Stock Analysis on Net
Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

Analysis of Profitability Ratios
Quarterly Data

Beginner level

Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).


Profitability Ratios (Summary)

Sherwin-Williams Co., profitability ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Return on Sales
Gross profit margin 46.97% 46.34% 45.49% 44.89% 43.83% 42.96% 42.40% 42.31% 43.18% 43.11% 44.01% 45.26% 46.21% 48.61% 49.86% 49.96% 50.15% 50.17% 49.63% 49.03%
Operating profit margin 14.56% 13.82% 13.19% 12.78% 12.25% 11.52% 10.82% 10.71% 11.64% 10.99% 11.27% 11.79% 12.60% 14.38% 15.15% 14.67% 14.70% 14.81% 14.41% 14.25%
Net profit margin 10.41% 9.83% 8.98% 8.61% 7.81% 6.61% 6.27% 6.32% 10.92% 10.84% 11.02% 11.83% 7.82% 9.14% 10.02% 9.55% 9.66% 9.66% 9.49% 9.29%
Return on Investment
Return on equity (ROE) 44.49% 45.03% 49.19% 37.38% 34.64% 31.25% 31.90% 29.72% 47.93% 49.84% 48.33% 48.00% 39.33% 48.01% 58.44% 60.30% 70.58% 89.48% 108.64% 121.42%
Return on assets (ROA) 9.00% 8.50% 7.86% 7.52% 6.68% 5.53% 5.27% 5.79% 9.53% 9.27% 8.76% 8.88% 5.19% 5.54% 17.27% 16.77% 16.30% 16.73% 18.01% 18.20%

Based on: 10-Q (filing date: 2020-10-27), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-22), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-21), 10-K (filing date: 2017-02-22), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Sherwin-Williams Co.’s gross profit margin ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Sherwin-Williams Co.’s operating profit margin ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Sherwin-Williams Co.’s net profit margin ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Sherwin-Williams Co.’s ROE deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
ROA A profitability ratio calculated as net income divided by total assets. Sherwin-Williams Co.’s ROA improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Gross Profit Margin

Sherwin-Williams Co., gross profit margin calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Gross profit 2,455,300  2,208,900  1,889,700  1,894,034  2,225,554  2,181,435  1,735,077  1,682,683  2,010,404  2,038,628  1,686,847  1,798,739  1,902,142  1,737,056  1,343,274  1,388,580  1,636,425  1,635,901  1,261,845  1,322,239  1,574,552  1,529,986  1,132,449 
Net sales 5,122,200  4,604,000  4,146,700  4,114,429  4,867,650  4,877,860  4,040,861  4,064,221  4,731,470  4,773,796  3,965,006  3,979,564  4,507,020  3,735,817  2,761,387  2,782,591  3,279,462  3,219,525  2,574,024  2,604,596  3,152,285  3,132,139  2,450,284 
Profitability Ratio
Gross profit margin1 46.97% 46.34% 45.49% 44.89% 43.83% 42.96% 42.40% 42.31% 43.18% 43.11% 44.01% 45.26% 46.21% 48.61% 49.86% 49.96% 50.15% 50.17% 49.63% 49.03%

Based on: 10-Q (filing date: 2020-10-27), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-22), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-21), 10-K (filing date: 2017-02-22), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

1 Q3 2020 Calculation
Gross profit margin = 100 × (Gross profitQ3 2020 + Gross profitQ2 2020 + Gross profitQ1 2020 + Gross profitQ4 2019) ÷ (Net salesQ3 2020 + Net salesQ2 2020 + Net salesQ1 2020 + Net salesQ4 2019)
= 100 × (2,455,300 + 2,208,900 + 1,889,700 + 1,894,034) ÷ (5,122,200 + 4,604,000 + 4,146,700 + 4,114,429) = 46.97%

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Sherwin-Williams Co.’s gross profit margin ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Operating Profit Margin

Sherwin-Williams Co., operating profit margin calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Operating income 959,300  841,300  500,300  318,706  790,803  764,944  412,747  217,675  645,735  629,895  384,243  370,420  508,201  560,871  326,653  341,502  577,348  579,088  241,836  317,914  571,810  520,791  204,925 
Net sales 5,122,200  4,604,000  4,146,700  4,114,429  4,867,650  4,877,860  4,040,861  4,064,221  4,731,470  4,773,796  3,965,006  3,979,564  4,507,020  3,735,817  2,761,387  2,782,591  3,279,462  3,219,525  2,574,024  2,604,596  3,152,285  3,132,139  2,450,284 
Profitability Ratio
Operating profit margin1 14.56% 13.82% 13.19% 12.78% 12.25% 11.52% 10.82% 10.71% 11.64% 10.99% 11.27% 11.79% 12.60% 14.38% 15.15% 14.67% 14.70% 14.81% 14.41% 14.25%

Based on: 10-Q (filing date: 2020-10-27), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-22), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-21), 10-K (filing date: 2017-02-22), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

1 Q3 2020 Calculation
Operating profit margin = 100 × (Operating incomeQ3 2020 + Operating incomeQ2 2020 + Operating incomeQ1 2020 + Operating incomeQ4 2019) ÷ (Net salesQ3 2020 + Net salesQ2 2020 + Net salesQ1 2020 + Net salesQ4 2019)
= 100 × (959,300 + 841,300 + 500,300 + 318,706) ÷ (5,122,200 + 4,604,000 + 4,146,700 + 4,114,429) = 14.56%

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Sherwin-Williams Co.’s operating profit margin ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Net Profit Margin

Sherwin-Williams Co., net profit margin calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Net income 705,800  595,900  321,700  248,622  576,438  471,003  245,237  100,988  354,027  403,604  250,127  897,393  316,606  319,111  239,152  203,030  386,733  378,064  164,876  198,017  374,491  349,937  131,404 
Net sales 5,122,200  4,604,000  4,146,700  4,114,429  4,867,650  4,877,860  4,040,861  4,064,221  4,731,470  4,773,796  3,965,006  3,979,564  4,507,020  3,735,817  2,761,387  2,782,591  3,279,462  3,219,525  2,574,024  2,604,596  3,152,285  3,132,139  2,450,284 
Profitability Ratio
Net profit margin1 10.41% 9.83% 8.98% 8.61% 7.81% 6.61% 6.27% 6.32% 10.92% 10.84% 11.02% 11.83% 7.82% 9.14% 10.02% 9.55% 9.66% 9.66% 9.49% 9.29%

Based on: 10-Q (filing date: 2020-10-27), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-22), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-21), 10-K (filing date: 2017-02-22), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

1 Q3 2020 Calculation
Net profit margin = 100 × (Net incomeQ3 2020 + Net incomeQ2 2020 + Net incomeQ1 2020 + Net incomeQ4 2019) ÷ (Net salesQ3 2020 + Net salesQ2 2020 + Net salesQ1 2020 + Net salesQ4 2019)
= 100 × (705,800 + 595,900 + 321,700 + 248,622) ÷ (5,122,200 + 4,604,000 + 4,146,700 + 4,114,429) = 10.41%

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Sherwin-Williams Co.’s net profit margin ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Return on Equity (ROE)

Sherwin-Williams Co., ROE calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Net income 705,800  595,900  321,700  248,622  576,438  471,003  245,237  100,988  354,027  403,604  250,127  897,393  316,606  319,111  239,152  203,030  386,733  378,064  164,876  198,017  374,491  349,937  131,404 
Shareholders’ equity 4,207,300  3,869,900  3,289,100  4,123,300  4,022,860  3,747,482  3,460,061  3,730,745  3,974,839  3,747,089  3,690,046  3,692,188  2,740,989  2,391,260  2,065,350  1,878,441  1,597,783  1,246,629  1,000,823  867,910  976,165  757,342  469,172 
Profitability Ratio
ROE1 44.49% 45.03% 49.19% 37.38% 34.64% 31.25% 31.90% 29.72% 47.93% 49.84% 48.33% 48.00% 39.33% 48.01% 58.44% 60.30% 70.58% 89.48% 108.64% 121.42%

Based on: 10-Q (filing date: 2020-10-27), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-22), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-21), 10-K (filing date: 2017-02-22), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

1 Q3 2020 Calculation
ROE = 100 × (Net incomeQ3 2020 + Net incomeQ2 2020 + Net incomeQ1 2020 + Net incomeQ4 2019) ÷ Shareholders’ equity
= 100 × (705,800 + 595,900 + 321,700 + 248,622) ÷ 4,207,300 = 44.49%

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Sherwin-Williams Co.’s ROE deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Return on Assets (ROA)

Sherwin-Williams Co., ROA calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Net income 705,800  595,900  321,700  248,622  576,438  471,003  245,237  100,988  354,027  403,604  250,127  897,393  316,606  319,111  239,152  203,030  386,733  378,064  164,876  198,017  374,491  349,937  131,404 
Total assets 20,809,700  20,494,500  20,570,300  20,496,200  20,864,339  21,186,136  20,961,641  19,134,279  19,980,696  20,154,732  20,367,686  19,958,427  20,779,657  20,717,398  6,988,903  6,752,521  6,917,771  6,665,677  6,038,309  5,791,855  6,102,023  6,134,664  5,859,250 
Profitability Ratio
ROA1 9.00% 8.50% 7.86% 7.52% 6.68% 5.53% 5.27% 5.79% 9.53% 9.27% 8.76% 8.88% 5.19% 5.54% 17.27% 16.77% 16.30% 16.73% 18.01% 18.20%

Based on: 10-Q (filing date: 2020-10-27), 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-22), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-21), 10-K (filing date: 2017-02-22), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

1 Q3 2020 Calculation
ROA = 100 × (Net incomeQ3 2020 + Net incomeQ2 2020 + Net incomeQ1 2020 + Net incomeQ4 2019) ÷ Total assets
= 100 × (705,800 + 595,900 + 321,700 + 248,622) ÷ 20,809,700 = 9.00%

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Sherwin-Williams Co.’s ROA improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.