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: 2026-09-30), 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).
An analysis of the long-term investment activity ratios reveals a consistent decline in the efficiency of fixed asset and equity utilization, contrasted by a relatively stable total asset turnover. There is a clear trend of diminishing returns on invested capital in terms of revenue generation over the period from March 2022 to September 2026.
- Net Fixed Asset Turnover
- A significant and sustained downward trend is observed in the net fixed asset turnover ratio, which decreased from 10.64 in March 2022 to a low of 5.69 in March 2026, before a slight recovery to 5.90 by September 2026. This contraction indicates that the growth in net fixed assets has outpaced the growth in sales, leading to a reduction in the revenue generated per unit of fixed investment.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The ratio incorporating right-of-use assets mirrors the decline seen in net fixed assets, falling from 5.42 in March 2022 to 3.94 in September 2026. The steady decline, particularly accelerating after March 2023, suggests that both owned and leased long-term assets have become less efficient in driving top-line growth.
- Total Asset Turnover
- Unlike fixed asset metrics, total asset turnover remained relatively resilient. The ratio fluctuated within a narrow range, peaking at 1.00 between September and December 2023 and reaching a low of 0.89 in September 2025. The stability of this ratio suggests that the decrease in fixed asset efficiency was partially offset by the management of other asset categories, maintaining an overall asset utilization rate near 0.92 by the end of the period.
- Equity Turnover
- Equity turnover experienced a notable decline from 9.08 in March 2022 to a trough of 5.13 in December 2025. While a recovery to 6.26 was noted by September 2026, the overall trend points to a decrease in the efficiency with which shareholder equity is being used to generate revenue. This pattern often reflects an increase in the equity base, such as through retained earnings, that has not been immediately matched by a corresponding increase in sales volume.
In summary, the data indicates a period of aggressive expansion or capitalization in fixed assets and equity that has resulted in lower turnover ratios. While total asset efficiency has been maintained, the specific efficiency of long-term investments has deteriorated significantly over the observed timeframe.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Net Fixed Asset Turnover
Sherwin-Williams Co., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2026 | 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 | 6,860,000) | 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 | 4,225,600) | 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 | 5.90 | 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 | 1.21 | 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: 2026-09-30), 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 Q3 2026 Calculation
Net fixed asset turnover
= (Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025)
÷ Property, plant and equipment, net
= (6,860,000 + 6,789,300 + 5,666,900 + 5,595,900)
÷ 4,225,600 = 5.90
2 Click competitor name to see calculations.
A consistent downward trend is observed in the net fixed asset turnover ratio from March 31, 2022, through September 30, 2026. The ratio decreased from a high of 10.64 to a low of 5.69 in March 2026, before experiencing a slight recovery to 5.90 by the end of the period. This trajectory indicates a diminishing efficiency in generating sales relative to the investment in fixed assets.
- Net Sales Performance
- Net sales exhibit a clear seasonal pattern, typically peaking in the second and third quarters and dipping in the fourth and first quarters. While sales have grown overall—rising from approximately 4.99 billion in March 2022 to 6.86 billion in September 2026—the growth rate has been moderate and subject to cyclical fluctuations.
- Fixed Asset Accumulation
- There is a steady and aggressive increase in net property, plant, and equipment. The value of net fixed assets grew from 1.91 billion in March 2022 to 4.23 billion in September 2026, representing more than a doubling of the asset base. This indicates a period of significant capital expenditure and long-term investment in infrastructure.
- Net Fixed Asset Turnover Dynamics
- The decline in the turnover ratio is driven by the fact that the growth in net fixed assets has significantly outpaced the growth in net sales. Between December 31, 2022, and December 31, 2024, the ratio dropped from 10.04 to 6.54, reflecting a period where new capacity or infrastructure investments had not yet yielded proportional increases in revenue.
- Recent Trend Stabilization
- Following a period of continuous decline, the ratio reached its lowest point of 5.69 in March 2026. A subsequent modest increase to 5.79 in June 2026 and 5.90 in September 2026 suggests a potential stabilization of the ratio as sales growth begins to align more closely with the expanded asset base.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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: 2026-09-30), 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 Q3 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (6,860,000 + 6,789,300 + 5,666,900 + 5,595,900)
÷ 6,327,100 = 3.94
Analysis of the investment activity ratios indicates a sustained decline in the efficiency of fixed asset utilization over the observed period, characterized by an asset growth rate that consistently outpaced revenue growth.
- Net Sales Trends
- Net sales exhibit a clear seasonal pattern, with recurring peaks in the second and third quarters of each year. Despite these fluctuations, an overall upward trend is evident, with sales increasing from approximately 4.99 billion in March 2022 to 6.86 billion by September 2026.
- Fixed Asset Expansion
- The net property, plant, and equipment, including right-of-use assets, grew steadily and without interruption throughout the period. The asset base expanded from 3.75 billion in March 2022 to 6.33 billion by September 2026, reflecting a period of aggressive capital expenditure and investment in long-term infrastructure.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio experienced a significant downward trend, falling from a peak of 5.57 in September 2022 to a low of 3.84 in December 2025. This contraction indicates that the substantial increase in the fixed asset base was not matched by a commensurate increase in sales, leading to lower asset productivity. A particularly sharp decline is observed between December 2022 and December 2024, where the ratio dropped from 5.44 to 4.21.
- Recent Performance and Stabilization
- A stabilization phase is observed beginning in early 2026. After reaching a trough in late 2025, the turnover ratio showed a gradual recovery, rising from 3.85 in March 2026 to 3.94 in September 2026. This shift suggests that the productivity of the expanded asset base may be starting to improve as recent investments begin to contribute more effectively to revenue generation.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Total Asset Turnover
Sherwin-Williams Co., total asset turnover calculation (quarterly data)
| Sep 30, 2026 | 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 | 6,860,000) | 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 | 26,961,400) | 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 | 0.92 | 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 | 0.41 | 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: 2026-09-30), 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 Q3 2026 Calculation
Total asset turnover
= (Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025)
÷ Total assets
= (6,860,000 + 6,789,300 + 5,666,900 + 5,595,900)
÷ 26,961,400 = 0.92
2 Click competitor name to see calculations.
The analysis of asset utilization efficiency from March 2022 through September 2026 reveals a trajectory characterized by an initial phase of optimization, followed by a period of decline and subsequent stabilization.
- Efficiency Growth Phase
- From March 2022 to December 2023, the total asset turnover ratio demonstrated a steady upward trend, rising from 0.93 to a peak of 1.00. This improvement indicates that net sales grew at a rate exceeding the expansion of the total asset base, reflecting enhanced operational efficiency in generating revenue from the company's investments.
- Period of Asset Underutilization
- Starting in early 2024, a downward shift in the ratio is observed, declining from 0.98 in March 2024 to a minimum of 0.89 by September 2025. This contraction suggests that asset accumulation outpaced sales growth during this window. The increase in total assets from approximately 23.4 billion in March 2024 to 26.2 billion in September 2025 occurred without a proportional increase in quarterly sales, leading to a temporary reduction in asset productivity.
- Stabilization and Scale
- Between December 2025 and September 2026, the total asset turnover ratio stabilized, fluctuating narrowly between 0.91 and 0.92. During this interval, net sales reached their highest recorded levels, peaking at 6.86 billion in September 2026. The stabilization indicates a realignment where the growth in revenue began to keep pace with the expanded asset base of 26.96 billion.
In summary, the long-term trend indicates that while the company has significantly increased its scale in both assets and sales, the efficiency of asset utilization has normalized at a slightly lower level than the 2023 peak, settling into a consistent range throughout 2026.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Equity Turnover
Sherwin-Williams Co., equity turnover calculation (quarterly data)
| Sep 30, 2026 | 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 | 6,860,000) | 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 | 3,976,700) | 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 | 6.26 | 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 | 0.92 | 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: 2026-09-30), 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 Q3 2026 Calculation
Equity turnover
= (Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025)
÷ Shareholders’ equity
= (6,860,000 + 6,789,300 + 5,666,900 + 5,595,900)
÷ 3,976,700 = 6.26
2 Click competitor name to see calculations.
An analysis of the financial performance from March 2022 through September 2026 reveals a general expansion in both revenue and the capital base, though the efficiency of equity utilization has experienced a notable decline over the period.
- Net Sales Trends
- Net sales exhibit a consistent seasonal pattern, characterized by quarterly peaks in the second and third quarters and troughs in the fourth and first quarters. Despite this seasonality, a long-term upward trajectory is evident, with quarterly revenues growing from approximately 4.99 billion USD in March 2022 to 6.86 billion USD by September 2026.
- Shareholders’ Equity Evolution
- The capital base has expanded significantly, increasing from 2.23 billion USD in March 2022 to a peak of 4.60 billion USD in September 2024. While there was a moderate contraction in equity during the first half of 2026, the overall trend remains positive, ending the period at 3.98 billion USD.
- Equity Turnover Performance
- Equity turnover has followed a general downward trend, decreasing from a high of 9.08 in March 2022 to a period low of 5.13 in December 2025. This decline indicates that the growth in shareholders' equity outpaced the growth in net sales for much of the analyzed timeframe, suggesting a reduction in the efficiency of equity in generating revenue. However, a recovery is observed in 2026, with the ratio climbing back to 6.26 by September 2026, coinciding with a reduction in total equity and a simultaneous increase in sales volume.
The relationship between the increasing capital base and the revenue growth suggests a transition in the investment structure. The initial high turnover rates shifted toward a more capital-heavy position before showing signs of improved efficiency in the final three quarters of the sequence.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?