Sherwin-Williams Co. (NYSE:SHW)

The data presents annual financial figures for current assets and adjusted current assets over a five-year period.

Current assets

There is a general upward trend in current assets from 2020 to 2022, increasing from approximately 4.59 billion to nearly 5.91 billion US dollars. However, this trend reverses in 2023 and 2024, with a decline to about 5.51 billion and 5.40 billion, respectively. This indicates a peak in current assets during 2022, followed by a moderate decrease over the subsequent two years.

Adjusted current assets

Adjusted current assets show a similar pattern but at consistently higher values compared to current assets. Starting at approximately 4.96 billion in 2020, adjusted current assets increase steadily each year to reach around 6.76 billion in 2022. Thereafter, a decline is observed in 2023 and 2024, falling to approximately 6.24 billion and then 6.09 billion. Despite the decrease in the last two years, adjusted current assets remain substantially above their 2020 level.

Comparison and insights

Both current and adjusted current assets experienced growth during the first three years, suggesting expansion or accumulation of liquid or easily convertible assets. The decrease observed from 2023 onward could imply a strategic reduction, asset reallocation, or changes in working capital management. The adjusted figures consistently being higher than reported current assets suggests the inclusion of additional components or adjustments that provide a broader perspective on asset liquidity.

Total Assets

The total assets of the company showed a consistent upward trend over the five-year period. Starting at approximately 20.4 billion US dollars at the end of 2020, total assets increased modestly in 2021, reaching around 20.7 billion US dollars. The growth accelerated in 2022 with total assets rising to approximately 22.6 billion US dollars. This positive trajectory continued through 2023 and 2024, where total assets reached about 22.95 billion and 23.63 billion US dollars, respectively. Overall, the company expanded its asset base by approximately 3.2 billion US dollars over the period, indicating potential business growth or investment activity.

Adjusted Total Assets

The adjusted total assets also exhibited a steady increase from 2020 to 2024, mirroring the trend observed in total assets but consistently recorded at slightly higher values. Starting from roughly 20.7 billion US dollars in 2020, adjusted total assets rose to 21.2 billion in 2021 and further to 23.4 billion in 2022. The upward momentum persisted through 2023 and 2024, with adjusted total assets reaching approximately 23.6 billion and 24.3 billion US dollars, respectively. This adjusted measurement suggests a similar pattern of growth as total assets, emphasizing the expansion of asset values when adjustments are applied, possibly reflecting revaluation or different accounting treatments.

Total Liabilities

The total liabilities exhibit a generally increasing trend over the five-year period. Starting at approximately 16.79 billion in 2020, liabilities rose steadily to about 18.23 billion in 2021, continuing to grow to nearly 19.49 billion in 2022. There was a slight decline in 2023 to 19.24 billion, followed by a marginal increase again in 2024 to around 19.58 billion. Despite the small fluctuation in the last two years, the overall trajectory suggests a growing liability base.

Adjusted Total Liabilities

The adjusted total liabilities follow a similar pattern to total liabilities, starting at 15.90 billion in 2020 and increasing consistently to 17.43 billion in 2021, then to 18.73 billion in 2022. A slight decrease is seen in 2023 with 18.52 billion, before rising marginally to 18.93 billion in 2024. The adjusted figures remain somewhat lower than the unadjusted total liabilities but mirror the same growth and minor fluctuation trend, indicating that after accounting for adjustments, liabilities have still experienced a steady, albeit modest, increase over the period.

General Analysis

Overall, the data reveals a trend of increasing liabilities, both total and adjusted, reflecting possibly greater borrowing or obligations incurred over the years. The slight dips observed in 2023 for both metrics suggest a temporary reduction or reprioritization of liabilities during that period. The subsequent rebound in 2024 implies the adjustment was short-lived or that new liabilities were assumed. This pattern indicates a need to monitor liabilities closely to assess the company's leverage and financial risk going forward.

The financial data for the company reveals notable fluctuations and growth patterns in the shareholders' equity and adjusted shareholders' equity over the five-year period.

Shareholders’ Equity

The shareholders’ equity experienced a decline from 3,610,800 thousand US dollars in 2020 to 2,437,200 thousand US dollars in 2021, marking a significant decrease of approximately 32.5%. However, from 2021 onwards, there was a consistent upward trend, increasing to 3,102,100 thousand US dollars in 2022, then to 3,715,800 thousand US dollars in 2023, and reaching 4,051,200 thousand US dollars in 2024. This indicates a recovery and steady growth after the initial drop, with a total increase of around 66.3% from the lowest point in 2021 to 2024.

Adjusted Shareholders’ Equity

The adjusted shareholders’ equity similarly shows a decline from 4,798,200 thousand US dollars in 2020 to 3,819,700 thousand US dollars in 2021, a reduction of nearly 20.4%. Subsequently, there was a continuous increase each year: rising to 4,633,900 thousand US dollars in 2022, 5,089,900 thousand US dollars in 2023, and 5,328,200 thousand US dollars in 2024. This reflects a steady upward trajectory with an overall increase of approximately 39.5% from the 2021 low to 2024.

Overall, the data indicates that while there was a sharp contraction in equity values between 2020 and 2021, the company demonstrated resilience and recovery with consistent growth in both shareholders’ equity and adjusted shareholders’ equity over the subsequent years, surpassing the initial 2020 values by 2024. The adjusted shareholders’ equity remains consistently higher than the reported shareholders’ equity, suggesting the presence of revaluation or other adjustments that contribute to a stronger financial position under that measure.

Total Reported Debt

The total reported debt exhibits a general upward trend over the observed period. Starting at approximately 8.3 billion USD in 2020, it increases steadily to a peak of nearly 10.57 billion USD in 2022. Following this peak, there is a slight decline in 2023 to around 9.85 billion USD, with a modest increase again to approximately 10.08 billion USD by the end of 2024. This indicates a pattern of incremental borrowing with some reduction and stabilization in recent years.

Shareholders’ Equity

Shareholders’ equity shows more variability across the years. It declines sharply from about 3.61 billion USD in 2020 to around 2.44 billion USD in 2021. Subsequently, it recovers significantly, reaching roughly 3.10 billion USD in 2022 and continuing to grow steadily to approximately 4.05 billion USD by the end of 2024. This recovery and growth suggest improvements in retained earnings or capital infusions following a period of decreased equity.

Total Reported Capital

Total reported capital, the sum of reported debt and shareholders' equity, follows a generally ascending trajectory. It starts at about 11.9 billion USD in 2020, sees a moderate increase through 2021, a larger rise to approximately 13.67 billion USD in 2022, and then remains relatively stable around 13.57 billion USD in 2023, before increasing slightly to 14.13 billion USD in 2024. This reflects that overall capital resources have grown, albeit with some periods of stabilization.

Adjusted Total Debt

Adjusted total debt is consistently higher than the total reported debt, indicating additional liabilities considered in the adjusted figure. The level increases from about 10.11 billion USD in 2020 to a peak of 12.51 billion USD in 2022, similar to the reported debt trend, then decreases slightly to around 11.81 billion USD in 2023 before rising again to approximately 12.10 billion USD in 2024. This pattern mirrors the reported debt trend but on a higher scale, suggesting a comprehensive inclusion of debt elements.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity also follows a similar but smoother pattern to the reported shareholders’ equity. It declines from about 4.80 billion USD in 2020 to roughly 3.82 billion USD in 2021 and then increases steadily to approximately 5.33 billion USD by the end of 2024. This indicates that adjusted equity accounts for broader equity components and reflects a recovery and growth trend after an initial decline.

Adjusted Total Capital

Adjusted total capital consistently exceeds reported total capital, beginning at approximately 14.91 billion USD in 2020 and rising steadily to around 17.14 billion USD in 2022. A slight dip is evident in 2023 down to about 16.90 billion USD, followed by an increase again to roughly 17.43 billion USD in 2024. This overall upward movement indicates an expansion in the company’s capital base when adjusted for additional factors, with minor fluctuations in the later years.

Net Income

The net income demonstrates a varied trend over the five-year period. Starting at approximately 2,030,400 thousand US dollars in 2020, it experienced a decline in 2021 to around 1,864,400 thousand US dollars. Subsequently, it rebounded in 2022, reaching close to 2,020,100 thousand US dollars. A significant increase is observed in 2023, with net income rising to approximately 2,388,800 thousand US dollars, and this upward trajectory continues into 2024, reaching around 2,681,400 thousand US dollars. Overall, the net income shows growth, with fluctuations in the initial years, followed by notable increases in the later years.

Adjusted Net Income

The adjusted net income displays a generally increasing trend throughout the period. In 2020, it starts at about 1,836,600 thousand US dollars and then rises to 2,072,200 thousand US dollars in 2021. This growth continues at a slower pace through 2022, with adjusted net income near 2,123,200 thousand US dollars. The upward movement persists, reaching approximately 2,217,000 thousand US dollars in 2023 and further increasing to about 2,324,600 thousand US dollars in 2024. This suggests consistent improvements after adjustments, possibly indicating stability or the mitigation of non-recurring items affecting net income.

Comparative Insights

Comparing net income and adjusted net income, the adjusted figures consistently fall below the reported net income from 2020 through 2024. While net income fluctuates more prominently, adjusted net income shows steadier growth. The difference between these metrics narrows over time, particularly in 2023 and 2024, pointing toward a possible reduction in extraordinary or non-operating impacts on the company's profitability. The overall upward trend in both metrics in the last two years suggests improving profitability and operational performance.