Background information on Ecolab Inc. (Essay Sample)

TIM HORTONSANALYSIS
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Background information on Ecolab Inc.
Ecolab Inc is a global leader in the provision of water, hygiene and energy technologies to the households, hospitality, foodservice, healthcare, industrial and energy markets. By so doing, it ensures that people get access to clean water, safe food, sufficient energy and a healthy environment through cleaning and sanitizing products; water treatment, pollution control and energy conservation technologies.
Merit Osbon, a travelling sales man in 1923 established Economics Laboratory, a company that developed a product that would help solve the many problems experienced in hotels and guestrooms in cleaning carpets. It was headquartered at St. Pauls Minnesota. The company would later diversify into production of so many other products. In 1950, it established its first international subsidiary in Sweden before becoming a public traded corporation in1957 and in 1986; the company changed its name to Ecolab Inc.
Its tremendous growth has seen it make major acquisitions in various industries including Nalco Holding Co. Inc in December 2011and Champion Technologies in April 2013.Most recently, it acquired AkzoNobelB.V.’sPurate in July 2014 , EXL Laboratories, LLC and Hyprod Canada in November 2014. Douglas M. Baker is the current Chief Executive officer and oversees about 47,000 staffs in more than 170 countries.
Ecolab is a market leader with a very big market presence both in the USA and globally Some of its competitors include Enviroform Industries, FSG Manufacturing LLC ,USA Detergents Inc, Priority Biocidal, LLCAbbott LaboratoriesandAfton Chemicals.
In 2010 Ecolab was ranked number 365 in Fortune 500 magazine and also named one of the "World's Most Ethical Companies" by the Ethisphere Institute in 2011. Ecolab’s 2017 targets include; a 25% reduction in effluent discharge and waste, 20% Reduction in water use and 10% reduction in Green House Gas emissions as it strives to achieve its Vision.
ANALYSIS OF THE FINANCIAL STATEMENTS;
Sales have been rising year in year out. Looking at the period 2013-2014, net sales increased by 7.75% while cost of goods sold in the same period increased by 7.23% resulting to a 8.36% increase in gross margin. This is good news to Ecolab shareholders. This applies to all the other years under consideration. The same trend is observed in the previous years.Operating income has been increasing for the period, 2013-2014 by 25.27%, 2012-2013 by 21.04% and by 71.04 % for the period 2011-2012. This is a sign of positive growthNet Income for the four years has also been increasing substantially. For the periods; 2011-2012 by 52%, 2012-2013 by 38% and 2013-2014 by 24%.This demonstrates good earnings by Ecolab’s inve...