixed charges and tax, fixed charges, and the fixed charge coverage ratio.

Earnings before fixed charges and tax
This metric showed a slight decline from 2,278,400 thousand US dollars in 2017 to 2,251,800 thousand in 2018, followed by an increase to 2,333,600 thousand in 2019. However, there was a significant drop in 2020 to 1,650,000 thousand, before recovering moderately to 1,824,200 thousand in 2021. The trend indicates volatility with a peak in 2019 and a sharp reduction during the pandemic year of 2020, partially recovering afterward.
Fixed charges
Fixed charges decreased steadily from 513,600 thousand in 2017 to 410,000 thousand in 2021, with the exception of an uptick in 2020 to 488,600 thousand. This suggests some cost management or restructuring efforts over the period, despite a temporary increase in the pandemic year.
Fixed charge coverage ratio
The ratio, which measures the ability to cover fixed charges with earnings, improved from 4.44 in 2017 to 5.37 in 2019, reflecting stronger coverage. However, it deteriorated sharply to 3.38 in 2020, aligning with the earnings decline that year. The ratio rebounded to 4.45 in 2021 but did not reach pre-2020 levels, indicating some ongoing challenges in fixed charge coverage.

Overall, the data indicates that the company experienced stable to improving earnings and coverage until 2019, encountered significant stress in 2020 likely due to external factors impacting earnings, and began recovering in 2021. Fixed charges were generally reduced over the period, aside from a peak in 2020. The fixed charge coverage ratio's volatility corresponds closely with the earnings fluctuations, highlighting sensitivity to operating performance.