Stock Analysis on Net
Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Sherwin-Williams Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2025 64.89% = 10.88% × 5.97
Dec 31, 2024 66.19% = 11.35% × 5.83
Sep 30, 2024 61.54% = 10.67% × 5.77
Jun 30, 2024 66.98% = 10.59% × 6.33
Mar 31, 2024 68.97% = 10.31% × 6.69
Dec 31, 2023 64.29% = 10.41% × 6.18
Sep 30, 2023 63.99% = 10.51% × 6.09
Jun 30, 2023 64.51% = 10.11% × 6.38
Mar 31, 2023 67.16% = 9.19% × 7.30
Dec 31, 2022 65.12% = 8.94% × 7.28
Sep 30, 2022 74.59% = 8.71% × 8.56
Jun 30, 2022 78.89% = 7.96% × 9.91
Mar 31, 2022 81.71% = 8.40% × 9.73
Dec 31, 2021 76.50% = 9.02% × 8.48
Sep 30, 2021 73.13% = 9.49% × 7.71
Jun 30, 2021 76.43% = 10.58% × 7.22
Mar 31, 2021 68.81% = 10.37% × 6.64
Dec 31, 2020 56.23% = 9.95% × 5.65
Sep 30, 2020 — = — × 4.95
Jun 30, 2020 — = — × 5.30
Mar 31, 2020 — = — × 6.25

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2025 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Sherwin-Williams Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2025 64.89% = 11.63% × 0.94 × 5.97
Dec 31, 2024 66.19% = 11.61% × 0.98 × 5.83
Sep 30, 2024 61.54% = 11.09% × 0.96 × 5.77
Jun 30, 2024 66.98% = 10.92% × 0.97 × 6.33
Mar 31, 2024 68.97% = 10.52% × 0.98 × 6.69
Dec 31, 2023 64.29% = 10.36% × 1.00 × 6.18
Sep 30, 2023 63.99% = 10.50% × 1.00 × 6.09
Jun 30, 2023 64.51% = 10.20% × 0.99 × 6.38
Mar 31, 2023 67.16% = 9.41% × 0.98 × 7.30
Dec 31, 2022 65.12% = 9.12% × 0.98 × 7.28
Sep 30, 2022 74.59% = 8.94% × 0.97 × 8.56
Jun 30, 2022 78.89% = 8.45% × 0.94 × 9.91
Mar 31, 2022 81.71% = 9.00% × 0.93 × 9.73
Dec 31, 2021 76.50% = 9.35% × 0.97 × 8.48
Sep 30, 2021 73.13% = 10.00% × 0.95 × 7.71
Jun 30, 2021 76.43% = 11.05% × 0.96 × 7.22
Mar 31, 2021 68.81% = 11.23% × 0.92 × 6.64
Dec 31, 2020 56.23% = 11.06% × 0.90 × 5.65
Sep 30, 2020 — = — × — × 4.95
Jun 30, 2020 — = — × — × 5.30
Mar 31, 2020 — = — × — × 6.25

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2025 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Sherwin-Williams Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2025 64.89% = 0.77 × 0.89 × 16.85% × 0.94 × 5.97
Dec 31, 2024 66.19% = 0.78 × 0.89 × 16.74% × 0.98 × 5.83
Sep 30, 2024 61.54% = 0.77 × 0.89 × 16.15% × 0.96 × 5.77
Jun 30, 2024 66.98% = 0.76 × 0.89 × 16.11% × 0.97 × 6.33
Mar 31, 2024 68.97% = 0.77 × 0.88 × 15.43% × 0.98 × 6.69
Dec 31, 2023 64.29% = 0.77 × 0.88 × 15.30% × 1.00 × 6.18
Sep 30, 2023 63.99% = 0.77 × 0.88 × 15.47% × 1.00 × 6.09
Jun 30, 2023 64.51% = 0.78 × 0.87 × 14.94% × 0.99 × 6.38
Mar 31, 2023 67.16% = 0.78 × 0.87 × 13.89% × 0.98 × 7.30
Dec 31, 2022 65.12% = 0.79 × 0.87 × 13.38% × 0.98 × 7.28
Sep 30, 2022 74.59% = 0.81 × 0.87 × 12.70% × 0.97 × 8.56
Jun 30, 2022 78.89% = 0.83 × 0.86 × 11.89% × 0.94 × 9.91
Mar 31, 2022 81.71% = 0.83 × 0.87 × 12.52% × 0.93 × 9.73
Dec 31, 2021 76.50% = 0.83 × 0.87 × 12.95% × 0.97 × 8.48
Sep 30, 2021 73.13% = 0.81 × 0.88 × 14.11% × 0.95 × 7.71
Jun 30, 2021 76.43% = 0.80 × 0.89 × 15.48% × 0.96 × 7.22
Mar 31, 2021 68.81% = 0.80 × 0.89 × 15.76% × 0.92 × 6.64
Dec 31, 2020 56.23% = 0.81 × 0.88 × 15.57% × 0.90 × 5.65
Sep 30, 2020 — = — × — × — × — × 4.95
Jun 30, 2020 — = — × — × — × — × 5.30
Mar 31, 2020 — = — × — × — × — × 6.25

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2025 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Sherwin-Williams Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2025 10.88% = 11.63% × 0.94
Dec 31, 2024 11.35% = 11.61% × 0.98
Sep 30, 2024 10.67% = 11.09% × 0.96
Jun 30, 2024 10.59% = 10.92% × 0.97
Mar 31, 2024 10.31% = 10.52% × 0.98
Dec 31, 2023 10.41% = 10.36% × 1.00
Sep 30, 2023 10.51% = 10.50% × 1.00
Jun 30, 2023 10.11% = 10.20% × 0.99
Mar 31, 2023 9.19% = 9.41% × 0.98
Dec 31, 2022 8.94% = 9.12% × 0.98
Sep 30, 2022 8.71% = 8.94% × 0.97
Jun 30, 2022 7.96% = 8.45% × 0.94
Mar 31, 2022 8.40% = 9.00% × 0.93
Dec 31, 2021 9.02% = 9.35% × 0.97
Sep 30, 2021 9.49% = 10.00% × 0.95
Jun 30, 2021 10.58% = 11.05% × 0.96
Mar 31, 2021 10.37% = 11.23% × 0.92
Dec 31, 2020 9.95% = 11.06% × 0.90
Sep 30, 2020 — = — × —
Jun 30, 2020 — = — × —
Mar 31, 2020 — = — × —

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2025 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Sherwin-Williams Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2025 10.88% = 0.77 × 0.89 × 16.85% × 0.94
Dec 31, 2024 11.35% = 0.78 × 0.89 × 16.74% × 0.98
Sep 30, 2024 10.67% = 0.77 × 0.89 × 16.15% × 0.96
Jun 30, 2024 10.59% = 0.76 × 0.89 × 16.11% × 0.97
Mar 31, 2024 10.31% = 0.77 × 0.88 × 15.43% × 0.98
Dec 31, 2023 10.41% = 0.77 × 0.88 × 15.30% × 1.00
Sep 30, 2023 10.51% = 0.77 × 0.88 × 15.47% × 1.00
Jun 30, 2023 10.11% = 0.78 × 0.87 × 14.94% × 0.99
Mar 31, 2023 9.19% = 0.78 × 0.87 × 13.89% × 0.98
Dec 31, 2022 8.94% = 0.79 × 0.87 × 13.38% × 0.98
Sep 30, 2022 8.71% = 0.81 × 0.87 × 12.70% × 0.97
Jun 30, 2022 7.96% = 0.83 × 0.86 × 11.89% × 0.94
Mar 31, 2022 8.40% = 0.83 × 0.87 × 12.52% × 0.93
Dec 31, 2021 9.02% = 0.83 × 0.87 × 12.95% × 0.97
Sep 30, 2021 9.49% = 0.81 × 0.88 × 14.11% × 0.95
Jun 30, 2021 10.58% = 0.80 × 0.89 × 15.48% × 0.96
Mar 31, 2021 10.37% = 0.80 × 0.89 × 15.76% × 0.92
Dec 31, 2020 9.95% = 0.81 × 0.88 × 15.57% × 0.90
Sep 30, 2020 — = — × — × — × —
Jun 30, 2020 — = — × — × — × —
Mar 31, 2020 — = — × — × — × —

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2025 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Sherwin-Williams Co., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2025 11.63% = 0.77 × 0.89 × 16.85%
Dec 31, 2024 11.61% = 0.78 × 0.89 × 16.74%
Sep 30, 2024 11.09% = 0.77 × 0.89 × 16.15%
Jun 30, 2024 10.92% = 0.76 × 0.89 × 16.11%
Mar 31, 2024 10.52% = 0.77 × 0.88 × 15.43%
Dec 31, 2023 10.36% = 0.77 × 0.88 × 15.30%
Sep 30, 2023 10.50% = 0.77 × 0.88 × 15.47%
Jun 30, 2023 10.20% = 0.78 × 0.87 × 14.94%
Mar 31, 2023 9.41% = 0.78 × 0.87 × 13.89%
Dec 31, 2022 9.12% = 0.79 × 0.87 × 13.38%
Sep 30, 2022 8.94% = 0.81 × 0.87 × 12.70%
Jun 30, 2022 8.45% = 0.83 × 0.86 × 11.89%
Mar 31, 2022 9.00% = 0.83 × 0.87 × 12.52%
Dec 31, 2021 9.35% = 0.83 × 0.87 × 12.95%
Sep 30, 2021 10.00% = 0.81 × 0.88 × 14.11%
Jun 30, 2021 11.05% = 0.80 × 0.89 × 15.48%
Mar 31, 2021 11.23% = 0.80 × 0.89 × 15.76%
Dec 31, 2020 11.06% = 0.81 × 0.88 × 15.57%
Sep 30, 2020 — = — × — × —
Jun 30, 2020 — = — × — × —
Mar 31, 2020 — = — × — × —

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

The primary reason for the increase in net profit margin ratio over Q1 2025 is the increase in operating profitability measured by EBIT margin ratio.