Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Sherwin-Williams Co. pages available for free this week:
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Sherwin-Williams Co. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Sherwin-Williams Co., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a declining trend over the analyzed period. Starting at 10.01 in 2020, it peaked slightly in 2021 at 10.68 but then continuously decreased to 6.21 by 2024. This decline indicates a reduction in the efficiency of using net fixed assets to generate sales over time.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This ratio follows a similar downward trend as the net fixed asset turnover. It initially increased from 5.11 in 2020 to 5.44 in 2022, then declined steadily to 4.07 by 2024. The lower values compared to the traditional net fixed asset turnover suggest that including right-of-use assets, which likely added to the asset base, dilutes the turnover ratio, reflecting changes in asset utilization due to leasing.
- Total Asset Turnover
- Total asset turnover demonstrates relative stability, with a slight upward movement from 0.90 in 2020 to 1.00 in 2023, followed by a minor decrease to 0.98 in 2024. This pattern indicates consistent efficiency in using total assets to generate revenue, with only minor fluctuations during the period.
- Equity Turnover
- Equity turnover exhibits a notable increase from 5.09 in 2020 to 8.18 in 2021, suggesting a significant rise in the efficiency of equity utilization at that time. However, the ratio then declines progressively to 5.70 by 2024, indicating a reduced ability to generate revenue per unit of equity over the latter years.
Net Fixed Asset Turnover
Sherwin-Williams Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Linde plc | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Chemicals | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Materials | ||||||
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).
1 2024 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net, including finance lease right-of-use assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends and shifts over the five-year period under review.
- Net Sales
- There is a consistent upward trend in net sales from 2020 through 2024. The sales figures increased from approximately 18.36 billion USD in 2020 to nearly 23.10 billion USD in 2024. This growth reflects a positive trajectory, with notable acceleration between 2021 and 2023, followed by stabilization in the last year.
- Property, Plant, and Equipment (PP&E), Net
- Net PP&E values exhibit a substantial increase across the period. Starting at around 1.83 billion USD in 2020, the value rose markedly to 3.72 billion USD by 2024. This reflects significant capital investment or asset acquisition, particularly pronounced after 2021, indicating ongoing expansion or modernization of fixed assets.
- Net Fixed Asset Turnover
- This ratio demonstrates a declining trend over the years. Initially, the ratio was high at 10.01 in 2020, slightly increasing to 10.68 in 2021 but thereafter steadily decreasing to 6.21 by 2024. The decline in this turnover ratio suggests that while the company has increased its investment in PP&E, the sales growth has not kept pace proportionally, indicating potentially reduced efficiency or longer periods required for asset utilization to contribute to revenue generation.
In summary, the company shows strong and steady sales growth coupled with significant increases in fixed assets, although the declining net fixed asset turnover suggests a potential dilution of asset efficiency. This pattern may warrant attention to capital deployment effectiveness and operational productivity as the company continues to expand its asset base.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Sherwin-Williams Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets | ||||||
| Operating lease right-of-use assets | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Linde plc | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Chemicals | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Materials | ||||||
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated a consistent upward trajectory from 2020 through 2024. The figures increased from 18,361,700 thousand US dollars in 2020 to 23,098,500 thousand US dollars in 2024. The growth appears steady, with notable increments of approximately one to two billion US dollars annually, though the pace of increase slowed slightly between 2023 and 2024.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment (including finance lease right-of-use assets) also showed a steady increase over the five-year period. It rose from 3,595,600 thousand US dollars in 2020 to 5,674,500 thousand US dollars in 2024. This suggests ongoing investment in fixed assets and potentially expanded operational capacity or modernization efforts. The rate of increase accelerated notably in the last two years, indicating heightened capital expenditure.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures the efficiency of utilizing fixed assets to generate sales, exhibited a declining trend over the period. Starting at 5.11 in 2020, it increased slightly to 5.44 in 2022 but then declined more sharply to 4.07 by 2024. This suggests that although sales increased, the growth in fixed assets outpaced sales growth, leading to reduced asset turnover efficiency. The declining ratio could indicate diminishing returns on recent investments or a lag in translating asset growth into proportional sales increases.
Total Asset Turnover
Sherwin-Williams Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Linde plc | ||||||
| Total Asset Turnover, Sector | ||||||
| Chemicals | ||||||
| Total Asset Turnover, Industry | ||||||
| Materials | ||||||
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).
1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the annual financial data reveals several notable trends regarding sales, asset base, and asset efficiency over the five-year period.
- Net Sales
- Net sales demonstrate a consistent upward trend, increasing from $18,361,700 thousand in 2020 to $23,098,500 thousand in 2024. This represents a cumulative growth of approximately 25.8% over the five years. The most significant yearly growth appears between 2021 and 2022, with a rise of about 11%, followed by more moderate increments in subsequent years.
- Total Assets
- Total assets have steadily increased from $20,401,600 thousand in 2020 to $23,632,600 thousand in 2024, indicating a gradual expansion of the asset base. The growth rate is relatively uniform, with no pronounced acceleration or deceleration in asset accumulation during the observed period. The asset growth aligns broadly with the sales expansion.
- Total Asset Turnover
- The total asset turnover ratio displays a gradual improvement from 0.90 in 2020 to a peak of 1.00 in 2023, with a slight decrease to 0.98 in 2024. This trend suggests an enhancing efficiency in using assets to generate sales up to 2023, followed by a modest reduction in turnover in the final year. Despite the slight dip, the ratio remains higher than at the start of the period, signaling an overall better utilization of assets.
In summary, the data indicates sustained growth in sales supported by a moderately expanding asset base. Improvements in asset turnover ratio through most of the period point to enhanced operational efficiency in leveraging assets to produce revenues. The slight decline in asset turnover in the last year warrants attention but does not overshadow the overall positive trend in asset use efficiency.
Equity Turnover
Sherwin-Williams Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Linde plc | ||||||
| Equity Turnover, Sector | ||||||
| Chemicals | ||||||
| Equity Turnover, Industry | ||||||
| Materials | ||||||
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).
1 2024 Calculation
Equity turnover = Net sales ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales have exhibited a consistent upward trend over the five-year period. Starting at approximately 18.4 billion USD in 2020, sales increased steadily each year, reaching around 23 billion USD by 2023. The growth rate slowed in the final year, with sales marginally rising to 23.1 billion USD in 2024, indicating a possible stabilization in revenue expansion.
- Shareholders’ Equity
- Shareholders’ equity showed considerable fluctuations during the review period. It decreased notably from about 3.6 billion USD in 2020 to approximately 2.4 billion USD in 2021, which may indicate significant capital depletion or dividend payments. However, equity rebounded strongly in subsequent years, climbing to around 4.1 billion USD by 2024, suggesting recovery and possible reinvestments or retained earnings accumulation.
- Equity Turnover Ratio
- The equity turnover ratio experienced considerable variation. It rose sharply from 5.09 in 2020 to a peak of 8.18 in 2021, reflecting higher efficiency in generating sales from shareholders’ equity despite the equity decline that year. After 2021, the ratio declined year over year, falling to 5.7 by 2024. This decrease corresponds with the substantial increase in equity, which outpaced the growth in sales, leading to reduced turnover efficiency.
- Overall Insights
- The data indicate a period of initial financial challenge in 2021 with decreased equity but robust sales generation, as evidenced by the spike in equity turnover. Recovery in equity levels from 2022 onward has contributed to improved capitalization. However, the slowing growth in net sales combined with declining equity turnover may suggest a moderation in operational efficiency or changing capital structure priorities. The company appears to have strengthened its equity base while maintaining a steady, albeit slower, increase in revenue.