Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Sherwin-Williams Co. (NYSE:SHW)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Sherwin-Williams Co., adjustment to net income

US$ in thousands

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (as reported) 2,030,400  1,541,300  1,108,746  1,772,262  1,132,703 
Add: Unrealized net gains (losses) on available-for sale securities —  —  —  1,306  1,135 
Net income (adjusted) 2,030,400  1,541,300  1,108,746  1,773,568  1,133,838 

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Sherwin-Williams Co., adjusted profitability ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 11.06% 8.61% 6.32% 11.83% 9.55%
Adjusted net profit margin 11.06% 8.61% 6.32% 11.84% 9.56%
Return on Equity (ROE)
Reported ROE 56.23% 37.38% 29.72% 48.00% 60.30%
Adjusted ROE 56.23% 37.38% 29.72% 48.04% 60.36%
Return on Assets (ROA)
Reported ROA 9.95% 7.52% 5.79% 8.88% 16.77%
Adjusted ROA 9.95% 7.52% 5.79% 8.89% 16.79%

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Sherwin-Williams Co.’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Sherwin-Williams Co.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Sherwin-Williams Co.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.

Sherwin-Williams Co., Profitability Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Net income 2,030,400  1,541,300  1,108,746  1,772,262  1,132,703 
Net sales 18,361,700  17,900,800  17,534,493  14,983,788  11,855,602 
Profitability Ratio
Net profit margin1 11.06% 8.61% 6.32% 11.83% 9.55%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 2,030,400  1,541,300  1,108,746  1,773,568  1,133,838 
Net sales 18,361,700  17,900,800  17,534,493  14,983,788  11,855,602 
Profitability Ratio
Adjusted net profit margin2 11.06% 8.61% 6.32% 11.84% 9.56%

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22).

2020 Calculations

1 Net profit margin = 100 × Net income ÷ Net sales
= 100 × 2,030,400 ÷ 18,361,700 = 11.06%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,030,400 ÷ 18,361,700 = 11.06%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Sherwin-Williams Co.’s adjusted net profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Net income 2,030,400  1,541,300  1,108,746  1,772,262  1,132,703 
Shareholders’ equity 3,610,800  4,123,300  3,730,745  3,692,188  1,878,441 
Profitability Ratio
ROE1 56.23% 37.38% 29.72% 48.00% 60.30%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 2,030,400  1,541,300  1,108,746  1,773,568  1,133,838 
Shareholders’ equity 3,610,800  4,123,300  3,730,745  3,692,188  1,878,441 
Profitability Ratio
Adjusted ROE2 56.23% 37.38% 29.72% 48.04% 60.36%

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22).

2020 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 2,030,400 ÷ 3,610,800 = 56.23%

2 Adjusted ROE = 100 × Adjusted net income ÷ Shareholders’ equity
= 100 × 2,030,400 ÷ 3,610,800 = 56.23%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Sherwin-Williams Co.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in thousands)
Net income 2,030,400  1,541,300  1,108,746  1,772,262  1,132,703 
Total assets 20,401,600  20,496,200  19,134,279  19,958,427  6,752,521 
Profitability Ratio
ROA1 9.95% 7.52% 5.79% 8.88% 16.77%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income 2,030,400  1,541,300  1,108,746  1,773,568  1,133,838 
Total assets 20,401,600  20,496,200  19,134,279  19,958,427  6,752,521 
Profitability Ratio
Adjusted ROA2 9.95% 7.52% 5.79% 8.89% 16.79%

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22).

2020 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 2,030,400 ÷ 20,401,600 = 9.95%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 2,030,400 ÷ 20,401,600 = 9.95%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Sherwin-Williams Co.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.