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ECL (Ecolab) Interest Coverage : 8.49 (As of Jun. 2024)


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What is Ecolab Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ecolab's Operating Income for the three months ended in Jun. 2024 was $669 Mil. Ecolab's Interest Expense for the three months ended in Jun. 2024 was $-79 Mil. Ecolab's interest coverage for the quarter that ended in Jun. 2024 was 8.49. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ecolab's Interest Coverage or its related term are showing as below:

ECL' s Interest Coverage Range Over the Past 10 Years
Min: 5.17   Med: 7.24   Max: 9.17
Current: 8.07


ECL's Interest Coverage is ranked worse than
59.18% of 1193 companies
in the Chemicals industry
Industry Median: 9.97 vs ECL: 8.07

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Ecolab Interest Coverage Historical Data

The historical data trend for Ecolab's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Ecolab Interest Coverage Chart

Ecolab Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.17 5.17 7.38 6.76 6.03

Ecolab Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.60 6.53 7.63 8.49 10.12

Competitive Comparison of Ecolab's Interest Coverage

For the Specialty Chemicals subindustry, Ecolab's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ecolab's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ecolab's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ecolab's Interest Coverage falls into.



Ecolab Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ecolab's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Ecolab's Interest Expense was $-349 Mil. Its Operating Income was $2,104 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,977 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*2103.7/-348.9
=6.03

Ecolab's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Ecolab's Interest Expense was $-79 Mil. Its Operating Income was $669 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,977 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*669.1/-78.8
=8.49

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Ecolab  (NYSE:ECL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Ecolab Interest Coverage Related Terms

Thank you for viewing the detailed overview of Ecolab's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Ecolab Business Description

Address
1 Ecolab Place, Saint Paul, MN, USA, 55102
Ecolab produces and markets cleaning and sanitation products for the industrial manufacturing, hospitality, healthcare, and life sciences markets. The firm is the global market share leader in this category with a wide array of products and services, including dish and laundry washing systems, pest control, and infection control products. Additionally, Ecolab sells customized water management solutions across its end markets. The company has a strong hold on the US market and is growing its presence abroad.
Executives
Victoria Reich director UNITED STATIONERS SUPPLY CO, ONE PARKWAY NORTH BLVD SUITE 100, LAKE FOREST IL 60045
Gregory B Cook officer: EVP & PRES - INST GROUP 1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicholas J. Alfano officer: EVP & PRES - GLOBAL INDUSTRIAL 1 ECOLAB PLACE, SAINT PAUL MN 55102
Laurie M Marsh officer: Senior VP - Human Resources 1601 W. DIEHL ROAD, NAPERVILLE IL 60563
David Maclennan director 14701 CHARLSON ROAD, EDEN PRAIRIE MN 55347
Arthur J Higgins director C/O ZIMMER, INC., P.O. BOX 708, WARSAW IN 46580
Jennifer J Bradway officer: SVP & CORPORATE CONTROLLER 1 ECOLAB PLACE, ST. PAUL MN 55102
Angela M Busch officer: SVP - Corporate Development 1 ECOLAB PLACE, SAINT PAUL MN 55102
Nicolas A Granucci officer: EVP & PRES - GLOBAL PEST 1 ECOLAB PLACE, SAINT PAUL MN 55102
Larry L Berger officer: Chief Technical Officer & SVP 1 ECOLAB PLACE, SAINT PAUL MN 55102
Gail Peterson officer: SVP - Global Mktg & Comms 1 ECOLAB PLACE, SAINT PAUL MN 55102
Christophe Beck officer: Executive V.P., Instit. NA 370 WABASHA STREET NORTH, SAINT PAUL MN 55102
Eric Mark Green director 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Gates William H Iii 10 percent owner 2365 CARILLON POINT, KIRKLAND WA 98033
Michael C. Mccormick officer: Ex.VP, GC & Asst. Secretary 1 ECOLAB PLACE, ST. PAUL MN 55102