Sherwin-Williams Co. (NYSE:SHW)

Land

The value of land exhibits a slight overall decline from 283,500 thousand US dollars in 2020 to approximately 259,900 thousand US dollars in 2024. There is a marginal increase in some years, but the trend remains mostly stable with minor fluctuations around 260,000 thousand US dollars during the latter years.

Buildings

Buildings' gross value generally increased from 1,098,000 thousand US dollars in 2020 to a peak of 1,199,300 thousand US dollars in 2022. However, a significant decline occurred in 2023, dropping to 1,048,700 thousand US dollars, followed by a recovery to 1,175,900 thousand US dollars in 2024. The data suggests some variability in building asset investments or revaluations during this period.

Machinery and equipment

This category shows a consistent upward trend, rising steadily from 3,026,800 thousand US dollars in 2020 to 3,689,500 thousand US dollars in 2024. The increases year over year indicate ongoing investments or acquisitions in machinery and equipment assets.

Construction in progress

Construction in progress presents a marked upward trajectory with significant volatility. Starting at 140,500 thousand US dollars in 2020, values more than tripled to 496,100 thousand US dollars in 2022 and then doubled in 2023 to 1,111,000 thousand US dollars, escalating further to 1,598,100 thousand US dollars in 2024. This suggests accelerating capital projects or expansions under development within the company.

Property, plant and equipment, gross

Gross property, plant, and equipment increased steadily from 4,548,800 thousand US dollars in 2020 to 6,723,400 thousand US dollars in 2024. The growth reflects the cumulative additions in land, buildings, machinery, equipment, and construction in progress, with the most notable increases driven by machinery and construction projects.

Allowances for depreciation

The allowances for depreciation show a gradual increase in absolute value, from -2,714,300 thousand US dollars in 2020 to -3,190,200 thousand US dollars in 2024. This increase indicates consistent depreciation expenses reflecting asset usage and aging over time, aligned with the growing base of gross assets.

Property, plant and equipment, net

Net property, plant, and equipment experienced substantial growth, increasing from 1,834,500 thousand US dollars in 2020 to 3,533,200 thousand US dollars in 2024. The steady rise in net assets suggests successful asset base expansion exceeding depreciation charges, reflecting overall strengthening of the company's long-term operational capacity.

Average Age Ratio

The average age ratio shows a consistent decline over the five-year period, decreasing from 63.64% in 2020 to 49.36% in 2024. This trend indicates that the property, plant, and equipment are, on average, becoming relatively younger compared to their estimated total useful life, which could imply recent acquisitions or replacements of assets.

Estimated Total Useful Life

The estimated total useful life of the assets has increased steadily from 16 years in 2020 to 22 years in 2024. This upward trend suggests that the company might be investing in assets with longer lifespans or revising the expected useful lives of existing assets upward.

Estimated Age, Time Elapsed Since Purchase

The estimated age of the assets remained relatively stable, fluctuating slightly between 10 and 11 years during the period. This stability suggests that the mix of asset ages has not significantly changed, despite changes in other related metrics.

Estimated Remaining Life

The estimated remaining life of the assets has increased noticeably from 6 years in 2020 and 2021 to 11 years in 2024. This reflects an extension of the useful remaining duration of the assets, consistent with the increasing total useful life and decreasing average age ratio.

The financial data for property, plant, and equipment reveals several noteworthy trends over the five-year period from 2020 to 2024. There is a consistent increase in both the gross value of property, plant, and equipment and the related allowances for depreciation. Conversely, the average age ratio of these assets shows a declining trend, indicating a reduction in the aging of the asset base over time. The value of land held by the company demonstrates minor fluctuations without a clear upward or downward trend.

Property, Plant, and Equipment, Gross

The gross value increased steadily from $4,548.8 million in 2020 to $6,723.4 million in 2024. This represents a significant growth of approximately 48% over the five-year span. The consistent upward trajectory suggests ongoing investments and expansion in fixed assets.

Allowances for Depreciation

Allowances for depreciation rose from $2,714.3 million in 2020 to $3,190.2 million in 2024, marking an increase of about 17.5%. Although depreciation is increasing, it is outpaced by the growth in gross property, plant, and equipment, which impacts net book value positively.

Land

The carrying value of land showed minor variability, starting at $283.5 million in 2020, dipping to $257.7 million in 2021, and remaining relatively stable around $258 million through 2024. This stability contrasts with the broader growth in other asset categories and indicates limited changes in land holdings or revaluations during this period.

Average Age Ratio

The average age ratio decreased progressively from 63.64% in 2020 to 49.36% in 2024. This decline, by approximately 14 percentage points, reflects a younger asset base, potentially due to new acquisitions, replacements, or asset retirements. The reduction indicates capital investment has been directed toward modernizing or expanding the asset portfolio.

Overall, the data shows a clear pattern of asset growth accompanied by moderate increases in depreciation, while the average age ratio signals effective asset renewal. The land component remains stable, suggesting a focus on other types of property, plant, and equipment for investment.

The analysis of the property, plant, and equipment data over the five-year period reveals several notable trends and changes. The gross value of property, plant, and equipment shows a consistent upward trajectory, with an increase from approximately 4.55 billion US dollars in 2020 to about 6.72 billion US dollars in 2024. This represents a substantial growth, indicating significant investment or acquisition of fixed assets over the period.

In contrast to the overall growth in the gross value, the value of land remains relatively stable, fluctuating slightly between approximately 258 million and 284 million US dollars. This suggests that land holdings have been maintained without significant expansion or reduction.

Depreciation expense, which reflects the allocation of the cost of tangible assets over their useful lives, remains fairly steady from 2020 through 2022, averaging around 265 million US dollars annually. However, from 2022 onwards, depreciation expense increases noticeably, reaching nearly 297 million US dollars by 2024. This increase may correspond with the growth in the asset base or changes in depreciation policies or asset utilization.

The estimated total useful life of the assets shows an increasing trend over the period, rising from 16 years in 2020 to 22 years by 2024. This extension in useful life estimates could reflect improvements in asset durability, changes in accounting estimates, or shifts in the composition of the asset portfolio toward longer-lived assets.

Gross Value of Property, Plant, and Equipment

Increased steadily from 4.55 billion US dollars in 2020 to 6.72 billion US dollars in 2024, indicating ongoing capital investments or asset acquisitions.

Land

Remained relatively stable with minor fluctuations in value, suggesting a stable land asset base without major transactions.

Depreciation Expense

Relatively stable in the first three years but increased notably in the last two years, likely reflecting a larger asset base or revised depreciation estimates.

Estimated Total Useful Life

Increased from 16 to 22 years over the period, potentially indicating adjustments to asset longevity assumptions or changes in asset composition.

Overall, the data demonstrates a solid expansion in the company's fixed assets accompanied by a steady depreciation policy and an increase in the expected useful life of those assets. These trends collectively suggest strategic asset management with a focus on long-term utilization and maintaining the asset base.

The analysis of the annual property, plant, and equipment data reveals several notable trends in allowances for depreciation, depreciation expense, and time elapsed since purchase over the five-year period ending in 2024.

Allowances for Depreciation

The allowances for depreciation exhibit a consistent upward trend throughout the period. Starting at approximately 2,714,300 thousand USD in 2020, the figure increases each year, reaching 3,190,200 thousand USD by the end of 2024. This steady growth indicates ongoing accumulation of depreciation on the company's fixed assets, reflecting the aging of the asset base or addition of new assets that contribute to the overall depreciation balance.

Depreciation Expense

The depreciation expense remained relatively stable between 2020 and 2022, fluctuating narrowly from 268,000 thousand USD in 2020 to 263,100 thousand USD in 2021 and 264,000 thousand USD in 2022. However, a marked increase is observed starting in 2023 where the expense rises to 292,300 thousand USD and further to 297,400 thousand USD in 2024. This upward shift suggests accelerated depreciation or increased investment in depreciable assets, potentially indicating a strategic enhancement or replacement of property, plant, and equipment assets.

Time Elapsed Since Purchase

Throughout the period, the average age of the assets, as measured by the time elapsed since purchase, remains relatively stable, fluctuating between 10 and 11 years. There is no clear upward or downward trend in this metric, suggesting that the asset portfolio maintains a consistent lifecycle or that new asset acquisitions and disposals balance the average age over time.

Overall, the data signal an accumulation of depreciation consistent with asset aging, a notable rise in depreciation expense in recent years which may indicate increased capital expenditure or changes in asset depreciation policies, and a stable average asset age reflecting balanced asset management practices.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment has shown a consistent upward trend over the five-year period. Starting at $1,834,500 thousand in 2020, it increased marginally to $1,867,300 thousand in 2021. This was followed by a more pronounced rise to $2,207,000 thousand in 2022, continuing sharply upwards to $2,836,800 thousand in 2023, and reaching $3,533,200 thousand in 2024. This indicates substantial asset growth, likely through acquisitions or capital expenditures.

Land

The value of land remained relatively stable with minor fluctuations. Beginning at $283,500 thousand in 2020, it decreased to $257,700 thousand in 2021 and slightly increased to $263,000 thousand in 2022. Subsequently, it dipped again marginally to $257,500 thousand in 2023 and showed a small increase to $259,900 thousand in 2024. These changes are minimal, suggesting no significant land acquisitions or disposals.

Depreciation Expense

Depreciation expense experienced a slight decline from $268,000 thousand in 2020 to $263,100 thousand in 2021, followed by stability at $264,000 thousand in 2022. From 2022 onwards, depreciation expense increased noticeably to $292,300 thousand in 2023 and further to $297,400 thousand in 2024. This upward movement corresponds with the increased asset base, reflecting higher depreciation charges as the company expands its property, plant, and equipment.

Estimated Remaining Life

The estimated remaining life of property, plant, and equipment extended progressively from 6 years in 2020 and 2021 to 7 years in 2022, then to 9 years in 2023, and finally 11 years in 2024. This trend suggests that the company is acquiring or maintaining assets with longer useful lives, which may contribute to lower relative depreciation rates over time despite growing asset values.