Sherwin-Williams Co. (NYSE:SHW)

Return on Investment

Sherwin-Williams Co., profitability ratios (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
Return on Sales
Gross profit margin	48.60%	48.98%	49.04%	48.85%	48.88%	48.87%	48.72%	48.47%	48.46%	48.07%	47.30%	46.67%	45.35%	44.06%	42.90%	42.10%	41.38%	41.01%	41.82%
Operating profit margin	16.13%	16.35%	16.13%	16.17%	16.04%	15.98%	16.66%	16.50%	16.29%	16.17%	15.58%	15.48%	15.30%	14.89%	13.97%	13.56%	12.82%	11.94%	12.49%
Net profit margin	10.74%	11.01%	10.86%	10.90%	11.05%	11.03%	11.63%	11.61%	11.09%	10.92%	10.52%	10.36%	10.50%	10.20%	9.41%	9.12%	8.94%	8.45%	9.00%
Return on Investment
Return on equity (ROE)	67.29%	69.74%	58.66%	55.86%	58.12%	57.83%	64.89%	66.19%	61.54%	66.98%	68.97%	64.29%	63.99%	64.51%	67.16%	65.12%	74.59%	78.89%	81.71%
Return on assets (ROA)	9.93%	9.97%	9.85%	9.92%	9.81%	10.03%	10.88%	11.35%	10.67%	10.59%	10.31%	10.41%	10.51%	10.11%	9.19%	8.94%	8.71%	7.96%	8.40%

The profitability profile demonstrates a consistent upward trajectory in margin efficiency from early 2022 through late 2026, characterized by substantial gains in gross and operating profitability. While margin expansion has been steady, returns on capital show more volatility, with a general normalization of equity returns over the period.

Gross Profit Margin: A significant expansion is observed, with the margin rising from 41.82% in March 2022 to a peak of 49.04% in March 2026. The most aggressive growth occurred between March 2023 and June 2024, after which the margin stabilized within a tight range between 48.46% and 49.04%.
Operating and Net Profit Margins: Operating margins improved from 12.49% to approximately 16.13%, reflecting enhanced operational leverage and cost management. Similarly, the net profit margin increased from 9.00% in March 2022 to a peak of 11.63% in March 2024, eventually stabilizing around 10.74% by September 2026.
Return on Equity (ROE): A general downward trend is evident in ROE, which declined from a high of 81.71% in March 2022 to fluctuate between 55.86% and 69.74% in subsequent years. This contraction suggests a potential increase in the equity base or a shift in the capital structure, despite the overall increase in net profit margins.
Return on Assets (ROA): ROA showed an initial improvement from 8.40% to a high of 11.35% in December 2023. Following this peak, the ratio entered a period of relative stability, maintaining a range between 9.81% and 10.67% through 2025 and 2026, indicating a consistent ability to generate earnings from the asset base.

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Sherwin-Williams Co., gross profit margin 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)
Gross profit	3,277,200)	3,338,000)	2,780,500)	2,712,600)	3,125,500)	3,118,300)	2,559,100)	2,573,200)	3,027,500)	3,063,400)	2,531,000)	2,548,700)	2,916,200)	2,872,300)	2,420,900)	2,233,800)	2,589,400)	2,449,000)	2,052,900)
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)
Profitability Ratio
Gross profit margin¹	48.60%	48.98%	49.04%	48.85%	48.88%	48.87%	48.72%	48.47%	48.46%	48.07%	47.30%	46.67%	45.35%	44.06%	42.90%	42.10%	41.38%	41.01%	41.82%
Benchmarks
Gross Profit Margin, Competitors²
Linde plc	47.86%	48.35%	48.77%	48.83%	48.78%	48.45%	48.26%	48.06%	47.75%	47.56%	47.26%	46.76%	46.11%	44.22%	42.77%	41.70%	40.91%	41.68%	42.42%

¹ Q3 2026 Calculation
Gross profit margin = 100 × (Gross profit_{Q3 2026} + Gross profit_{Q2 2026} + Gross profit_{Q1 2026} + Gross profit_{Q4 2025}) ÷ (Net sales_{Q3 2026} + Net sales_{Q2 2026} + Net sales_{Q1 2026} + Net sales_{Q4 2025})
= 100 × (3,277,200 + 3,338,000 + 2,780,500 + 2,712,600) ÷ (6,860,000 + 6,789,300 + 5,666,900 + 5,595,900) = 48.60%

² Click competitor name to see calculations.

A consistent upward trajectory in the gross profit margin is observed from the first quarter of 2022 through early 2026, followed by a period of stabilization. The margin expanded from a low of 41.01% in June 2022 to a peak of 49.04% in March 2026, indicating a significant improvement in the company's ability to control the cost of goods sold relative to net sales.

Margin Expansion Phase: Between March 2022 and March 2024, the gross profit margin experienced a sustained and aggressive increase. After an initial dip to 41.01% in June 2022, the margin climbed steadily, surpassing 45% by September 2023 and reaching 47.30% by March 2024. This growth suggests a successful implementation of pricing adjustments or a substantial reduction in raw material and production costs.
Stabilization and Plateau: From June 2024 through September 2026, the gross profit margin entered a phase of relative stability. The values remained concentrated within a narrow range between 48.46% and 49.04%. This plateau indicates that the efficiency gains achieved during the prior expansion phase have reached a point of maturation, establishing a new baseline for operational profitability.
Revenue and Profitability Correlation: Net sales exhibit a clear seasonal pattern, with consistent peaks occurring in the second and third quarters of each fiscal year and troughs in the fourth and first quarters. Despite these fluctuations in sales volume, the gross profit margin continued to improve or remain stable, suggesting that the company's profitability is not adversely impacted by seasonal volatility in demand.

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Sherwin-Williams Co., operating profit margin 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)
Operating income	1,202,900)	1,230,900)	804,600)	778,700)	1,177,400)	1,100,400)	756,400)	698,200)	1,133,100)	1,251,300)	729,200)	641,700)	1,097,800)	1,110,800)	717,400)	597,100)	993,900)	847,000)	564,900)
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)
Profitability Ratio
Operating profit margin¹	16.13%	16.35%	16.13%	16.17%	16.04%	15.98%	16.66%	16.50%	16.29%	16.17%	15.58%	15.48%	15.30%	14.89%	13.97%	13.56%	12.82%	11.94%	12.49%
Benchmarks
Operating Profit Margin, Competitors²
Linde plc	25.28%	26.45%	26.48%	26.25%	27.38%	26.75%	26.42%	26.16%	25.41%	25.47%	24.99%	24.42%	23.68%	21.89%	17.46%	16.09%	14.87%	14.40%	16.53%

¹ Q3 2026 Calculation
Operating profit margin = 100 × (Operating income_{Q3 2026} + Operating income_{Q2 2026} + Operating income_{Q1 2026} + Operating income_{Q4 2025}) ÷ (Net sales_{Q3 2026} + Net sales_{Q2 2026} + Net sales_{Q1 2026} + Net sales_{Q4 2025})
= 100 × (1,202,900 + 1,230,900 + 804,600 + 778,700) ÷ (6,860,000 + 6,789,300 + 5,666,900 + 5,595,900) = 16.13%

² Click competitor name to see calculations.

The operating profit margin exhibits a sustained upward trajectory over the analyzed period, progressing from 12.49% in March 2022 to a stabilized plateau above 16% by late 2026. This trend indicates a consistent improvement in operational efficiency and an enhanced ability to convert net sales into operating income, despite significant seasonal fluctuations in absolute revenue and income figures.

Margin Expansion Phase: A period of steady margin growth is observed from March 2022 through March 2025. During this timeframe, the operating profit margin increased from 12.49% to a peak of 16.66%. This expansion was characterized by consistent incremental gains, suggesting successful cost optimization or strategic pricing adjustments that outpaced the growth of operating expenses.
Seasonality and Profitability Correlation: Net sales and operating income demonstrate a recurring seasonal pattern, with peaks typically occurring in the second and third quarters and troughs in the fourth and first quarters. However, the operating profit margin remained resilient against these volume swings. Notably, the margin often increased during lower-revenue quarters (such as the rise to 13.56% in December 2022 and 16.50% in December 2024), indicating strong fixed-cost management and a capacity to maintain profitability during off-peak periods.
Stabilization and Plateau: Following the peak in March 2025, the operating profit margin entered a stabilization phase. Between June 2025 and September 2026, the ratio fluctuated within a narrow band between 15.98% and 16.35%. This behavior suggests that the company reached a new efficiency equilibrium, where operating margins have leveled off after the aggressive expansion seen in the preceding three years.
Revenue and Income Scaling: While net sales showed a general upward trend—growing from approximately 5 billion USD in early 2022 to nearly 6.9 billion USD by September 2026—the operating income grew at a faster relative rate. This divergence is the primary driver behind the margin expansion, confirming that the business scaled its operations while simultaneously improving its underlying profitability structure.

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Sherwin-Williams Co., net profit margin 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 income	821,000)	843,600)	534,700)	476,800)	833,100)	754,700)	503,900)	480,100)	806,200)	889,900)	505,200)	356,200)	761,500)	793,700)	477,400)	386,300)	685,100)	577,900)	370,800)
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)
Profitability Ratio
Net profit margin¹	10.74%	11.01%	10.86%	10.90%	11.05%	11.03%	11.63%	11.61%	11.09%	10.92%	10.52%	10.36%	10.50%	10.20%	9.41%	9.12%	8.94%	8.45%	9.00%
Benchmarks
Net Profit Margin, Competitors²
Linde plc	19.34%	20.43%	20.44%	20.30%	21.17%	20.20%	20.02%	19.89%	19.33%	19.49%	19.26%	18.87%	18.44%	17.20%	13.46%	12.43%	11.39%	10.88%	12.66%

¹ Q3 2026 Calculation
Net profit margin = 100 × (Net income_{Q3 2026} + Net income_{Q2 2026} + Net income_{Q1 2026} + Net income_{Q4 2025}) ÷ (Net sales_{Q3 2026} + Net sales_{Q2 2026} + Net sales_{Q1 2026} + Net sales_{Q4 2025})
= 100 × (821,000 + 843,600 + 534,700 + 476,800) ÷ (6,860,000 + 6,789,300 + 5,666,900 + 5,595,900) = 10.74%

² Click competitor name to see calculations.

The net profit margin demonstrates a consistent upward trajectory over the observed period, transitioning from a baseline of approximately 9% in early 2022 to a sustained level above 10% from mid-2023 through 2026. This progression indicates an improvement in operational efficiency and bottom-line profitability relative to revenue generation.

Margin Expansion Trend: A steady increase in profitability is observed from March 2022, where the margin stood at 9.00%, reaching a peak of 11.63% by March 2025. A critical threshold was crossed in June 2023, after which the net profit margin remained consistently above 10% for the remainder of the analyzed timeframe.
Peak Performance and Stabilization: The highest levels of profitability were recorded between December 2024 and March 2025, with margins reaching 11.61% and 11.63%, respectively. Following this peak, the margin entered a stabilization phase, oscillating within a narrow band between 10.74% and 11.05% through 2026.
Seasonal Correlation: While net sales and net income exhibit significant quarterly volatility—typically peaking in the second and third quarters—the net profit margin remains relatively stable. This suggests that cost structures are well-aligned with seasonal revenue fluctuations, allowing the company to maintain its profit percentage regardless of the volume of sales.

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Sherwin-Williams Co., ROE 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 income	821,000)	843,600)	534,700)	476,800)	833,100)	754,700)	503,900)	480,100)	806,200)	889,900)	505,200)	356,200)	761,500)	793,700)	477,400)	386,300)	685,100)	577,900)	370,800)
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)
Profitability Ratio
ROE¹	67.29%	69.74%	58.66%	55.86%	58.12%	57.83%	64.89%	66.19%	61.54%	66.98%	68.97%	64.29%	63.99%	64.51%	67.16%	65.12%	74.59%	78.89%	81.71%
Benchmarks
ROE, Competitors²
Linde plc	17.77%	18.54%	18.36%	18.04%	18.37%	17.43%	17.38%	17.23%	16.29%	16.76%	16.25%	15.61%	15.38%	14.26%	11.23%	10.36%	10.22%	8.95%	9.36%

¹ Q3 2026 Calculation
ROE = 100 × (Net income_{Q3 2026} + Net income_{Q2 2026} + Net income_{Q1 2026} + Net income_{Q4 2025}) ÷ Shareholders’ equity
= 100 × (821,000 + 843,600 + 534,700 + 476,800) ÷ 3,976,700 = 67.29%

² Click competitor name to see calculations.

The analysis of profitability ratios reveals a general downward trajectory in return on equity (ROE) from the start of the observation period, although the ratio remains at a high level. Between March 31, 2022, and December 31, 2025, ROE declined from a peak of 81.71% to a low of 55.86%, before experiencing a recovery in the first half of 2026.

Equity Expansion and ROE Compression: A significant increase in shareholders' equity is observed, rising from 2,234,300 thousand US$ in March 2022 to a peak of 4,598,300 thousand US$ by December 2025. This expansion of the capital base acted as a primary driver for the compression of ROE, as the growth in net income did not scale at a rate sufficient to maintain the initial high percentage of return.
Net Income Seasonality: Net income exhibits a recurring quarterly cyclical pattern. Earnings typically peak in the second and third quarters—reaching a high of 889,900 thousand US$ in June 2024—and decline during the fourth and first quarters. This volatility in quarterly earnings results in short-term fluctuations in ROE, though these are secondary to the long-term trend of equity growth.
Capital Base Reduction and Ratio Recovery: A notable reversal in the ROE trend occurs in 2026. The ROE rose to 69.74% by June 30, 2026, coinciding with a reduction in shareholders' equity to 3,854,700 thousand US$ by March 31, 2026. The contraction of the equity base, combined with sustained net income levels, mathematically enhanced the return on equity during this period.

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Sherwin-Williams Co., ROA 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 income	821,000)	843,600)	534,700)	476,800)	833,100)	754,700)	503,900)	480,100)	806,200)	889,900)	505,200)	356,200)	761,500)	793,700)	477,400)	386,300)	685,100)	577,900)	370,800)
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)
Profitability Ratio
ROA¹	9.93%	9.97%	9.85%	9.92%	9.81%	10.03%	10.88%	11.35%	10.67%	10.59%	10.31%	10.41%	10.51%	10.11%	9.19%	8.94%	8.71%	7.96%	8.40%
Benchmarks
ROA, Competitors²
Linde plc	7.96%	8.20%	8.20%	7.95%	8.25%	7.80%	7.99%	8.19%	7.73%	7.98%	7.85%	7.67%	7.69%	7.23%	5.59%	5.21%	5.17%	4.56%	4.86%

¹ Q3 2026 Calculation
ROA = 100 × (Net income_{Q3 2026} + Net income_{Q2 2026} + Net income_{Q1 2026} + Net income_{Q4 2025}) ÷ Total assets
= 100 × (821,000 + 843,600 + 534,700 + 476,800) ÷ 26,961,400 = 9.93%

² Click competitor name to see calculations.

The financial performance from March 2022 through September 2026 is characterized by a steady expansion of the asset base and a general improvement in asset utilization efficiency, despite notable seasonal fluctuations in earnings.

Total Asset Expansion: A consistent upward trajectory in total assets is observed, increasing from $21.73 billion in March 2022 to $26.96 billion by September 2026. This growth indicates a sustained increase in the company's resource base over the observed period.
Net Income Cyclicality: Net income demonstrates significant quarterly volatility, exhibiting a recurring seasonal pattern. Earnings typically peak during the June and September quarters and decline during the December and March quarters. Despite this cyclicality, there is a general increase in the magnitude of peak quarterly earnings, reaching $843.6 million in June 2026.
Return on Assets (ROA) Dynamics: The ROA trend reveals an initial phase of improvement followed by a period of stabilization. From March 2022, the ratio climbed from 8.40%, reaching a peak of 11.35% in December 2024. Following this peak, the ROA entered a stabilization phase from March 2025 through September 2026, maintaining a range between 9.81% and 10.03%. This progression indicates that the company successfully scaled its profitability to maintain a higher return threshold than that observed in 2022, even as the total asset base expanded.

In summary, the transition from 2022 to 2026 reflects an overall enhancement in operational efficiency. The company shifted from an ROA baseline in the 8% range to a stabilized plateau near 10%, effectively managing the return on a significantly larger asset footprint.

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