Sherwin-Williams Co. (NYSE:SHW)

The analysis of the financial data over the period from 2005 to 2024 reveals notable trends in both net sales and net income.

Net Sales

Net sales demonstrated a generally upward trajectory throughout the time frame. Starting at approximately 7.19 billion US dollars in 2005, sales experienced fluctuations but mostly consistent growth. A slight decline occurred in 2009, dropping to about 7.09 billion, likely reflecting economic challenges during that period. However, from 2010 onward, net sales recovered and expanded steadily, reaching around 23.10 billion by 2023 and maintaining that level into 2024. The most significant growth phases were observed from 2016 to 2017, followed by a sharp increase continuing into the subsequent years, indicating strong market demand or successful expansion strategies during these periods.

Net Income

Net income showed more volatility compared to net sales, with significant fluctuations over the examined years. Beginning at approximately 463 million US dollars in 2005, net income rose to over 615 million by 2007, then declined over the next two years, falling to roughly 436 million in 2009. From 2010 onwards, net income displayed an overall increasing trend, with some irregularities. Exceptional spikes are notable in 2012 and 2017, where net income reached over 631 million and surged to around 1.77 billion, respectively. After a dip in 2018, net income rebounded and generally increased, hitting a peak near 2.68 billion in 2024. This pattern suggests periods of improved profitability possibly due to operational efficiencies, cost management, or favorable market conditions.

Relationship and Insights

The data indicates that while net sales grew steadily, net income experienced more variation, which might suggest shifting margins or changing expense structures. The substantial net income spike in 2017 compared to the sales growth in the same year could imply extraordinary events or one-time gains. The steady rise in net sales combined with increasing net income over the long term suggests strengthening financial performance and successful business growth strategies.

The analysis of the financial data reveals notable trends in both current assets and total assets over the examined period.

Current Assets

The current assets show a generally increasing trend from 2005 through 2024, with some fluctuations. Starting with approximately 1.89 billion US dollars in 2005, current assets rose significantly to about 2.45 billion in 2006, followed by a decline in 2007 and 2008. This dip continued through 2009 with a low point around 1.77 billion. Afterward, current assets demonstrated a recovery and steady growth, reaching around 3.15 billion by 2013. There was a temporary decline in 2014 but followed by a consistent rise from 2015 onward, peaking near 5.91 billion in 2022. Slight decreases occurred in 2023 and 2024 but values remained above 5.4 billion, indicating a robust liquidity position overall with strong asset management in recent years.

Total Assets

Total assets exhibit an overall growth trajectory from 2005 to 2024, with some variability. Commencing at approximately 4.37 billion US dollars in 2005, total assets increased to nearly 5 billion in 2006 but saw a slight decline through 2008 and 2009, settling around 4.32 billion in 2009. From 2010, total assets steadily expanded, surpassing 6.3 billion in 2013. A pronounced increase occurs in 2017 when total assets nearly triple to roughly 19.96 billion US dollars, a significant leap sustained through 2019 and early 2020s. This spike suggests major asset acquisition or revaluation during this period. Growth tapered but continued with assets reaching approximately 23.63 billion by 2024, underscoring an expansion of the company’s asset base with strategic investments or acquisitions in the later years.

Overall, the data indicates a company that effectively increased its asset base over the long term, managing to grow current assets in alignment with total asset expansion. The significant surge in total assets around 2017 marks a key inflection point in the company’s scale of operations or asset structure, while the steady increase in current assets supports enhanced liquidity and operational capacity. Despite minor declines in some years, the general financial position appears strong through the latest reported periods.

The analysis of the financial data reveals several notable trends in the key balance sheet components over the period examined.

Current Liabilities

Current liabilities exhibit an overall increasing trend from 1,554,371 thousand US dollars in 2005 to 6,808,700 thousand US dollars in 2024. There are some fluctuations visible throughout the timeline; for example, a decline is notable between 2007 and 2009, followed by a steady increase afterward, especially from 2012 onward. The rise accelerates significantly after 2013, indicating potential expansion or increased short-term obligations in recent years.

Total Debt

Total debt shows considerable volatility but a generally upward trajectory. Starting at 621,170 thousand US dollars in 2005, total debt peaks at over 10.5 million thousand US dollars in 2017, before slightly declining and then stabilizing around the 9.8 to 10 million thousand US dollars range through 2023 and 2024. Notably, there is a pronounced jump between 2011 and 2013, nearly a tenfold increase, suggesting major financing or borrowing activities during this period.

Shareholders’ Equity

Shareholders’ equity exhibits less consistency compared to liabilities and debt. The value peaks early in 2006 at nearly 2 billion US dollars, then declines steadily and reaches its lowest points in 2013 and 2014, around 867,910 to 996,470 thousand US dollars, potentially reflecting losses or dividends paid exceeding profits. A recovery trend emerges thereafter, with equity rising sharply post-2015 to peak again around 4.1 million thousand US dollars by 2024, indicating restoration in retained earnings or capital injections.

In summary, the company shows a pattern of increasing leverage, marked by substantial growth in both current liabilities and total debt, particularly after 2012. While shareholders’ equity has experienced volatility, its recovery since the mid-2010s suggests improving financial stability. The trends imply significant financial restructuring or strategic initiatives influencing the company's capital structure over these years.

Net Operating Cash

The net operating cash demonstrates an overall upward trend from 2005 to 2024, with some fluctuations in between. Starting at approximately 717 million USD in 2005, it experiences steady growth with minor declines in certain years such as 2010 and post-2020. Significant increases are observed in 2015 and 2017, reaching a peak around 3.4 billion USD in 2020 before declining somewhat in the subsequent years. Despite the dips, the general pattern indicates strengthening operational cash generation over the two decades.

Net Investing Cash

Net investing cash outflows are consistently negative throughout the period, indicating continuous investment activity. The outflows show considerable variation, with relatively moderate negative values in the early years and a pronounced spike in outflows in 2017, where the cash used for investing surged dramatically to over 9 billion USD. Following this peak, investing outflows revert to less extreme but still substantial levels, remaining in the range of several hundred million to over a billion USD. This pattern suggests an episodic but significant increase in investment expenditure, possibly related to acquisitions or capital projects in 2017.

Net Financing Cash

Net financing cash exhibits more volatility compared to operating and investing cash flows. The cash flows from financing activities oscillate between positive and negative values. Early years show predominant cash outflows related to financing, with brief episodes of positive inflows such as in 2012 and notably in 2017, when financing activities generated substantial cash inflows exceeding 6.5 billion USD. After 2017, financing cash flows revert primarily to outflows, generally in the hundreds of millions or low billions. This variability indicates shifts in the company's debt or equity financing strategies, with significant capital raising occurring particularly in 2017, followed by repayment or buyback activities in later years.

The analysis of the financial data reveals several notable trends in earnings per share (EPS) and dividends over the period from 2005 to 2024.

Basic Earnings Per Share (EPS)

The basic EPS showed an overall upward trend with some fluctuations. Starting at 1.13 US$ in 2005, it generally increased, reaching a peak of 6.36 US$ in 2017, followed by a notable dip to 3.97 US$ in 2018. After this decline, EPS rebounded strongly and maintained a growth trajectory, reaching 10.68 US$ in 2024. This indicates improved profitability over the long term despite intermittent volatility.

Diluted Earnings Per Share (EPS)

The diluted EPS mirrored the basic EPS pattern closely throughout the period. Beginning at 1.09 US$ in 2005, it climbed steadily to a peak of 6.22 US$ in 2017, dropped to 3.89 US$ in 2018, and then recovered, ultimately reaching 10.55 US$ by 2024. This alignment suggests consistent share dilution effects over time and similar profitability trends as the basic EPS.

Dividend Per Share

The dividend per share exhibited a consistent upward trend across the two decades. Starting from 0.27 US$ in 2005, the dividends generally increased annually with minor plateaus, reaching 2.86 US$ by 2024. The steady growth in dividends reflects a sustained policy of returning value to shareholders and aligns positively with the rising earnings.

In summary, the data illustrates a strong overall growth in profitability as indicated by both basic and diluted EPS. Despite a temporary earnings decline around 2018, the company recovered robustly, achieving new highs by 2024. Meanwhile, the continuous increase in dividends per share over the years demonstrates a commitment to shareholder returns alongside earnings growth. This combination of rising earnings and dividends suggests strong financial health and effective capital management throughout the analyzed period.