Stock Analysis on Net
Stock Analysis on Net
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Sherwin-Williams Co. (NYSE:SHW)

Cash Flow Statement

Beginner level

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Sherwin-Williams Co., consolidated cash flow statement

US$ in thousands

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income 2,030,400  1,541,300  1,108,746  1,772,262  1,132,703 
Loss from discontinued operations —  —  —  41,540  — 
Depreciation 268,000  262,100  278,169  284,997  172,074 
Non-cash lease expense 381,300  370,800  —  —  — 
Amortization of intangible assets 313,400  312,800  318,112  206,764  25,637 
Amortization of inventory purchase accounting adjustments —  —  —  54,924  — 
Loss on extinguishment of debt 21,300  14,800  —  —  — 
Impairment of trademarks 2,300  122,100  —  2,022  10,688 
Amortization of credit facility and debt issuance costs 7,200  9,200  12,133  8,313  63,759 
Provisions for environmental-related matters 37,100  23,000  176,297  15,443  42,932 
Deferred income taxes (145,300) (131,100) (143,378) (606,135) (68,241)
Defined benefit pension plans net cost 7,600  43,100  36,371  18,153  14,851 
Stock-based compensation expense 95,900  101,700  82,588  90,292  72,109 
Decrease in non-traded investments 84,800  82,300  72,453  65,703  64,689 
(Gain) loss on sale or disposition of assets (9,400) 16,100  12,825  5,422  (30,564)
Other (6,900) 10,200  (14,779) 33,689  (4,234)
(Increase) decrease in accounts receivable 10,300  (73,200) 18,424  (49,850) (113,855)
(Increase) decrease in inventories 84,400  (75,500) (119,510) (89,959) (52,577)
Increase (decrease) in accounts payable 227,200  36,200  113,786  166,687  (118,893)
Increase (decrease) in accrued taxes 99,200  5,100  2,717  (20,878) (2,159)
Increase (decrease) in accrued compensation and taxes withheld 197,700  49,600  4,640  11,286  60,632 
(Increase) decrease in refundable income taxes 40,600  (47,800) 20,092  (15,520) (1,343)
Increase (decrease) in California litigation accrual (12,000) (59,600) 136,333  —  — 
Other (50,000) 18,800  (46,773) 16,270  56,215 
Change in working capital accounts 597,400  (146,400) 129,709  18,036  (171,980)
Change in operating lease liabilities (371,400) (368,400) —  —  — 
Costs incurred for environmental-related matters (39,000) (26,100) (17,718) (13,792) (15,178)
Adjustments to reconcile net income to net operating cash 1,244,300  696,200  942,782  225,371  176,542 
Other 133,900  83,800  (107,828) (113,665) (673)
Net operating cash 3,408,600  2,321,300  1,943,700  1,883,968  1,308,572 
Capital expenditures (303,800) (328,900) (250,957) (222,767) (239,026)
Acquisitions of businesses, net of cash acquired —  (77,300) —  (8,810,315) — 
Proceeds from sale of assets 60,700  6,900  38,354  47,246  38,434 
Increase in other investments (79,300) (63,300) (39,037) (61,526) (103,182)
Net investing cash (322,400) (462,600) (251,640) (9,047,362) (303,774)
Net increase (decrease) in short-term borrowings (204,600) (122,800) (300,942) 356,320  (899)
Proceeds from long-term debt 999,000  1,332,800  —  8,275,169  500 
Payments of long-term debt (1,204,700) (1,875,800) (852,627) (1,852,812) (1,111)
Payments for credit facility and debt issuance costs (10,000) (13,600) (5,185) (49,376) (65,119)
Payments of cash dividends (488,000) (420,800) (322,934) (319,029) (312,082)
Proceeds from stock options exercised 182,700  154,600  90,745  143,579  86,831 
Treasury stock purchased (2,446,300) (778,800) (613,312) —  — 
Proceeds from treasury stock issued 182,400  —  —  —  — 
Proceeds from real estate financing transactions —  7,200  225,345  —  — 
Other (30,600) (129,200) 32,257  (39,761) (15,473)
Net financing cash (3,020,100) (1,846,400) (1,746,653) 6,514,090  (307,353)
Effect of exchange rate changes on cash (1,300) (6,000) 5,885  (36,276) (13,396)
Net increase (decrease) in cash and cash equivalents 64,800  6,300  (48,708) (685,580) 684,049 
Cash and cash equivalents at beginning of year 161,800  155,500  204,213  889,793  205,744 
Cash and cash equivalents at end of year 226,600  161,800  155,505  204,213  889,793 

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22).

Cash flow statement item Description The company
Net operating cash Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Sherwin-Williams Co.’s net operating cash increased from 2018 to 2019 and from 2019 to 2020.
Net investing cash Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Sherwin-Williams Co.’s net investing cash decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.
Net financing cash Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Sherwin-Williams Co.’s net financing cash decreased from 2018 to 2019 and from 2019 to 2020.