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.
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
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Long-term Activity Ratios (Summary)
Sherwin-Williams Co., long-term (investment) activity ratios (quarterly data)
Based on: 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).
A consistent downward trend is observed across all presented investment activity ratios over the analyzed period, spanning from March 31, 2022, to December 31, 2025. This suggests a decreasing efficiency in utilizing assets to generate revenue. The rate of decline appears to accelerate in the later periods examined.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a marked decline, decreasing from 10.64 in March 2022 to 5.70 in December 2025. This indicates that the company is generating less revenue for each dollar invested in fixed assets. The most substantial decreases occur between December 2022 and March 2023, and again between September 2023 and December 2024. This suggests potential issues with asset utilization or a shift in the company’s operational strategy.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also exhibits a consistent downward trajectory, moving from 5.42 in March 2022 to 3.84 in December 2025. The inclusion of operating lease obligations and right-of-use assets does not alter the overall trend; however, the values are consistently lower than the standard net fixed asset turnover, indicating that lease obligations contribute to a lower overall asset efficiency. The rate of decline mirrors that of the standard ratio, with notable drops in the latter half of the period.
- Total Asset Turnover
- The total asset turnover ratio shows a more moderate, but still consistent, decline from 0.93 in March 2022 to 0.91 in December 2025. While the decrease is less pronounced than with fixed assets, it still indicates a diminishing ability to generate sales from the company’s total asset base. The ratio plateaus around 0.98-1.00 in the first half of 2023 before beginning a more consistent decline.
- Equity Turnover
- The equity turnover ratio declines from 9.08 in March 2022 to 5.13 in December 2025. This suggests a decreasing efficiency in generating revenue from shareholder equity. The decline is relatively steady throughout the period, with a slight acceleration in the latter half of 2024 and 2025. This could indicate a decrease in profitability relative to equity or an increase in equity without a corresponding increase in revenue.
Collectively, these ratios suggest a weakening trend in asset utilization efficiency. Further investigation is warranted to determine the underlying causes of these declines, such as changes in sales strategy, increased investment in less productive assets, or shifts in industry dynamics.
Net Fixed Asset Turnover
Sherwin-Williams Co., net fixed asset turnover calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Property, plant and equipment, net | |||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Net fixed asset turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a consistent downward trend over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio fluctuated around 10.6, but progressively declined to 5.70 by the end of the analyzed timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio exhibited relative stability in the first year, ranging from 10.64 to 10.04. While some fluctuation occurred, the values remained comparatively high, suggesting efficient utilization of fixed assets to generate sales.
- Transitional Phase (Mar 31, 2023 – Dec 31, 2023)
- A noticeable decline began in the subsequent year, with the ratio decreasing from 9.57 to 8.13. This suggests a weakening relationship between net sales and the investment in fixed assets. The rate of decline accelerated during this period.
- Continued Decline (Mar 31, 2024 – Dec 31, 2025)
- The downward trend continued and intensified, with the ratio falling from 7.64 to 5.70. This indicates a further reduction in the efficiency with which fixed assets are being used to generate revenue. The most significant drops occurred between September 2024 and March 2025, and again between June and December 2025.
- Underlying Factors
- The decreasing ratio could be attributed to several factors. A potential increase in the company’s fixed asset base without a corresponding increase in net sales would contribute to this trend. Alternatively, a decline in net sales while the fixed asset base remains constant, or even increases, would also result in a lower turnover ratio. Further investigation into the components of both net sales and property, plant, and equipment is warranted to determine the primary drivers of this decline.
The consistent decrease in the net fixed asset turnover ratio warrants attention, as it may indicate diminishing operational efficiency or a potential overinvestment in fixed assets relative to sales generation. Monitoring this trend and understanding its underlying causes are crucial for informed decision-making.
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-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 Q4 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
The net fixed asset turnover ratio, calculated including operating leases and right-of-use assets, demonstrates a consistent downward trend over the observed period spanning from March 31, 2022, to December 31, 2025. Initially, the ratio exhibited relative stability, fluctuating between 5.17 and 5.87 for the first eight quarters. However, a more pronounced decline became evident in subsequent periods.
- Overall Trend
- A clear decreasing pattern is observed in the net fixed asset turnover ratio. The ratio decreased from a high of 5.87 in June 2022 to a low of 3.84 in December 2025, representing a substantial reduction over the analyzed timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- During this period, the ratio remained relatively stable, ranging from 5.42 to 5.57, with a slight dip in the December 2022 quarter. This suggests a consistent level of sales generation relative to the investment in fixed assets during this time.
- Transitional Phase (Mar 31, 2023 – Sep 30, 2023)
- A gradual decline commenced in the first half of 2023, with the ratio decreasing from 5.36 to 5.17. This suggests a slight weakening in the efficiency of fixed asset utilization.
- Accelerated Decline (Dec 31, 2023 – Dec 31, 2025)
- The rate of decline accelerated significantly from December 2023 onwards. The ratio fell from 4.88 to 3.84 over three years. This indicates a progressively diminishing ability to generate sales from the existing fixed asset base. The most substantial decrease occurred between September 2024 and December 2025, with a drop from 4.40 to 3.84.
- Relationship to Sales and Fixed Assets
- While net sales experienced fluctuations, the consistent increase in property, plant, and equipment (including operating leases and right-of-use assets) appears to be a primary driver of the declining turnover ratio. The growth in fixed assets outpaced the growth in net sales, resulting in reduced efficiency.
The observed trend warrants further investigation to determine the underlying causes. Potential factors could include overinvestment in fixed assets, decreased operational efficiency, or shifts in sales strategies. Continued monitoring of this ratio is recommended to assess the long-term implications for profitability and asset utilization.
Total Asset Turnover
Sherwin-Williams Co., total asset turnover calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Total asset turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally increasing trend from March 31, 2022, through September 30, 2023, followed by a period of fluctuation and a slight decline. The ratio demonstrates the company’s efficiency in utilizing its assets to generate sales revenue.
- Overall Trend
- The ratio began at 0.93 in March 2022 and generally increased, peaking at 1.00 in both September and December 2023. Following this peak, the ratio experienced variability, decreasing to 0.91 in March 2025, before a slight increase to 0.91 in December 2025. This suggests an initial improvement in asset utilization, followed by a period of stabilization and then a minor decrease.
- Short-Term Fluctuations
- While the overall trend is relatively stable, quarterly fluctuations are present. A slight dip is observed from December 2022 (0.98) to March 2023 (0.98). A more noticeable decline occurs from September 2024 (0.96) to March 2025 (0.94), continuing to September 2025 (0.89). These fluctuations may be attributable to seasonal sales patterns, inventory management practices, or changes in the composition of assets.
- Recent Performance
- The most recent periods, September 2025 (0.89) and December 2025 (0.91), indicate a potential stabilization or slight recovery after the decline observed in the preceding quarters. However, the ratio remains below the peak achieved in 2023. Further monitoring is needed to determine if this represents a sustained trend or a temporary fluctuation.
- Comparison to Initial Period
- Comparing the initial period (March 31, 2022) to the final period (December 31, 2025), the ratio increased from 0.93 to 0.91. This indicates a modest improvement in asset turnover over the analyzed timeframe, despite the fluctuations observed. The increase, while not substantial, suggests a slight enhancement in the company’s ability to generate sales from its asset base.
Equity Turnover
Sherwin-Williams Co., equity turnover calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Equity turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a general declining trend, although with notable fluctuations. Initially, the ratio exhibited relative stability before experiencing a more pronounced decrease in later periods.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The equity turnover ratio began at 9.08 and peaked at 9.34 before declining to 7.14. This initial decline suggests a decreasing efficiency in generating sales from shareholders’ equity, potentially indicating slower sales growth relative to equity investment or an increase in equity without a corresponding increase in sales.
- Stabilization and Further Decline (Mar 31, 2023 – Dec 31, 2024)
- From March 31, 2023, to December 31, 2024, the ratio fluctuated between approximately 5.55 and 7.13. While there isn’t a consistent upward or downward movement, the values remain lower than those observed in the earlier period. This suggests continued, albeit less dramatic, pressure on the efficiency of equity utilization.
- Recent Period (Mar 31, 2025 – Dec 31, 2025)
- The most recent periods show a continued downward trend, with the ratio falling to 5.13 by December 31, 2025. This represents the lowest value observed throughout the analyzed timeframe, indicating a significant reduction in sales generated per dollar of shareholders’ equity. This could be attributed to factors such as decreased sales, increased equity levels, or a combination of both.
- Overall Trend
- The overall trend indicates a weakening relationship between net sales and shareholders’ equity. The ratio decreased from 9.08 to 5.13 over the period, representing a roughly 44% decline. This warrants further investigation to determine the underlying causes and potential implications for the company’s financial performance.
The observed decline in equity turnover may signal a need for improved asset utilization or a reassessment of capital structure. Continued monitoring of this ratio is recommended to assess whether the trend persists and to inform strategic decision-making.