Ecolab Inc.
_________________________________________________________________________________
Ecolab Inc. Financial Snapshot
Operating Performance
Fast Facts
370 N. Wabasha Street, ST. PAUL, 55102- The company reported revenue of US$6,799 million
Headquarters Address
2233,United States of America during the fiscal year 2011 (2011). The company's
revenue grew at a CAGR of 5.59% during 2007–
Telephone + 1 651 2922233
2011, with an annual growth of 11.64% over 2010. In
2011, the company recorded an operating margin of
Fax N/A 11.09%, as against 13.25% in 2010.
Website www.ecolab.com
Revenue and Margins
Ticker Symbol, Stock Exchange ECL, New York Stock Exchange
Number of Employees 40,200
Fiscal Year End December
Revenue (in US$ million) 6,799
SWOT Analysis
Strengths Weaknesses Return on Equity
Broad offerings Significant pension benefit obligations The company recorded a return on equity (ROE) of
8.16% for 2011, as compared to its peers, Rollins,
Inc. (Ticker: ROL), Sanix Incorporated (Ticker: 4651)
Global presence and Rentokil Initial plc (Ticker: RTO), which recorded
ROEs of 31.08%, 0.70% and 0.00% respectively. The
Strong financial performance company reported an operating margin of 11.09% in
2011.
Opportunities Threats
Return on Equity
Expanding presence in energy services
Changing technology
market
Exploring Latin American food and
Foreign exchange risks
beverage business
Government regulations
Liquidity Position
The company reported a current ratio of 1.70 in 2011,
as compared to its peers, Rollins, Inc., Sanix
Incorporated and Rentokil Initial plc, which recorded
current ratios of 0.78, 0.85 and 0.82 respectively. As
of December 2011, the company recorded cash and
short-term investments of worth US$1,844 million,
against US$7 million current debt. The company
reported a debt to equity ratio of 1.35 in 2011 as
compared to its peers, Rollins, Inc., Sanix
Incorporated and Rentokil Initial plc, which recorded
debt to equity ratios of 0.00, 1.10 and -9.20
respectively.
___________________________________________________________________________________________
Ecolab Inc. - SWOT Profile Page 1
Ecolab Inc.
_________________________________________________________________________________
TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ......................................................................................................................................... 5
1.2 Business Description ....................................................................................................................................... 5
1.3 Major Products and Services ........................................................................................................................... 6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 7
2.2 Key Financial Performance Indicators ............................................................................................................ 10
2.2.1 Revenue and Operating Profit.................................................................................................................... 10
2.2.2 Asset and Liabilities ................................................................................................................................... 11
2.2.3 Net Debt vs. Gearing Ratio ........................................................................................................................ 12
2.2.4 Operational Efficiency ................................................................................................................................ 13
2.2.5 Solvency ................................................................................................................................................... 14
2.2.6 Valuation ................................................................................................................................................... 15
2.3 Competitive Benchmarking ............................................................................................................................ 16
2.3.1 Market Capitalization ................................................................................................................................. 16
2.3.2 Efficiency................................................................................................................................................... 17
2.3.3 Turnover – Inventory and Asset ................................................................................................................. 18
3 SWOT Analysis ...................................................................................................................................... 19
3.1 SWOT Analysis - Overview ............................................................................................................................ 19
3.2 Strengths ....................................................................................................................................................... 19
3.3 Weaknesses .................................................................................................................................................. 19
3.4 Opportunities ................................................................................................................................................. 19
3.5 Threats .......................................................................................................................................................... 20
4 History .................................................................................................................................................... 21
5 Key Employees ...................................................................................................................................... 23
6 Key Employee Biographies ................................................................................................................... 25
7 Locations and Subsidiaries .................................................................................................................. 26
7.1 Head Office ................................................................................................................................................... 26
7.2 Other Locations and Subsidiaries .................................................................................................................. 26
8 Appendix ................................................................................................................................................ 27
8.1 Methodology .................................................................................................................................................. 27
8.2 Ratio Definitions ............................................................................................................................................ 27
8.3 Disclaimer ..................................................................................................................................................... 31
___________________________________________________________________________________________
Ecolab Inc. - SWOT Profile Page 2
Ecolab Inc.
__________________________________________________________________________________________
List of Tables