Sherwin-Williams Co., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (as reported)	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,772,262)
Add: Unrealized net gains (losses) on available-for sale securities	—)	—)	—)	—)	1,306)
Net income (adjusted)	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,773,568)

Download chart

Sherwin-Williams Co., adjusted profitability ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net Profit Margin
Reported net profit margin	9.35%	11.06%	8.61%	6.32%	11.83%
Adjusted net profit margin	9.35%	11.06%	8.61%	6.32%	11.84%
Return on Equity (ROE)
Reported ROE	76.50%	56.23%	37.38%	29.72%	48.00%
Adjusted ROE	76.50%	56.23%	37.38%	29.72%	48.04%
Return on Assets (ROA)
Reported ROA	9.02%	9.95%	7.52%	5.79%	8.88%
Adjusted ROA	9.02%	9.95%	7.52%	5.79%	8.89%

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 not reaching 2019 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by 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 total assets.	Sherwin-Williams Co. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Download chart

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,772,262)
Net sales	19,944,600)	18,361,700)	17,900,800)	17,534,493)	14,983,788)
Profitability Ratio
Net profit margin¹	9.35%	11.06%	8.61%	6.32%	11.83%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,773,568)
Net sales	19,944,600)	18,361,700)	17,900,800)	17,534,493)	14,983,788)
Profitability Ratio
Adjusted net profit margin²	9.35%	11.06%	8.61%	6.32%	11.84%

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 × 1,864,400 ÷ 19,944,600 = 9.35%

Download chart

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 not reaching 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,772,262)
Shareholders’ equity	2,437,200)	3,610,800)	4,123,300)	3,730,745)	3,692,188)
Profitability Ratio
ROE¹	76.50%	56.23%	37.38%	29.72%	48.00%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,773,568)
Shareholders’ equity	2,437,200)	3,610,800)	4,123,300)	3,730,745)	3,692,188)
Profitability Ratio
Adjusted ROE²	76.50%	56.23%	37.38%	29.72%	48.04%

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 ÷ Shareholders’ equity
= 100 × 1,864,400 ÷ 2,437,200 = 76.50%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Sherwin-Williams Co. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,772,262)
Total assets	20,666,700)	20,401,600)	20,496,200)	19,134,279)	19,958,427)
Profitability Ratio
ROA¹	9.02%	9.95%	7.52%	5.79%	8.88%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,773,568)
Total assets	20,666,700)	20,401,600)	20,496,200)	19,134,279)	19,958,427)
Profitability Ratio
Adjusted ROA²	9.02%	9.95%	7.52%	5.79%	8.89%

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 ÷ Total assets
= 100 × 1,864,400 ÷ 20,666,700 = 9.02%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Sherwin-Williams Co. adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Sherwin-Williams Co. (NYSE:SHW)

Analysis of Investments