Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a consistent downward trend over the periods reviewed. Starting from a high of 10.6 at the beginning of 2021, it declines gradually to 5.95 by the third quarter of 2025. This decrease suggests a reduction in the efficiency with which the company is utilizing its fixed assets to generate sales revenue. The decline accelerates particularly after 2022, indicating a possible slowdown in sales growth relative to fixed asset investment or an increase in the asset base without proportional sales growth.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This ratio similarly exhibits a declining trend, moving from 5.38 in early 2021 down to around 3.94 by the third quarter of 2025. The trend mirrors that of the net fixed asset turnover but at a lower level, reflecting the inclusion of right-of-use assets under operating leases. The steady decline indicates decreasing efficiency in using both owned and leased fixed assets to generate revenue, highlighting potential operational or investment challenges in asset management over the analyzed timeframe.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable with minor fluctuations, starting at 0.92 in early 2021 and experiencing small increases and decreases throughout the period. It peaks at 1.00 twice in 2023 but gradually declines to 0.89 by the third quarter of 2025. This stability followed by a slight decline suggests that overall asset utilization for revenue generation remains relatively efficient but may be weakening slightly towards the later periods, possibly due to asset growth outpacing sales increases.
- Equity Turnover
- Equity turnover exhibits more volatility compared to other turnover ratios. It climbs sharply from 6.13 in early 2021 to a peak of 9.34 mid-2022, indicating a period where shareholder equity was utilized very effectively to generate sales. However, after reaching this peak, the ratio declines progressively, reaching around 5.26 by the third quarter of 2025. This pattern may reflect changes in equity funding or fluctuations in net income relative to equity, with the initial increase suggesting intensified use or leverage of equity, which then normalizes or weakens in later periods.
Net Fixed Asset Turnover
Sherwin-Williams Co., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 6,358,200) | 6,314,500) | 5,305,700) | 5,297,200) | 6,162,500) | 6,271,500) | 5,367,300) | 5,252,200) | 6,116,700) | 6,240,600) | 5,442,400) | 5,230,500) | 6,047,400) | 5,872,300) | 4,998,700) | 4,762,100) | 5,146,700) | 5,379,800) | 4,656,000) | ||||||
| Property, plant and equipment, net | 3,913,200) | 3,805,900) | 3,663,400) | 3,533,200) | 3,344,700) | 3,136,600) | 3,008,800) | 2,836,800) | 2,580,600) | 2,442,500) | 2,362,000) | 2,207,000) | 2,041,200) | 1,961,900) | 1,907,300) | 1,867,300) | 1,827,200) | 1,806,300) | 1,780,400) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | 5.95 | 6.06 | 6.29 | 6.54 | 6.89 | 7.34 | 7.64 | 8.13 | 8.92 | 9.40 | 9.57 | 10.04 | 10.62 | 10.59 | 10.64 | 10.68 | 10.77 | 10.88 | 10.60 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Linde plc | 1.22 | 1.23 | 1.28 | 1.33 | 1.31 | 1.34 | 1.34 | 1.34 | 1.37 | 1.39 | 1.40 | 1.42 | 1.49 | 1.36 | 1.24 | 1.18 | 1.14 | 1.08 | 1.03 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2025 Calculation
Net fixed asset turnover
= (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
÷ Property, plant and equipment, net
= (6,358,200 + 6,314,500 + 5,305,700 + 5,297,200)
÷ 3,913,200 = 5.95
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales exhibit cyclical fluctuations with seasonal peaks generally in the second and third quarters of each year. Starting from approximately 4.66 billion USD in Q1 2021, there is a notable upward movement reaching over 6.3 billion USD by Q3 2025. Despite periodic dips, the overall trend reflects steady growth across the quarterly periods analyzed, indicating expanding revenue over the long term.
- Property, Plant, and Equipment (PP&E), Net
- The net value of property, plant, and equipment demonstrates a consistent upward trajectory across the quarters. Beginning at approximately 1.78 billion USD in Q1 2021, it progressively increases to exceed 3.9 billion USD by Q4 2025. This escalation suggests ongoing capital investment and asset base expansion, likely supporting increased production capacity or operational scale.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio shows a steady downward trend over the examined timeframe. Initially high at around 10.6 in Q1 2021, it declines progressively to below 6.0 by Q3 2025. This decline implies that although fixed assets have been increasing, the efficiency in generating sales from these assets has diminished. The company's asset base expansion outpaces gains in sales volume relative to investments in fixed assets.
- Summary of Insights
- Over the period analyzed, sales revenues have generally increased, supported by significant investment in property, plant, and equipment. However, the declining net fixed asset turnover ratio indicates a reduced efficiency in utilizing fixed assets to generate sales. This pattern suggests the company is likely expanding its asset base faster than its sales growth, which may reflect strategic capacity building or slower returns on recent investments. Monitoring this ratio in conjunction with sales and asset growth will be essential to evaluating ongoing operational efficiency.
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 (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (6,358,200 + 6,314,500 + 5,305,700 + 5,297,200)
÷ 5,902,700 = 3.94
- Net Sales
-
The net sales exhibit a generally cyclical pattern with notable fluctuations across quarters. Starting from approximately 4.66 billion USD in the first quarter of 2021, sales rose steadily through the subsequent quarters of 2021 and peaked around mid-2022 at roughly 6.05 billion USD. Following this peak, there is a marked decline towards the end of 2022, just above 5.23 billion USD.
In 2023, net sales regained momentum, increasing again to about 6.24 billion USD midyear before falling again towards the end of the year to approximately 5.25 billion USD. In 2024, a similar pattern is observed, with sales peaking near 6.27 billion USD midyear then declining by year-end. By the first quarter of 2025, net sales are consistent, fluctuating just above 6.3 billion USD in the later quarters of the timeline.
Overall, net sales demonstrate a pattern of strong mid-year performance followed by a significant drop in the final quarter, suggesting seasonal influences or market demand cycles impacting revenue generation.
- Property, Plant and Equipment, Net
-
The net value of property, plant, and equipment (including operating lease, right-of-use assets) shows a continuous upward trend across the entire period. Starting at approximately 3.51 billion USD in early 2021, these assets grow steadily each quarter, reaching around 5.90 billion USD by the end of 2025.
This consistent growth reflects ongoing capital investment, asset acquisition, or capitalization efforts that may support operational capacity expansion or upgrades. The pace of increase appears steady without strong acceleration or deceleration, indicating a deliberate and sustained asset base enhancement strategy.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
The net fixed asset turnover ratio shows a clear declining trend throughout the period. Beginning with a relatively high ratio of approximately 5.38 at the start of 2021, it remains relatively stable through mid-2022 but then begins to steadily decrease from about 5.5 to below 4.0 by the end of 2025.
This decline suggests that the company’s sales are growing at a slower rate relative to the increase in net fixed assets, indicating diminishing asset efficiency in generating sales. The decreasing turnover ratio could point to either underutilization of the asset base or structural changes where increased asset investment precedes revenue increases.
- Overall Insights
-
The combination of steadily increasing property, plant, and equipment alongside declining net fixed asset turnover suggests that while investment in assets continues, the efficiency of these assets in generating sales is reducing over time. The cyclical sales pattern indicates seasonal or demand fluctuations that impact revenue growth.
Management might need to investigate the causes of the declining asset turnover to ensure that capital investments are effectively contributing to sales growth. The seasonal nature of sales also suggests that operational planning and resource allocation should account for predictable cyclical demand changes.
Total Asset Turnover
Sherwin-Williams Co., total asset turnover calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 6,358,200) | 6,314,500) | 5,305,700) | 5,297,200) | 6,162,500) | 6,271,500) | 5,367,300) | 5,252,200) | 6,116,700) | 6,240,600) | 5,442,400) | 5,230,500) | 6,047,400) | 5,872,300) | 4,998,700) | 4,762,100) | 5,146,700) | 5,379,800) | 4,656,000) | ||||||
| Total assets | 26,206,400) | 25,363,600) | 24,636,100) | 23,632,600) | 23,968,300) | 23,734,000) | 23,428,100) | 22,954,400) | 23,004,500) | 23,166,100) | 23,129,900) | 22,594,000) | 22,245,800) | 22,052,800) | 21,730,400) | 20,666,700) | 20,736,600) | 20,519,600) | 20,435,000) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | 0.89 | 0.91 | 0.94 | 0.98 | 0.96 | 0.97 | 0.98 | 1.00 | 1.00 | 0.99 | 0.98 | 0.98 | 0.97 | 0.94 | 0.93 | 0.97 | 0.95 | 0.96 | 0.92 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Linde plc | 0.39 | 0.39 | 0.40 | 0.41 | 0.40 | 0.41 | 0.41 | 0.41 | 0.42 | 0.42 | 0.42 | 0.42 | 0.45 | 0.42 | 0.38 | 0.38 | 0.35 | 0.34 | 0.33 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2025 Calculation
Total asset turnover
= (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
÷ Total assets
= (6,358,200 + 6,314,500 + 5,305,700 + 5,297,200)
÷ 26,206,400 = 0.89
2 Click competitor name to see calculations.
- Net Sales
-
Net sales demonstrated a general upward trajectory from early 2021 through mid-2025, with notable seasonal fluctuations. Sales increased steadily from March 2021, rising from approximately $4.66 billion to peak levels near $6.35 billion in the third quarter of 2025.
Periods of strong growth were observed particularly between March and September of each year, followed by occasional declines in the fourth quarters. For example, after reaching $6.04 billion in September 2022, sales declined to approximately $5.23 billion in December 2022. This pattern repeated in subsequent years, indicating seasonality in sales performance.
The overall trend reflects resilience and growth despite periodic quarterly drops. Mid-year quarters of 2024 and 2025 also highlight the highest sales points recorded over the horizon examined.
- Total Assets
-
Total assets showed a consistent increase over the period reported. Beginning at about $20.44 billion in March 2021, assets rose steadily to reach approximately $26.21 billion by September 2025.
The growth in asset base appears relatively smooth, without sharp contractions or volatility, suggesting ongoing investments or asset accumulation. This progressive expansion supports the company’s increasing sales capacity and possibly strategic asset acquisitions or capital investments.
Interim fluctuations within quarters were minor, underscoring stable asset management.
- Total Asset Turnover
-
The total asset turnover ratio, representing the efficiency in generating sales from assets, exhibited a slight declining trend over the analyzed period.
Starting near 0.92 in the first quarter of 2021, the ratio peaked close to 1.00 between mid-2022 and early 2023, indicating optimal utilization of assets during this interval. However, following this peak, there was a gradual decline to 0.89 by the third quarter of 2025.
This decrease suggests that while assets have grown significantly, sales growth has not kept pace proportionally in the latter quarters, implying a reduction in operational efficiency or possible lagging sales relative to asset investment.
- Overall Insights
-
The company’s financial trend over this five-year, quarterly span is characterized by increasing net sales and a steadily expanding asset base. Despite these positive indications, the gradual decline in asset turnover ratio may highlight evolving challenges in maximizing asset use efficiently.
Seasonality impacts revenue figures, with recurring declines in the fourth quarters, but sales consistently recover and grow in subsequent quarters. The asset growth supports capacity expansion but also requires attention to ensure sales growth remains in balance with asset investments.
Continued monitoring of asset utilization and sales growth alignment would be beneficial for sustaining operational efficiency and financial performance in future periods.
Equity Turnover
Sherwin-Williams Co., equity turnover calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net sales | 6,358,200) | 6,314,500) | 5,305,700) | 5,297,200) | 6,162,500) | 6,271,500) | 5,367,300) | 5,252,200) | 6,116,700) | 6,240,600) | 5,442,400) | 5,230,500) | 6,047,400) | 5,872,300) | 4,998,700) | 4,762,100) | 5,146,700) | 5,379,800) | 4,656,000) | ||||||
| Shareholders’ equity | 4,425,300) | 4,400,900) | 4,130,100) | 4,051,200) | 4,156,100) | 3,751,800) | 3,503,700) | 3,715,800) | 3,780,000) | 3,631,100) | 3,166,800) | 3,102,100) | 2,597,800) | 2,224,600) | 2,234,300) | 2,437,200) | 2,690,300) | 2,840,400) | 3,078,700) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | 5.26 | 5.24 | 5.58 | 5.70 | 5.55 | 6.13 | 6.56 | 6.20 | 6.09 | 6.32 | 7.13 | 7.14 | 8.35 | 9.34 | 9.08 | 8.18 | 7.31 | 6.92 | 6.13 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| Linde plc | 0.87 | 0.86 | 0.87 | 0.87 | 0.84 | 0.86 | 0.84 | 0.83 | 0.83 | 0.83 | 0.83 | 0.83 | 0.90 | 0.82 | 0.74 | 0.70 | 0.67 | 0.63 | 0.60 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2025 Calculation
Equity turnover
= (Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024)
÷ Shareholders’ equity
= (6,358,200 + 6,314,500 + 5,305,700 + 5,297,200)
÷ 4,425,300 = 5.26
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibit a generally cyclical pattern with peaks often occurring in the mid-year quarters (June and September) and declines in the later quarters of each year. The figures show an upward trajectory from early 2021 through 2022, reaching a high in the mid-year quarters of 2022 and 2023. However, there is a noticeable decline in the final quarter of each year, followed by a recovery in the subsequent quarters. The most recent data for 2024 and 2025 continues this cyclical trend, with sales increasing mid-year and then experiencing some drop-offs towards year-end. Overall, net sales have grown moderately over the observed period, reaching their highest values in the mid-year quarters of 2025.
- Shareholders’ Equity
- Shareholders’ equity shows a declining trend from the beginning of 2021 through the end of 2021, indicating a possible reduction in retained earnings or other equity components during that period. From early 2022 onward, equity begins to recover and demonstrates a steady upward trend through 2023 and 2024, reaching peak values in the third quarter of 2024. In 2025, equity continues to increase slightly, maintaining a positive trend. This pattern suggests improved profitability or capital management resulting in the strengthening of the company’s equity base in the latter periods.
- Equity Turnover Ratio
- The equity turnover ratio, which measures the efficiency of using shareholders’ equity to generate sales, shows a rising trend from early 2021 to the first quarter of 2022, peaking at over 9.0. This indicates increased effectiveness in utilizing equity during this time. However, from mid-2022 onwards, there is a consistent decline in the ratio, reflecting either slower sales growth relative to equity or an increasing equity base not matched by proportional sales growth. By 2025, the ratio stabilizes at a lower level around 5.2 to 5.3, suggesting a moderation in operational efficiency or a more conservative capital structure.
- Summary of Trends
- The data reflects a business exhibiting seasonal fluctuations in sales, with mid-year sales peaks followed by year-end declines across multiple years. Shareholders’ equity declined initially but has shown sustained recovery and growth since 2022, suggesting improved financial health and possible retained earnings accumulation. The equity turnover ratio corroborates this, indicating that operational efficiency peaked early in the period but has since moderated as equity grew faster than sales. These combined patterns may signal strategic shifts toward strengthening the balance sheet while managing sales cycles inherent in the business model.