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.
Long-term Activity Ratios (Summary)
Sherwin-Williams Co., long-term (investment) activity ratios
Based on: 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Sherwin-Williams Co. net fixed asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Sherwin-Williams Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2019 to 2020 and from 2020 to 2021. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Sherwin-Williams Co. total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Sherwin-Williams Co. equity turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Net Fixed Asset Turnover
Sherwin-Williams Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 19,944,600) | 18,361,700) | 17,900,800) | 17,534,493) | 14,983,788) | |
| Property, plant and equipment, net | 1,867,300) | 1,834,500) | 1,835,200) | 1,776,839) | 1,877,115) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 10.68 | 10.01 | 9.75 | 9.87 | 7.98 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Linde plc | 1.18 | 0.94 | 0.97 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Materials | 0.82 | 0.64 | 0.63 | — | — | |
Based on: 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).
1 2021 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 19,944,600 ÷ 1,867,300 = 10.68
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Sherwin-Williams Co. net fixed asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
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, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 19,944,600) | 18,361,700) | 17,900,800) | 17,534,493) | 14,983,788) | |
| Property, plant and equipment, net | 1,867,300) | 1,834,500) | 1,835,200) | 1,776,839) | 1,877,115) | |
| Operating lease right-of-use assets | 1,820,600) | 1,761,100) | 1,685,600) | —) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 3,687,900) | 3,595,600) | 3,520,800) | 1,776,839) | 1,877,115) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 5.41 | 5.11 | 5.08 | 9.87 | 7.98 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Linde plc | 1.14 | 0.91 | 0.94 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Materials | 0.81 | 0.63 | 0.62 | — | — | |
Based on: 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).
1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 19,944,600 ÷ 3,687,900 = 5.41
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Sherwin-Williams Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2019 to 2020 and from 2020 to 2021. |
Total Asset Turnover
Sherwin-Williams Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 19,944,600) | 18,361,700) | 17,900,800) | 17,534,493) | 14,983,788) | |
| Total assets | 20,666,700) | 20,401,600) | 20,496,200) | 19,134,279) | 19,958,427) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.97 | 0.90 | 0.87 | 0.92 | 0.75 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Linde plc | 0.38 | 0.31 | 0.33 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Materials | 0.39 | 0.31 | 0.31 | — | — | |
Based on: 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).
1 2021 Calculation
Total asset turnover = Net sales ÷ Total assets
= 19,944,600 ÷ 20,666,700 = 0.97
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Sherwin-Williams Co. total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Equity Turnover
Sherwin-Williams Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 19,944,600) | 18,361,700) | 17,900,800) | 17,534,493) | 14,983,788) | |
| Shareholders’ equity | 2,437,200) | 3,610,800) | 4,123,300) | 3,730,745) | 3,692,188) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 8.18 | 5.09 | 4.34 | 4.70 | 4.06 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Linde plc | 0.70 | 0.58 | 0.58 | — | — | |
| Equity Turnover, Industry | ||||||
| Materials | 0.82 | 0.66 | 0.66 | — | — | |
Based on: 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).
1 2021 Calculation
Equity turnover = Net sales ÷ Shareholders’ equity
= 19,944,600 ÷ 2,437,200 = 8.18
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Sherwin-Williams Co. equity turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |