Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Sherwin-Williams Co., ROE, long-term trends, calculation

Microsoft Excel

Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in thousands


Net Income
The net income demonstrates a general upward trajectory over the period analyzed, increasing from approximately 463 million US dollars in 2005 to around 2.68 billion US dollars in 2024. There are fluctuations evident in some years, particularly a decline during the 2008–2009 period coinciding with broader economic downturns, followed by growth resuming thereafter. Notably, strong increases occurred from 2013 to 2017 and from 2019 onward, with minor variability in the early 2020s suggesting resilience despite external challenges.
Shareholders’ Equity
Shareholders’ equity showed variability throughout the years, starting at around 1.73 billion US dollars in 2005 and exhibiting some decline in the late 2000s, reaching a low near 867 million in 2014. After this period, equity rose substantially, peaking at 4.12 billion in 2019, followed by some reductions and recoveries through to 2024, ending slightly lower at about 4.05 billion US dollars. This pattern reflects fluctuations likely tied to business reinvestment, asset valuations, or capital structure adjustments.
Return on Equity (ROE)
The ROE exhibited strong performance with values mostly exceeding 25%, indicating effective profitability relative to shareholder investment. The metric peaked dramatically in 2014 at over 121%, which corresponds with the equity trough in the same year, suggesting unusually high returns on a diminished equity base. Subsequent years saw ROE stabilize at a lower yet robust range, typically between 29% and 76%, with some volatility but maintaining a position well above typical industry averages, reflecting efficient management of equity to generate income.
Summary of Trends and Insights
Overall, the data reflects a company with robust income growth and high profitability relative to equity, despite some fluctuations in equity values. The significant surge in ROE around 2014 coincides with a dip in equity, which may indicate balance sheet restructuring or asset revaluation. The consistent growth in net income alongside relatively strong ROE suggests operational effectiveness and the ability to translate revenues into profits efficiently. Variability in equity may highlight strategic financial decisions impacting capital structure. The company demonstrates resilience through economic cycles, especially evident in the recovery following the 2008–2009 period and continued profitability into the mid-2020s.

Comparison to Competitors


Comparison to Sector (Chemicals)


Comparison to Industry (Materials)