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Ecolab Interest Coverage

: 7.49 (As of Jun. 2022)
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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. 2022 was $429 Mil. Ecolab's Interest Expense for the three months ended in Jun. 2022 was $-57 Mil. Ecolab's interest coverage for the quarter that ended in Jun. 2022 was 7.49. 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: 5.02   Med: 7.24   Max: 9.17
Current: 6.88


ECL's Interest Coverage is ranked worse than
74.98% of 1211 companies
in the Chemicals industry
Industry Median: 18.62 vs ECL: 6.88

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.

* Premium members only.

Ecolab Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.09 7.82 9.17 5.17 7.38

Ecolab Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 9.00 6.03 9.69 5.06 7.49

Competitive Comparison

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 Interest Coverage Distribution

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Ecolab's Interest Expense was $-231 Mil. Its Operating Income was $1,701 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,630 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*1701.2/-230.6
=7.38

Ecolab's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Ecolab's Interest Expense was $-57 Mil. Its Operating Income was $429 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,460 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*429.4/-57.3
=7.49

* 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

Ecolab logo
Address
1 Ecolab Place, Saint Paul, MN, USA, 55102
Ecolab produces and markets cleaning and sanitation products for the hospitality, healthcare, and industrial 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. The company has a strong hold on the U.S. market and is looking to increase its profitability abroad. Additionally, Ecolab serves customers in water, manufacturing, and life sciences end markets, selling customized solutions.
Executives
Sved Gergely officer: EVP & PRES - HC & LIFE SCI 1 ECOLAB PLACE ST. PAUL MN 55102
Bradway Jennifer J officer: SVP & CORPORATE CONTROLLER 1 ECOLAB PLACE ST. PAUL MN 55102
De Boo Alexander A. officer: EVP & PRES - GLOBAL MARKETS 1 ECOLAB PLACE SAINT PAUL MN 55102
Peterson Gail officer: SVP - Global Mktg & Comms 1 ECOLAB PLACE SAINT PAUL MN 55102
Charton Jerome officer: EVP - Global Regions 1 ECOLAB PLACE SAINT PAUL MN 55102
Duijser Machiel officer: EVP & CSCO 1 ECOLAB PLACE ST. PAUL MN 55102
Zillmer John J director ARAMARK CORP 1101 MARKET ST PHILADELPHIA PA 19107
Biller Leslie S director 10877 WILSHIRE BLVD 17TH FLOOR LOS ANGELES CA 90024
Mckibben Tracy B director 100 RIVERSIDE BOULEVARD #3S NEW YORK NY 10069
Reich Victoria director UNITED STATIONERS SUPPLY CO ONE PARKWAY NORTH BLVD SUITE 100 LAKE FOREST IL 60045
Ettinger Jeffrey M director 1 HORMEL PLACE AUSTINE MN 55912
Beck Barbara director 5301 N IRONWOOD RD MILWAUKEE WI 53217
Higgins Arthur J director C/O ZIMMER, INC. P.O. BOX 708 WARSAW IN 46580
Larson Michael director 2365 CARILLON POINT KIRKLAND WA 98033
Maclennan David director 14701 CHARLSON ROAD EDEN PRAIRIE MN 55347

Ecolab Headlines

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