Sherwin-Williams Co. (NYSE:SHW)

Current assets exhibited an initial increase followed by a period of fluctuation and subsequent growth over the five-year period. Reported current assets increased from US$5,053,700 thousand in 2021 to US$5,907,700 thousand in 2022, representing a substantial rise. However, a decrease was then observed in 2023, with current assets falling to US$5,512,900 thousand. This downward trend continued into 2024, reaching US$5,400,800 thousand, before a notable increase occurred in 2025, bringing current assets to US$6,007,400 thousand.

Adjusted Current Assets Trend

Adjusted current assets consistently exceeded reported current assets throughout the observed period. The trend in adjusted current assets mirrored that of reported current assets, though with higher values. An increase from US$5,695,600 thousand in 2021 to US$6,757,000 thousand in 2022 was followed by a decline to US$6,240,500 thousand in 2023 and US$6,091,400 thousand in 2024. A final increase was recorded in 2025, with adjusted current assets reaching US$6,686,700 thousand.

The difference between reported and adjusted current assets remained relatively consistent across the years, suggesting a systematic adjustment being applied. The magnitude of this adjustment averaged approximately US$642,000 thousand annually. The fluctuations in both reported and adjusted current assets suggest potential influences from working capital management, inventory levels, or accounts receivable collection periods. The increase in both metrics in the final year indicates a potential improvement in short-term liquidity or a strategic build-up of current assets.

Growth Rates

The largest percentage increase in reported current assets occurred between 2021 and 2022 (approximately 16.7%). The largest percentage decrease occurred between 2022 and 2023 (approximately 6.8%). Adjusted current assets exhibited similar percentage changes over the same periods.

Overall, the company’s current asset position demonstrated volatility between 2022 and 2024, followed by a recovery in 2025. The consistent application of adjustments to current assets warrants further investigation to understand the nature of these adjustments and their impact on the company’s financial position.

Total assets and adjusted total assets both demonstrate an overall upward trend from 2021 to 2025. However, the magnitude of growth differs between the two figures, and there are periods of deceleration and acceleration in the growth rates.

Overall Growth

Total assets increased from US$20,666,700 thousand in 2021 to US$25,901,700 thousand in 2025, representing a cumulative growth of approximately 25.3%. Adjusted total assets grew from US$21,245,800 thousand to US$26,486,500 thousand over the same period, a cumulative increase of roughly 24.7%.

Growth Rate Analysis

The growth rate of total assets slowed from 9.3% between 2021 and 2022 to 0.7% between 2022 and 2023. Growth then accelerated to 3.0% between 2023 and 2024, and further increased to 9.5% between 2024 and 2025. Adjusted total assets exhibited a similar pattern, with growth slowing from 10.4% to 0.6%, accelerating to 3.6%, and then increasing to 9.0% over the corresponding periods.

Difference Between Figures

A consistent difference exists between total assets and adjusted total assets throughout the period. The adjusted figure is consistently higher than the reported total assets. The difference between the two figures was approximately US$579,100 thousand in 2021, increasing to US$584,800 thousand in 2025. This suggests a systematic adjustment being applied to the reported total assets.

Year-over-Year Changes

The largest year-over-year increase in total assets occurred between 2024 and 2025 (US$2,269,100 thousand), while the smallest increase was between 2022 and 2023 (US$360,400 thousand). For adjusted total assets, the largest increase also occurred between 2024 and 2025 (US$2,230,800 thousand), and the smallest increase was between 2022 and 2023 (US$360,300 thousand).

In summary, both total assets and adjusted total assets experienced growth over the five-year period, with fluctuations in the growth rate. The consistent difference between the two figures indicates a recurring adjustment impacting the reported asset value.

Total liabilities exhibited an increasing trend over the five-year period, though not consistently. Reported total liabilities increased from US$18,229,500 thousand in 2021 to US$19,491,900 thousand in 2022, representing a growth of approximately 6.9%. A slight decrease was then observed in 2023, with total liabilities falling to US$19,238,600 thousand. This was followed by a further increase to US$19,581,400 thousand in 2024, and a more substantial rise to US$21,303,400 thousand in 2025.

Adjusted Total Liabilities Trend

Adjusted total liabilities generally mirrored the trend of reported total liabilities, though the magnitude of change differed. The adjusted figure began at US$17,426,100 thousand in 2021 and rose to US$18,732,400 thousand in 2022, a growth of approximately 7.5%. Similar to the reported figures, a decrease occurred in 2023, with adjusted total liabilities reaching US$18,515,100 thousand. Subsequent increases were noted in 2024 (US$18,927,500 thousand) and 2025 (US$20,441,100 thousand).

The difference between reported and adjusted total liabilities remained relatively consistent throughout the period. The adjustments consistently reduced the reported total liabilities, suggesting the presence of items being reclassified or restated. The absolute difference between the two figures ranged from approximately US$793,400 thousand to US$1,062,300 thousand across the observed years. The percentage difference between reported and adjusted liabilities remained relatively stable, fluctuating between approximately 4.1% and 5.5%.

Growth Rate Comparison

The growth rate of adjusted total liabilities was consistently higher than that of reported total liabilities in 2022, indicating that the adjustments had a positive impact on the reported liability position during that year. However, in subsequent years, the growth rates were more closely aligned. The largest percentage increase for both reported and adjusted liabilities occurred between 2024 and 2025.

The observed fluctuations in both reported and adjusted total liabilities warrant further investigation to understand the underlying drivers of these changes and the nature of the adjustments being made. The consistent presence of adjustments suggests potential complexities in the company’s liability structure or accounting practices.

Shareholders’ equity and an adjusted shareholders’ equity figure are presented over a five-year period. Both metrics demonstrate a consistent upward trend, however, the adjusted shareholders’ equity exhibits a significantly higher level and a more pronounced rate of growth.

Overall Trend

Both shareholders’ equity and adjusted shareholders’ equity increased annually from 2021 through 2025. Shareholders’ equity grew from US$2,437,200 thousand to US$4,598,300 thousand, representing a cumulative increase of approximately 88.3%. Adjusted shareholders’ equity experienced a more substantial increase, rising from US$3,819,700 thousand to US$6,045,400 thousand, a cumulative increase of approximately 58.5%.

Growth Rate Comparison

The growth in adjusted shareholders’ equity consistently outpaced that of reported shareholders’ equity. The difference between the two values widened each year, suggesting the adjustments being made have a growing impact on the overall equity position. In 2021, adjusted shareholders’ equity was approximately 56.8% higher than reported shareholders’ equity. By 2025, this difference had increased to approximately 31.7%.

Year-over-Year Changes

The largest year-over-year increase in shareholders’ equity occurred between 2021 and 2022, with a growth of approximately 27.1%. The largest year-over-year increase in adjusted shareholders’ equity also occurred between 2021 and 2022, with a growth of approximately 21.4%. Growth rates decelerated in subsequent years for both metrics, though remained positive.

The consistent and substantial difference between shareholders’ equity and adjusted shareholders’ equity warrants further investigation to understand the nature and impact of the adjustments being applied. The increasing magnitude of the adjustment suggests a potentially significant impact on the company’s reported financial position.

The capitalization structure of the entity under review demonstrates notable shifts between 2021 and 2025. Reported total debt increased overall during the period, though with some fluctuation. Shareholders’ equity consistently increased year-over-year. Adjustments to both debt and equity resulted in a significantly different capitalization picture than initially reported.

Total Capitalization Trend

Reported total capital increased from US$12.052 billion in 2021 to US$15.665 billion in 2025, representing a cumulative increase of approximately 29.9%. However, the growth was not linear, with a slight decrease observed between 2022 and 2023. Adjusted total capital shows a larger initial increase, reaching US$17.142 billion in 2022, before a slight dip in 2023, and then continuing to grow to US$19.183 billion in 2025. The adjusted figures consistently exceed the reported figures, indicating the impact of the adjustments.

Debt Analysis

Reported total debt rose from US$9.615 billion in 2021 to US$11.067 billion in 2025, a cumulative increase of approximately 15.1%. The largest single-year increase occurred between 2021 and 2022. Adjusted total debt followed a similar pattern, starting at US$11.495 billion in 2021 and reaching US$13.138 billion in 2025. The adjustments consistently increased the reported debt values, suggesting a reclassification or recognition of previously unrecorded liabilities.

Shareholders’ Equity Analysis

Reported shareholders’ equity experienced consistent growth, increasing from US$2.437 billion in 2021 to US$4.598 billion in 2025, representing a cumulative increase of approximately 88.3%. Adjusted shareholders’ equity demonstrates a substantially higher base, beginning at US$3.820 billion in 2021 and reaching US$6.045 billion in 2025, a cumulative increase of approximately 58.2%. The adjustments significantly increased the reported equity values, potentially reflecting the recognition of previously unrealized gains or revaluation of assets.

Capital Structure Composition

In 2021, reported debt comprised approximately 79.7% of total capital, while shareholders’ equity accounted for the remaining 20.3%. By 2025, the proportion of reported debt decreased to approximately 74.7% of total capital, with shareholders’ equity increasing to 25.3%. Analyzing the adjusted figures, debt comprised approximately 74.8% of adjusted total capital in 2021, decreasing to 68.5% in 2025, while adjusted shareholders’ equity increased from 25.2% to 31.5% over the same period. The adjustments, therefore, resulted in a lower proportion of debt and a higher proportion of equity in the overall capital structure.

The adjustments to the capitalization structure consistently increased both reported debt and shareholders’ equity, leading to a higher overall capital base. The adjustments also shifted the capital structure towards a greater proportion of equity financing. The fluctuations observed between 2022 and 2023 warrant further investigation to understand the underlying causes.

Net income and adjusted net income both demonstrate an overall positive trend from 2021 to 2025. However, the progression differs between the two metrics, particularly in the final year presented. Initial growth decelerates in 2025 for net income, while adjusted net income experiences a significant increase.

Net Income Trend

Net income increased from US$1,864,400 thousand in 2021 to US$2,020,100 thousand in 2022, representing a growth of approximately 8.3%. Further growth was observed in 2023, reaching US$2,388,800 thousand, a rise of roughly 18.2% from the prior year. The rate of increase continued into 2024, with net income reaching US$2,681,400 thousand, or approximately 12.2% growth. However, 2025 shows a decrease in net income to US$2,568,500 thousand, representing a decline of approximately 4.1% from 2024.

Adjusted Net Income Trend

Adjusted net income began at US$2,072,200 thousand in 2021 and increased to US$2,123,200 thousand in 2022, a growth of approximately 2.5%. Growth continued at a similar pace in 2023, reaching US$2,217,000 thousand, or roughly 4.4% growth. The increase continued into 2024, with adjusted net income reaching US$2,324,600 thousand, representing approximately 4.8% growth. A substantial increase is observed in 2025, with adjusted net income reaching US$3,001,800 thousand, a significant rise of approximately 29.1% from 2024.

Relationship Between Net and Adjusted Income

In 2021 and 2022, the difference between adjusted and reported net income was approximately US$207,800 thousand and US$103,100 thousand, respectively. This difference narrowed in 2023 to US$81,800 thousand and remained relatively stable at US$93,000 thousand in 2024. However, in 2025, the difference expanded considerably to US$433,300 thousand. This suggests that adjustments made to net income had a progressively larger impact on the final reported figure in 2025, and warrants further investigation into the nature of these adjustments.