Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Ecolab Inc., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Ecolab Inc. net fixed asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Ecolab Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2019 to 2020 and from 2020 to 2021. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Ecolab Inc. total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Ecolab Inc. equity turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Net Fixed Asset Turnover
Ecolab Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 12,733,100) | 11,790,200) | 14,906,300) | 14,668,200) | 13,838,300) | |
| Property, plant and equipment, net | 3,288,500) | 3,124,900) | 3,954,900) | 3,836,000) | 3,707,100) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 3.87 | 3.77 | 3.77 | 3.82 | 3.73 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Linde plc | 1.18 | 0.94 | 0.97 | — | — | |
| Sherwin-Williams Co. | 10.68 | 10.01 | 9.75 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Chemicals | 1.81 | 1.49 | — | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Materials | 1.27 | 0.99 | — | — | — | |
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 12,733,100 ÷ 3,288,500 = 3.87
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Ecolab Inc. net fixed asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Ecolab Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 12,733,100) | 11,790,200) | 14,906,300) | 14,668,200) | 13,838,300) | |
| Property, plant and equipment, net | 3,288,500) | 3,124,900) | 3,954,900) | 3,836,000) | 3,707,100) | |
| Operating lease assets | 396,800) | 423,800) | 577,500) | —) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 3,685,300) | 3,548,700) | 4,532,400) | 3,836,000) | 3,707,100) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.46 | 3.32 | 3.29 | 3.82 | 3.73 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Linde plc | 1.14 | 0.91 | 0.94 | — | — | |
| Sherwin-Williams Co. | 5.41 | 5.11 | 5.08 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Chemicals | 1.65 | 1.37 | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Materials | 1.21 | 0.95 | — | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 12,733,100 ÷ 3,685,300 = 3.46
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Ecolab Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2019 to 2020 and from 2020 to 2021. |
Total Asset Turnover
Ecolab Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 12,733,100) | 11,790,200) | 14,906,300) | 14,668,200) | 13,838,300) | |
| Total assets | 21,206,400) | 18,126,000) | 20,869,100) | 20,074,500) | 19,962,400) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.60 | 0.65 | 0.71 | 0.73 | 0.69 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Linde plc | 0.38 | 0.31 | 0.33 | — | — | |
| Sherwin-Williams Co. | 0.97 | 0.90 | 0.87 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Chemicals | 0.50 | 0.42 | — | — | — | |
| Total Asset Turnover, Industry | ||||||
| Materials | 0.49 | 0.40 | — | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 12,733,100 ÷ 21,206,400 = 0.60
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Ecolab Inc. total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Equity Turnover
Ecolab Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 12,733,100) | 11,790,200) | 14,906,300) | 14,668,200) | 13,838,300) | |
| Total Ecolab shareholders’ equity | 7,224,200) | 6,166,500) | 8,685,300) | 8,003,200) | 7,618,500) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.76 | 1.91 | 1.72 | 1.83 | 1.82 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Linde plc | 0.70 | 0.58 | 0.58 | — | — | |
| Sherwin-Williams Co. | 8.18 | 5.09 | 4.34 | — | — | |
| Equity Turnover, Sector | ||||||
| Chemicals | 1.09 | 0.90 | — | — | — | |
| Equity Turnover, Industry | ||||||
| Materials | 1.22 | 0.98 | — | — | — | |
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
Equity turnover = Net sales ÷ Total Ecolab shareholders’ equity
= 12,733,100 ÷ 7,224,200 = 1.76
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Ecolab Inc. equity turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |