Common-Size Income Statement
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Sherwin-Williams Co., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals several noteworthy trends over the five-year period. A consistent improvement in gross profitability is observed, alongside evolving expense management and fluctuations in non-operating items impacting net income.
- Profitability
- Gross profit as a percentage of net sales demonstrates a positive trend, increasing from 42.83% in 2021 to 48.85% in 2025. This suggests improving efficiency in production or sourcing, or potentially increased pricing power. Operating income also shows a steady increase, rising from 12.83% to 16.17% over the same period, indicating effective control of operating expenses relative to sales. Net income margin follows a similar pattern, growing from 9.35% in 2021 to 10.90% in 2025, though with some volatility.
- Cost of Goods Sold & Expenses
- Cost of goods sold decreased as a percentage of net sales, moving from -57.17% in 2021 to -51.15% in 2025, contributing to the improved gross profit margin. Selling, general and administrative expenses increased steadily as a percentage of net sales, from -29.49% to -32.64%, potentially reflecting increased investment in sales and marketing or administrative overhead. Provisions for environmental matters show variability, moving from a small positive percentage in 2021 and 2022 to a negative percentage in 2023 and 2025, suggesting fluctuating environmental-related costs or benefits.
- Non-Operating Items
- Several non-operating items exhibit fluctuations. Gains (losses) on divestiture and sale of assets are present in certain years but not others, introducing volatility. Other income demonstrates an overall increase from 0.15% to 0.13% over the period, with a peak in 2024 at 0.30%. However, other expense also fluctuates, partially offsetting these gains. Interest expense remains relatively stable as a percentage of net sales, while interest income shows modest growth. Foreign currency transaction losses are notable, particularly in 2022 and 2025, indicating potential exposure to currency fluctuations.
- Tax Rate
- The effective tax rate, expressed as a percentage of net sales, increased from -1.93% in 2021 to -3.26% in 2025. This suggests a higher proportion of income is being allocated to income taxes, potentially due to changes in tax laws or the geographic distribution of profits.
- Impairment & Other Adjustments
- Impairment charges appear in 2022, 2023, and 2025, representing a negative percentage of net sales in those years. These charges suggest a write-down of asset values, potentially due to changing market conditions or company-specific factors. The presence of these charges impacts overall profitability in the respective years.
Overall, the financial performance demonstrates a positive trend in core profitability, driven by improved gross margins and operating efficiency. However, the impact of non-operating items and fluctuating tax rates introduces some volatility. Continued monitoring of expense management and the impact of non-operating items will be crucial for sustained profitability.