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: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
The investment activity ratios indicate a significant shift in asset utilization efficiency and capital structure over the analyzed period. While overall asset efficiency has remained relatively stable, there is a pronounced downward trend in the efficiency of fixed asset utilization.
- Net Fixed Asset Turnover
- A sustained and significant decline is observed in the net fixed asset turnover ratio, which decreased from 10.64 in March 2022 to 5.79 by June 2026. This contraction suggests that the growth in net fixed assets has outpaced the growth in revenue, indicating a period of heavy capital investment that has not yet resulted in a proportional increase in sales. This trend is mirrored in the ratio including right-of-use assets, which fell from 5.42 to 3.89 over the same period, further confirming a decrease in the revenue-generating efficiency of the long-term asset base.
- Total Asset Turnover
- In contrast to the fixed asset metrics, the total asset turnover ratio has exhibited remarkable stability. The ratio fluctuated within a narrow band, peaking at 1.00 between September and December 2023 before settling at 0.91 by June 2026. The stability of this ratio, despite the sharp decline in fixed asset turnover, suggests that other components of the balance sheet have shifted to offset the impact of increased fixed asset investment on overall efficiency.
- Equity Turnover
- The equity turnover ratio demonstrates a general downward trajectory, declining from 9.08 in March 2022 to 6.33 in June 2026. Notable volatility occurred in late 2022 and through 2024, with the ratio reaching a low of 5.13 in December 2025 before rebounding in the first half of 2026. This decline indicates that the company is generating less revenue per unit of shareholder equity, which may be attributed to an increase in retained earnings or additional equity infusions that have expanded the equity base more rapidly than revenue growth.
Overall, the divergence between the declining fixed asset turnover and the stable total asset turnover points toward a strategic expansion of the company's long-term infrastructure. The steady decline in equity turnover further suggests a transition toward a more capital-intensive operational model or a strategic accumulation of equity.
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Net Fixed Asset Turnover
Sherwin-Williams Co., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net sales | 6,789,300) | 5,666,900) | 5,595,900) | 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) | ||||||
| Property, plant and equipment, net | 4,219,400) | 4,205,900) | 4,137,400) | 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) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | 5.79 | 5.69 | 5.70 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 1.22 | 1.21 | 1.20 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Net fixed asset turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Property, plant and equipment, net
= (6,789,300 + 5,666,900 + 5,595,900 + 6,358,200)
÷ 4,219,400 = 5.79
2 Click competitor name to see calculations.
A sustained decline in net fixed asset turnover is evident from March 31, 2022, through June 30, 2026, indicating a significant shift in the relationship between the organization's investment in fixed assets and its revenue generation capacity.
- Revenue Performance and Seasonality
- Net sales exhibit a consistent seasonal pattern, with peak revenues typically occurring in the second and third quarters of each fiscal year. While total sales grew from approximately 4.99 billion USD in March 2022 to 6.79 billion USD by June 2026, this growth has been gradual and subject to cyclical fluctuations.
- Fixed Asset Expansion
- Net property, plant, and equipment (PP&E) demonstrates a continuous and aggressive upward trajectory throughout the period. The asset base expanded from 1.91 billion USD in March 2022 to 4.22 billion USD by June 2026, representing a total increase of approximately 121%. This indicates a period of intensive capital expenditure and strategic investment in infrastructure.
- Analysis of Turnover Erosion
- The net fixed asset turnover ratio decreased steadily from a peak of 10.64 in March 2022 to 5.79 in June 2026. This downward trend is the direct result of the growth rate of net fixed assets significantly outpacing the growth rate of net sales. The efficiency with which the company utilizes its fixed assets to generate revenue has diminished by nearly 45% over the analyzed timeframe.
- Asset Utilization Insight
- The divergence between asset accumulation and revenue growth suggests the company is in a heavy expansion phase. The declining turnover ratio implies that the newly acquired fixed assets have not yet reached full operational maturity or have not yet translated into a proportional increase in sales volume, leading to a temporary reduction in asset productivity.
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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: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (6,789,300 + 5,666,900 + 5,595,900 + 6,358,200)
÷ 6,279,300 = 3.89
The net fixed asset turnover ratio exhibits a sustained downward trajectory over the analyzed period, declining from a peak of 5.57 in September 2022 to 3.89 by June 2026. This trend indicates a decrease in the efficiency with which fixed assets, including right-of-use assets, are utilized to generate net sales.
- Fixed Asset Accumulation
- Net property, plant, and equipment grew consistently throughout the entire period, rising from 3.75 billion USD in March 2022 to 6.28 billion USD by June 2026. This steady expansion reflects a significant increase in the company's long-term investment base and capacity.
- Revenue Dynamics
- Net sales demonstrate a recurring seasonal pattern, with peak performance typically occurring in the second and third quarters of each year. Although overall revenue increased—climbing from 5.00 billion USD in March 2022 to 6.79 billion USD in June 2026—the growth in sales did not scale proportionally with the growth of the fixed asset base.
- Turnover Ratio Analysis
- The turnover ratio remained relatively stable between 5.33 and 5.57 from March 2022 through June 2023. However, a period of consistent deterioration began in September 2023, with the ratio falling below 5.00 by December 2023 and continuing a sharp decline through 2024 and 2025. The ratio reached its lowest point of 3.84 in December 2025 before showing signs of marginal stabilization at 3.89 by June 2026.
- Operational Insight
- The divergence between the rapid growth of fixed assets and the more moderate growth of net sales suggests that recent investments in infrastructure or lease acquisitions have not yet yielded a commensurate increase in revenue. The resulting decline in the turnover ratio reflects a period of capacity expansion that has temporarily outpaced sales growth.
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Total Asset Turnover
Sherwin-Williams Co., total asset turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net sales | 6,789,300) | 5,666,900) | 5,595,900) | 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) | ||||||
| Total assets | 26,951,400) | 26,378,700) | 25,901,700) | 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) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | 0.91 | 0.91 | 0.91 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 0.40 | 0.40 | 0.39 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Total asset turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Total assets
= (6,789,300 + 5,666,900 + 5,595,900 + 6,358,200)
÷ 26,951,400 = 0.91
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a distinct trajectory characterized by an initial phase of improving efficiency followed by a period of decline and eventual stabilization. This movement reflects the evolving relationship between the growth of the asset base and the generation of net sales over the analyzed period.
- Efficiency Growth Phase
- From March 31, 2022, through December 31, 2023, a consistent upward trend in asset utilization is observed. The total asset turnover ratio rose from 0.93 to a peak of 1.00. During this interval, net sales growth effectively outpaced the expansion of total assets, indicating an increase in the company's ability to generate revenue from its investment base.
- Asset Expansion and Ratio Compression
- A reversal in the trend began in early 2024, as the ratio declined from 0.98 in December 2023 to a low of 0.89 by September 30, 2025. This contraction is attributed to a steady increase in total assets, which grew from approximately 23.4 billion in March 2024 to 26.9 billion by June 30, 2026. The rate of asset accumulation during this period exceeded the growth rate of net sales, leading to reduced asset productivity.
- Revenue Patterns and Seasonality
- Net sales demonstrate recurring quarterly volatility, with consistent peaks occurring in the second and third quarters of each year. Despite these seasonal surges and an overall increase in nominal sales—rising from 4.99 billion in March 2022 to 6.78 billion by June 2026—the revenue gains were insufficient to maintain the peak turnover ratio achieved in 2023.
- Stabilization Period
- In the final three quarters of the period, from December 31, 2025, to June 30, 2026, the total asset turnover ratio remained constant at 0.91. This suggests that the company reached a state of equilibrium where the growth in net sales aligned proportionately with the continued expansion of the asset base.
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Equity Turnover
Sherwin-Williams Co., equity turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net sales | 6,789,300) | 5,666,900) | 5,595,900) | 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) | ||||||
| Shareholders’ equity | 3,854,700) | 4,431,100) | 4,598,300) | 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) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | 6.33 | 5.40 | 5.13 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 0.91 | 0.90 | 0.89 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Equity turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Shareholders’ equity
= (6,789,300 + 5,666,900 + 5,595,900 + 6,358,200)
÷ 3,854,700 = 6.33
2 Click competitor name to see calculations.
An analysis of the investment activity ratios indicates a sustained downward trend in equity turnover over the majority of the observed period, characterized by a shift in the relationship between revenue generation and the company's equity base.
- Equity Turnover Trend Analysis
- The equity turnover ratio experienced a significant decline from its peak of 9.34 in June 2022 to a period low of 5.13 by December 2025. This persistent contraction suggests a decreasing efficiency in utilizing shareholders' equity to generate net sales. While the ratio remained relatively stable between 7.13 and 7.14 in early 2023, a subsequent steady erosion occurred throughout 2024 and 2025.
- Drivers of Ratio Decline
- The reduction in equity turnover is primarily attributed to the substantial growth in shareholders' equity, which increased from 2,234,300 thousand USD in March 2022 to a peak of 4,598,300 thousand USD in September 2025. Although net sales also trended upward—rising from 4,998,700 thousand USD to 6,358,200 thousand USD in the same timeframe—the expansion of the equity base outpaced revenue growth, thereby compressing the turnover ratio.
- Revenue Seasonality and Impact
- Net sales exhibit a consistent seasonal pattern, typically peaking in the second and third quarters and contracting in the fourth and first quarters of each year. Despite these recurring spikes in sales, the equity turnover ratio did not recover its historical levels, indicating that the growth in the capital base remained the dominant factor influencing the ratio's trajectory.
- Recent Performance Reversal
- A notable reversal in the trend is observed in the final quarter ending June 30, 2026. The equity turnover ratio rose to 6.33, the highest level since 2023. This improvement was driven by a simultaneous increase in net sales to a period high of 6,789,300 thousand USD and a significant reduction in shareholders' equity to 3,854,700 thousand USD, effectively increasing the asset utilization efficiency.
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