Business Analysis of Ecolab

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Ecolab

Business Overview

Ecolab Inc. provides water, hygiene, and energy technologies and services for customers worldwide. The company operates in three segments: Global Industrial, Global Institutional, and Global Energy. The Global Industrial segment provides water treatment and process applications, and cleaning and sanitizing solutions primarily to large industrial customers within the manufacturing, food and beverage processing, chemical, mining and primary metals, power generation, pulp and paper, and commercial laundry industries. The Global Institutional segment offers specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, healthcare, government and education, and retail industries. The Global Energy segment provides the process chemicals and water treatment needs of the petroleum and petrochemical industries in upstream and downstream applications. The company also offers pest elimination services to detect, eliminate, and prevent pests, such as rodents and insects, in restaurants, food and beverage processors, educational and healthcare facilities, hotels, quick service restaurant and grocery operations, and other institutional and commercial customers; and equipment repair, maintenance, and preventive maintenance services for the commercial food service industry. Ecolab Inc. sells its products through field sales personnel, corporate account personnel, distributors, and dealers. Ecolab Inc. was founded in 1923 and is headquartered in St. Paul, Minnesota.

Ecolab

Ecolab


R&P Rank: 215
Sector: Industrial Support Services
Industry:Environmental Services
H.Q Location:Minnesota
Website: www.ecolab.com
Company Address:
ECOLAB CORPORATE CENTER, 370 WABASHA STREET NORTH, SAINT PAUL MN 55102
Ph:651-250-2587

Business Analysis of Ecolab

The Industrial Support Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Ecolab compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Ecolab to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Ecolab with an interactive chart.

  1. Revenue Growth: Ecolab reported a revenue growth of -2.9% year-on-year during 2016. Environmental Services Industry grew at 1.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Ecolab spent 52.5% of its total revenues on COGS. Environmental Services industry average (COGS share of revenue) in the same period was 60.0%
  3. R&D share of Revenues: Ecolab R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Ecolab spent 32.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Environmental Services industry average SG&A spending in the same period was 18.6%
  5. Inventory share of Revenues: As a percentage of revenue, Ecolab spent 10.0% of its total revenues on Inventories. Environmental Services industry average Inventory spending in the same period was 3.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Ecolab invested 7.5% of its total revenues on Accounts Payable (A/P) Environmental Services industry average Accounts Payable investment in the same period was 6.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Ecolab invested 17.8% of its total revenues on Accounts Receivable (A/R). Environmental Services industry average Accounts Receivable investment in the same period was 15.9%
  8. PP&E share of Revenues: As a percentage of revenue, Ecolab invested 25.6% of its total revenues on Property, Plants, and Equipments (PP&E). Environmental Services industry average PPE investment in the same period was 57.8%
  9. Intangibles share of Revenues: As a percentage of revenue, Ecolab invested 77.6% of its total revenues on Intangibles. Environmental Services industry average Intangibles investment in the same period was 79.7%
  10. Net Margins: Ecolab Net Margins in the year 2016 were 9.3%. Environmental Services industry average Net Margins in the same period were 6.7%

Sector and Industry Association of Ecolab

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Ecolab is associated with Industrials Sector Group, Industrial Support Services Sector, and Environmental Services Industry.

Industrial Support Services sector is comprised of the following industries: Business Services; Consulting Services, Training and Professional Services; Staffing & Outsourcing Services; Environmental Services. The definitions for each of the industries is as follows:

  • Business Services industry includes providers of non financial services to a wide range of industrial enterprises and governments. This industry includes providers of uniform companies, Staffing and Outsourcing companies, office cleaning services, and companies that install, service and monitor alarm and security systems.
  • Consulting Services, Training and Professional Services industry includes companies that offer management consulting services to both public and Governmental agencies.
  • Staffing & Outsourcing Services industry includes companies providing contract, temporary, as well as permanent staff to clients with specific employment requirements. These companies also provide payroll and human resources outsourcing solutions for small and medium-sized businesses.
  • Environmental Services industry includes companies that provide consulting and services for pollution reduction and control, recycling, waste-to-energy conversion, and hazardous waste management.

Industry Ranking of Ecolab

With $13.2 billion revenues, Ecolab ranked number 2 of all the companies in the US Environmental Services industry. There were a total of 16 public companies in the US Environmental Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Environmental Services industry by revenues during 2016 were:

  1. Waste Management ($13.6 billion)
  2. Ecolab ($13.2 billion)
  3. Republic Services ($9.4 billion)
  4. Stericycle ($3.6 billion)
  5. Clean Harbors ($2.8 billion)
  6. Advanced Disposal Services ($1.4 billion)
  7. Casella Waste Systems ($565 million)
  8. Calgon Carbon ($514.2 million)
  9. US Ecology ($477.7 million)
  10. CECO Environmental ($417 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Ecolaband its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of ecolab

Waste Management (WM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Waste Management Inc with $14 billion revenues in the year 2016 was the number 1 Environmental Services company. Read this report to know the top competitors of Waste Management and identify growth and cost optimization opportunities of Waste Management

Republic Services (RSG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Republic Services, Inc. with $9 billion revenues in the year 2016 was the number 3 Environmental Services company. Read this report to know the top competitors of Republic Services and identify growth and cost optimization opportunities of Republic Services

Stericycle (SRCL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Stericycle Inc with $4 billion revenues in the year 2016 was the number 4 Environmental Services company. Read this report to know the top competitors of Stericycle and identify growth and cost optimization opportunities of Stericycle

Clean Harbors (CLH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Clean Harbors Inc with $3 billion revenues in the year 2016 was the number 5 Environmental Services company. Read this report to know the top competitors of Clean Harbors and identify growth and cost optimization opportunities of Clean Harbors

Advanced Disposal Services (ADSW) Business Analysis – Analyze Historical Performance, Strategic...

Advanced Disposal Services, Inc. with $1 billion revenues in the year 2016 was the number 6 Environmental Services company. Read this report to know the top competitors of Advanced Disposal Services and identify growth and cost optimization opportunities of Advanced Disposal Services

Casella Waste Systems (CWST) Business Analysis – Analyze Historical Performance, Strategic...

Casella Waste Systems Inc with $565 million revenues in the year 2016 was the number 7 Environmental Services company. Read this report to know the top competitors of Casella Waste Systems and identify growth and cost optimization opportunities of Casella Waste Systems

Revenues Analysis

Ecolab (ECL) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Ecolab Inc. (ECL) from 2012 to 2016. Ecolab generated a total of $13.2 billion revenues during 2016. Ecolab reported a revenue growth of -2.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Ecolab (ECL) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Ecolab Inc. (ECL) from 2002 to 2016. Ecolab generated a total of $13.2 billion revenues during 2016. Ecolab reported a revenue growth of -2.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Ecolab (ECL) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Ecolab Inc. (ECL) revenue growth with Environmental Services industry growth during the last five years from 2012 to 2016. Ecolab reported a revenue growth of -2.9% year-over-year during 2016. The Environmental Services industry growth was 1.4% year-over-year during 2016. Ecolab growth was slower than the industry during 2016.

Profit Analysis

Ecolab (ECL) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Ecolab Inc. (ECL) from 2012 to 2016. Ecolab reported a total net income of $1.2 billion during 2016. Ecolab generated a total of $13.2 billion revenues during 2016. Ecolab net profit margin was 9.3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.