Inventory Disclosure
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Item | Description | The company |
---|---|---|
Inventories | Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. | Sherwin-Williams Co. inventories decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Adjustment to Inventory: Conversion from LIFO to FIFO
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Sherwin-Williams Co. inventory value on Dec 31, 2021 would be $2,520,200) (in thousands) if the FIFO inventory method was used instead of LIFO. Sherwin-Williams Co. inventories, valued on a LIFO basis, on Dec 31, 2021 were $1,927,200). Sherwin-Williams Co. inventories would have been $593,000) higher than reported on Dec 31, 2021 if the FIFO method had been used instead.
Sherwin-Williams Co., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Financial ratio | Description | The company |
---|---|---|
Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by current liabilities. | Sherwin-Williams Co. adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by revenue. | Sherwin-Williams Co. adjusted net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Sherwin-Williams Co. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Sherwin-Williams Co. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021. |
Adjusted ROE | A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. | Sherwin-Williams Co. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021. |
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | Sherwin-Williams Co. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021. |
Sherwin-Williams Co., Financial Ratios: Reported vs. Adjusted
Adjusted Current Ratio
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= 5,053,700 ÷ 5,719,500 = 0.88
2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,646,700 ÷ 5,719,500 = 0.99
Liquidity ratio | Description | The company |
---|---|---|
Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by current liabilities. | Sherwin-Williams Co. adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,864,400 ÷ 19,944,600 = 9.35%
2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,145,300 ÷ 19,944,600 = 10.76%
Profitability ratio | Description | The company |
---|---|---|
Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by revenue. | Sherwin-Williams Co. adjusted net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Adjusted Total Asset Turnover
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 Total asset turnover = Net sales ÷ Total assets
= 19,944,600 ÷ 20,666,700 = 0.97
2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 19,944,600 ÷ 21,259,700 = 0.94
Activity ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Sherwin-Williams Co. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Adjusted Financial Leverage
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 Financial leverage = Total assets ÷ Shareholders’ equity
= 20,666,700 ÷ 2,437,200 = 8.48
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 21,259,700 ÷ 3,030,200 = 7.02
Solvency ratio | Description | The company |
---|---|---|
Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Sherwin-Williams Co. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021. |
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,864,400 ÷ 2,437,200 = 76.50%
2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 2,145,300 ÷ 3,030,200 = 70.80%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROE | A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. | Sherwin-Williams Co. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021. |
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,864,400 ÷ 20,666,700 = 9.02%
2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,145,300 ÷ 21,259,700 = 10.09%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as adjusted net income divided by adjusted total assets. | Sherwin-Williams Co. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021. |