Stock Analysis on Net
Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

Common-Size Income Statement 
Quarterly Data

Sherwin-Williams Co., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -51.53 -50.84 -50.62 -51.77 -51.42 -50.87 -51.15 -52.84 -51.47 -52.32 -53.97 -55.52 -57.29 -57.18 -58.30 -58.93 -60.53 -58.43 -55.18 -54.64
Gross profit 48.47% 49.16% 49.38% 48.23% 48.58% 49.13% 48.85% 47.16% 48.53% 47.68% 46.03% 44.48% 42.71% 42.82% 41.70% 41.07% 39.47% 41.57% 44.82% 45.36%
Selling, general and administrative expenses -34.61 -30.71 -31.86 -33.81 -35.55 -30.73 -29.43 -33.53 -35.34 -28.72 -28.20 -31.11 -31.33 -26.62 -27.21 -29.72 -31.84 -28.08 -28.17 -30.18
Other general income (expense), net 0.37 0.07 -0.10 -0.17 0.15 -0.01 0.54 -0.04 -0.52 -1.01 0.52 -0.19 0.33 0.24 -0.07 -0.05 0.20 0.02 0.10 -2.52
Impairment -0.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.46 0.00 -0.54 0.00 -0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating income 13.92% 18.52% 17.43% 14.26% 13.18% 18.39% 19.95% 13.59% 12.22% 17.95% 17.80% 13.18% 11.42% 16.44% 14.42% 11.30% 7.83% 13.52% 16.75% 12.66%
Interest expense -2.35 -1.84 -1.78 -1.96 -1.86 -1.68 -1.77 -1.92 -1.80 -1.67 -1.79 -2.01 -2.07 -1.67 -1.58 -1.77 -1.78 -1.61 -1.55 -1.79
Interest income 0.05 0.04 0.04 0.06 0.03 0.04 0.01 0.11 0.18 0.08 0.12 0.06 0.06 0.04 0.02 0.02 0.06 0.01 0.01 0.01
Other income (expense), net -0.20 -0.04 -0.07 -0.05 0.27 -0.15 0.51 0.14 -1.57 0.13 0.09 0.06 0.06 -0.30 -0.26 -0.33 0.38 -0.03 0.02 0.05
Income before income taxes 11.42% 16.68% 15.61% 12.31% 11.62% 16.60% 18.71% 11.92% 9.02% 16.50% 16.22% 11.30% 9.46% 14.51% 12.60% 9.22% 6.49% 11.88% 15.23% 10.93%
Income taxes -2.90 -3.58 -3.66 -2.81 -2.56 -3.51 -4.52 -2.51 -2.24 -4.05 -3.50 -2.52 -2.08 -3.18 -2.76 -1.81 -0.10 -2.12 -3.17 -2.13
Net income 8.52% 13.10% 11.95% 9.50% 9.06% 13.08% 14.19% 9.41% 6.78% 12.45% 12.72% 8.77% 7.39% 11.33% 9.84% 7.42% 6.38% 9.76% 12.06% 8.80%

Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The common-size income statement reveals several noteworthy trends in the company’s financial performance between March 2021 and December 2025. A general pattern of increasing gross profitability is observed, punctuated by periods of fluctuating operating and net income margins. Cost of goods sold as a percentage of net sales generally decreased over the period, while selling, general, and administrative expenses exhibited more volatility.

Gross Profit Margin
The gross profit margin demonstrated an upward trend overall, increasing from 45.36% in March 2021 to 49.38% in June 2025. However, there were quarterly fluctuations. The lowest margin occurred in December 2021 at 39.47%, while the highest was observed in June 2023 at 47.68% and again in September 2024 at 49.13%. This suggests improving efficiency in production or procurement, though seasonal or external factors may contribute to the quarterly variations.
Operating Income Margin
The operating income margin displayed significant volatility. It peaked at 16.75% in June 2021, then declined sharply to 7.83% by December 2021. A recovery was seen through September 2022, reaching 16.44%, followed by another decline to 11.42% in December 2022. The margin experienced a resurgence in 2024, peaking at 19.95% in March 2024, before settling at 13.92% in December 2025. This fluctuation indicates sensitivity to changes in operating expenses and potentially, sales volume.
Selling, General and Administrative Expenses
Selling, general, and administrative expenses as a percentage of net sales were relatively high and variable. They began at 30.18% in March 2021, decreased to 26.62% in September 2022, and then increased substantially to 35.34% in December 2023. The expense ratio decreased again in subsequent quarters, ending at 34.61% in December 2025. This suggests potential fluctuations in marketing spend, administrative costs, or other related expenses.
Net Income Margin
The net income margin mirrored the trends observed in operating income, though to a lesser extent. It started at 8.80% in March 2021, rose to a high of 12.72% in March 2023, and then decreased to 8.52% in December 2025. The presence of impairment charges in December 2022 and December 2025 negatively impacted the net income margin during those periods.
Interest Expense
Interest expense remained relatively stable as a percentage of net sales, generally fluctuating between 1.55% and 2.35%. A slight upward trend is observable towards the end of the period, increasing from 1.86% in September 2024 to 2.35% in December 2025, potentially indicating increased borrowing or higher interest rates.
Other Income/Expense
The impact of other income and expense on net sales was generally small, with fluctuations between positive and negative values. A significant negative impact was observed in December 2023 (-1.57%), likely due to a specific, non-recurring expense. The overall trend is relatively flat, with minor variations throughout the period.

In summary, the company demonstrated improving gross profitability, but its operating and net income margins were subject to considerable volatility. Fluctuations in selling, general, and administrative expenses, coupled with occasional impairment charges, appear to be key drivers of these variations. The increasing interest expense towards the end of the period warrants further investigation.