Sherwin-Williams Co. (NYSE:SHW)

Gross Profit Margin

The gross profit margin exhibited a declining trend from March 31, 2021, starting at 47.29% and decreasing steadily to a low of 41.01% by September 30, 2022. Following this trough, there was a gradual recovery, with the margin rising to 48.87% by June 30, 2025. This pattern indicates an initial pressure on direct cost control or pricing, followed by improved efficiency or pricing power in later periods.

Operating Profit Margin

The operating profit margin showed a similar downward trend between March 31, 2021, and September 30, 2022, dropping from 15.58% to a low of 11.94%. After this point, the margin demonstrated a steady improvement, reaching 16.66% by December 31, 2024, before a slight decline to 15.98% by June 30, 2025. This suggests that operating expenses initially increased relative to revenues but were subsequently contained or reduced, enhancing operating profitability.

Net Profit Margin

Net profit margin followed a pattern resembling the operating margin, with a decline from 11.06% at March 31, 2021, to 8.45% on September 30, 2022. Afterward, the margin showed a consistent upward trend, peaking at 11.63% by June 30, 2025, before a slight decrease to 11.03%. This progression reflects fluctuations in overall profitability influenced by costs, taxes, interest, or other non-operating factors and a subsequent recovery in bottom-line performance.

Return on Equity (ROE)

ROE showed considerable volatility over the analyzed period. It increased from 56.23% at March 31, 2021, to a peak of 81.71% on June 30, 2022, followed by a gradual decline to 57.83% at June 30, 2025. Despite the later decline, the ROE remained generally elevated, indicating that shareholder value generation was strong overall but subject to fluctuations likely tied to earnings variation and equity changes.

Return on Assets (ROA)

ROA displayed a more stable pattern with modest fluctuations. It rose from 9.95% at March 31, 2021, to about 10.58% by September 30, 2021, declined slightly afterward to 7.96% by September 30, 2022, then rebounded to a peak of 11.35% at March 31, 2025. By June 30, 2025, it slightly decreased to 10.03%. This indicates the company maintained relatively efficient asset utilization, with some periods of decreased asset productivity followed by recovery.

Gross Profit

The gross profit exhibited noticeable fluctuations over the presented periods. Initial values in early 2020 showed a steady increase, peaking around the third quarter of 2020. Subsequently, a decline occurred towards the end of 2020, followed by an irregular pattern with some quarters experiencing strong rebounds, especially mid-2023. Towards the latter part of the timeline, gross profit values generally trended upwards, reaching higher figures compared to the earlier years, with occasional quarter-over-quarter declines.

Net Sales

Net sales showed a significant upward trend from the start of 2020 to mid-2022, reaching some of the highest values during this span. After peaking in mid-2022, net sales slightly decreased but remained relatively elevated as compared to earlier periods. The data presents a repeated pattern of increases and slight drops, particularly evident in late 2023 and early 2024, but the overall tendency indicates growth with peaks coinciding often with increased gross profit.

Gross Profit Margin

The gross profit margin, expressed as a percentage, was missing for the initial quarters in early 2020 but was recorded starting in the first quarter of 2021. From that point, the margin demonstrated a steady upward trend over the periods analyzed. Beginning at around 44.69% in late 2020, it progressively improved, reaching close to 48.87% by mid-2025. This improvement suggests enhanced efficiency in cost control or pricing strategies, contributing to a larger proportion of profit retained from sales.

Overall Trends and Insights

The relationship between gross profit and net sales indicates that while both metrics experienced fluctuations, gross profit grew at a rate that improved the profit margin substantially, especially in the latter part of the timeline. This suggests successful management of costs relative to sales. The periods of decline in gross profit and sales were relatively short-lived, with recovery following in subsequent quarters. The rising gross profit margin confirms a positive trend in profitability, pointing to either improved operational efficiencies or favorable pricing power over time.

The operating income exhibits notable fluctuations over the reported periods. Initially, it starts at 500,300 thousand US dollars in March 2020, sharply increasing to a peak of 959,300 thousand US dollars in September 2020. Following this peak, there is a general decline through December 2020, with a rebound observed in the mid-2021 quarters, reaching a secondary peak of 1,110,800 thousand US dollars in June 2023. The income then fluctuates, showing another peak of 1,251,300 thousand US dollars in September 2024 before decreasing again towards the end of the timeline. This pattern indicates periods of strong profitability interspersed with quarters of lower operating income, suggesting variability in operational performance or external market conditions.

Net sales demonstrate a progressive upward trend overall, beginning at 4,146,700 thousand US dollars in March 2020. There is a steady increase through 2020 and 2021, culminating in a peak of 6,241,600 thousand US dollars in June 2023. Although occasional declines occur, these are typically followed by rebounds, maintaining an overall growth trajectory with a peak of 6,314,500 thousand US dollars noted in June 2025. The data suggests sustained growth in sales revenue over the examined timeframe, indicative of expanding market reach or increased product demand.

Operating profit margins are only available from December 2020 onward and reveal a consistent improvement in operational efficiency over time. Starting at 15.58%, margins experience minor fluctuations but trend upward, reaching a high of 16.66% in June 2025 before slightly declining to 15.98% in the last reported period. This steady margin enhancement reflects an improved ability to convert sales into operating profit, potentially driven by cost management, pricing strategies, or product mix optimization.

Operating Income

Exhibits significant volatility with multiple peaks and troughs ranging approximately between 370,000 and 1,250,000 thousand US dollars, pointing to fluctuating operational effectiveness or market conditions.

Net Sales

Shows a clear upward trend over the examined periods, increasing from approximately 4.15 billion US dollars to over 6.3 billion US dollars, indicating revenue growth and possibly expanding market presence.

Operating Profit Margin

Maintains an overall ascending trend starting from mid-teens percentages, peaking above 16% before a slight dip, which indicates improving profitability from sales over time despite some quarter-to-quarter variation.

Net Income Trends

The net income values exhibit a generally cyclical pattern with notable fluctuations across quarters. Starting from $321.7 million in March 2020, the net income peaked at $705.8 million in September 2020 before experiencing a significant drop to $304 million by December 2021. Subsequently, there was a recovery and a higher peak at $793.7 million in June 2023, followed again by declines and partial rebounds thereafter. Overall, the data reflects variable quarterly performance with periodic highs around mid-year and lows towards year-end in some years.

Net Sales Patterns

Net sales demonstrate a consistent upward trajectory with seasonal variations. From approximately $4.15 billion in March 2020, sales rose steadily to surpass $6.3 billion by June 2024 and September 2024, maintaining above $5.2 billion in the early quarters of 2025. The growth in sales is marked by increases primarily in mid-year quarters, suggesting cyclical demand or industry seasonality. Despite fluctuations, the trend indicates solid expansion in sales volumes or pricing over the five-year horizon.

Net Profit Margin Analysis

The net profit margin data, available from March 2021 onward, shows a relatively stable profitability percentage, with values ranging from approximately 8.45% to about 11.63%. There is a slight upward trend in net profit margin over time, improving from around 9% in early 2021 to consistently above 11% by mid-2024 and mid-2025. This suggests improved cost management, pricing power, or operational efficiencies despite the fluctuations in net income levels.

Overall Observations

The combination of steady sales growth and a rising net profit margin implies enhanced overall financial health. However, the volatility in net income suggests sensitivity to certain costs, market conditions, or extraordinary items affecting quarterly profitability. The periodic fluctuations in net income, contrasted with a more stable profit margin, might indicate that while operational profitability per unit of sales is improving, absolute income is subject to cyclical or external influences. Continuous sales growth alongside improving margins is indicative of strengthening business fundamentals over the analyzed timeframe.

The financial performance reveals significant fluctuations in net income over the observed periods, displaying both growth phases and contractions. Initially, net income rose markedly from 321,700 thousand US dollars at the end of March 2020 to a peak of 705,800 thousand US dollars by September 2020, followed by a notable decline to 304,000 thousand US dollars by December 2021. Subsequently, a recovery phase occurred, reaching 793,700 thousand US dollars in June 2023, before exhibiting volatility with decreases and increases through to June 2025, where the figure settled at 754,700 thousand US dollars.

Shareholders’ equity shows a generally decreasing trend from March 2020, starting at 3,289,100 thousand US dollars and falling to a low of approximately 2,234,300 thousand US dollars by March 2022. After this trough, equity values demonstrate a recovery and upward trajectory, culminating at 4,400,900 thousand US dollars by June 2025. This rebound suggests an improvement in the company's net asset position during the latter periods, despite the intermittent declines.

Return on equity (ROE) data, available from March 2021 onwards, indicates relatively high profitability with values predominantly ranging from the mid-60s to low 80s percent. The ROE peaked at 81.71% in June 2022, reflecting strong efficiency in generating profits from shareholders' investments during that period. However, a gradual decline is observed following the peak, moving towards 57.83% by June 2025. Although still indicating solid returns, this downward trend may imply increasing challenges in maintaining prior profitability levels.

Net Income Trend

Initial sharp increase between Q1 2020 and Q3 2020, followed by volatility with notable declines and partial recoveries through to mid-2025.

Shareholders’ Equity Movement

Significant reduction from early 2020 through early 2022, then a sustained recovery leading to the highest values recorded at mid-2025.

Return on Equity (ROE) Patterns

High profitability observed from March 2021, peaking mid-2022, followed by a softening trend toward mid-2025, suggesting a potential decrease in effectiveness of equity utilization.

Overall Insights

The company experienced financial stress during early periods, marked by declining equity and fluctuating income but showed signs of recovery in equity and earnings capacity in more recent quarters. The high ROE indicates strong profitability, although a declining trend could signal the need to monitor operational efficiency carefully going forward.

The financial data reveals several notable trends over the analyzed periods. Net income exhibits variability across quarters with some marked peaks and troughs. Starting from a lower point in March 2020, net income experienced a significant increase in the subsequent quarters of 2020, reaching a peak in September 2020. Following this, a decline was observed through the end of 2020. Throughout 2021 and 2022, net income showed a repeating cyclical pattern with notable highs in mid-year quarters and declines at year-end quarters. In 2023, net income increased sharply, reaching elevated levels in mid-year before a substantial decrease in the final quarter. The trend from 2024 into the first half of 2025 indicates fluctuations with a general inclination towards higher net incomes in most mid-year quarters compared to the year-end quarters.

Total assets demonstrate a consistent upward trajectory over the entire analyzed period. Beginning at just over 20.5 billion USD in early 2020, the figures steadily increase with minor fluctuations, reaching beyond 25 billion USD by mid-2025. This steady growth in asset base suggests ongoing investment or accumulation of resources, supporting potential expansion or stability in the company’s financial position.

Return on assets (ROA) data, available starting from March 2021, illustrates a relatively stable profitability ratio measuring income generated relative to total assets. The ROA hovers near 10% throughout the observed quarters, with minor variations ranging roughly between 7.96% and 11.35%. This indicates consistent efficiency in asset utilization to generate profit. Notably, ROA peaks are often aligned with the quarters showing higher net income, reinforcing the connection between profitability and efficient asset use.

Net Income

Exhibits cyclical quarterly fluctuations with peaks typically occurring in mid-year quarters and declines in year-end quarters. Overall, there is an upward trend in peak values over the observed timeframe.

Total Assets

Shows steady growth from approximately 20.5 billion USD to above 25 billion USD over five years, indicating ongoing asset accumulation and potentially enhanced operational capacity.

Return on Assets (ROA)

Maintains a stable range around 10%, reflecting consistent effectiveness in using assets to generate earnings. Some quarterly variation corresponds with net income fluctuations but lacks a clear trend of increase or decrease.

Overall, the data suggests a pattern of seasonal variations affecting profitability, coupled with consistent asset growth driven by strategic asset management. The combination of these factors points to a stable operating performance with recurring cyclical influences and a gradually expanding asset base supporting ongoing business activities.