Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Ecolab Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ecolab Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ecolab Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ecolab Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ecolab Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Ecolab Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Gross Profit Margin
Ecolab Inc., gross profit margin 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) | ||||||
| Gross profit | 5,117,300) | 4,884,400) | 6,182,900) | 6,042,300) | 6,433,200) | |
| Net sales | 12,733,100) | 11,790,200) | 14,906,300) | 14,668,200) | 13,838,300) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 40.19% | 41.43% | 41.48% | 41.19% | 46.49% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Linde plc | 43.03% | 43.53% | 41.04% | — | — | |
| Sherwin-Williams Co. | 42.83% | 47.29% | 44.89% | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 5,117,300 ÷ 12,733,100 = 40.19%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ecolab Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Operating Profit Margin
Ecolab Inc., operating profit margin 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) | ||||||
| Operating income | 1,598,600) | 1,395,700) | 2,013,800) | 1,947,000) | 2,019,800) | |
| Net sales | 12,733,100) | 11,790,200) | 14,906,300) | 14,668,200) | 13,838,300) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 12.55% | 11.84% | 13.51% | 13.27% | 14.60% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Linde plc | 16.19% | 12.19% | 10.39% | — | — | |
| Sherwin-Williams Co. | 12.83% | 15.58% | 12.78% | — | — | |
| Operating Profit Margin, Sector | ||||||
| Chemicals | 14.87% | 13.56% | 11.32% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Materials | 21.62% | 14.41% | 10.43% | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 1,598,600 ÷ 12,733,100 = 12.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ecolab Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Net Profit Margin
Ecolab Inc., net profit margin 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 income (loss) attributable to Ecolab | 1,129,900) | (1,205,100) | 1,558,900) | 1,429,100) | 1,508,400) | |
| Net sales | 12,733,100) | 11,790,200) | 14,906,300) | 14,668,200) | 13,838,300) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 8.87% | -10.22% | 10.46% | 9.74% | 10.90% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Linde plc | 12.42% | 9.18% | 8.09% | — | — | |
| Sherwin-Williams Co. | 9.35% | 11.06% | 8.61% | — | — | |
| Net Profit Margin, Sector | ||||||
| Chemicals | 11.22% | 9.94% | 8.29% | — | — | |
| Net Profit Margin, Industry | ||||||
| Materials | 13.59% | 8.58% | 5.93% | — | — | |
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 profit margin = 100 × Net income (loss) attributable to Ecolab ÷ Net sales
= 100 × 1,129,900 ÷ 12,733,100 = 8.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ecolab Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Return on Equity (ROE)
Ecolab Inc., ROE 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 income (loss) attributable to Ecolab | 1,129,900) | (1,205,100) | 1,558,900) | 1,429,100) | 1,508,400) | |
| Total Ecolab shareholders’ equity | 7,224,200) | 6,166,500) | 8,685,300) | 8,003,200) | 7,618,500) | |
| Profitability Ratio | ||||||
| ROE1 | 15.64% | -19.54% | 17.95% | 17.86% | 19.80% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Linde plc | 8.69% | 5.29% | 4.66% | — | — | |
| Sherwin-Williams Co. | 76.50% | 56.23% | 37.38% | — | — | |
| ROE, Sector | ||||||
| Chemicals | 12.24% | 8.90% | 7.19% | — | — | |
| ROE, Industry | ||||||
| Materials | 16.54% | 8.40% | 5.74% | — | — | |
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
ROE = 100 × Net income (loss) attributable to Ecolab ÷ Total Ecolab shareholders’ equity
= 100 × 1,129,900 ÷ 7,224,200 = 15.64%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ecolab Inc. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Return on Assets (ROA)
Ecolab Inc., ROA 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 income (loss) attributable to Ecolab | 1,129,900) | (1,205,100) | 1,558,900) | 1,429,100) | 1,508,400) | |
| Total assets | 21,206,400) | 18,126,000) | 20,869,100) | 20,074,500) | 19,962,400) | |
| Profitability Ratio | ||||||
| ROA1 | 5.33% | -6.65% | 7.47% | 7.12% | 7.56% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Linde plc | 4.69% | 2.83% | 2.64% | — | — | |
| Sherwin-Williams Co. | 9.02% | 9.95% | 7.52% | — | — | |
| ROA, Sector | ||||||
| Chemicals | 5.56% | 4.17% | 3.57% | — | — | |
| ROA, Industry | ||||||
| Materials | 6.65% | 3.40% | 2.43% | — | — | |
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
ROA = 100 × Net income (loss) attributable to Ecolab ÷ Total assets
= 100 × 1,129,900 ÷ 21,206,400 = 5.33%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Ecolab Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |