Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Short-term activity ratio | Description | The company |
---|---|---|
Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Sherwin-Williams Co. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Receivables turnover | An activity ratio equal to revenue divided by receivables. | Sherwin-Williams Co. receivables turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Sherwin-Williams Co. payables turnover ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021. |
Short-term activity ratio | Description | The company |
---|---|---|
Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Sherwin-Williams Co. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021. |
Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Sherwin-Williams Co. operating cycle improved from 2019 to 2020 and from 2020 to 2021. |
Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Sherwin-Williams Co. number of days of payables outstanding increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Sherwin-Williams Co. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Cost of goods sold | 11,401,900) | 9,679,100) | 9,864,700) | 10,115,931) | 8,202,577) | |
Inventories | 1,927,200) | 1,804,100) | 1,889,600) | 1,815,275) | 1,801,375) | |
Short-term Activity Ratio | ||||||
Inventory turnover1 | 5.92 | 5.37 | 5.22 | 5.57 | 4.55 | |
Benchmarks | ||||||
Inventory Turnover, Competitors2 | ||||||
Linde plc | 10.12 | 8.90 | 9.81 | — | — | |
Inventory Turnover, Industry | ||||||
Materials | 5.17 | 4.87 | 5.15 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 11,401,900 ÷ 1,927,200 = 5.92
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Sherwin-Williams Co. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Net sales | 19,944,600) | 18,361,700) | 17,900,800) | 17,534,493) | 14,983,788) | |
Accounts receivable, less allowance | 2,352,400) | 2,078,100) | 2,088,900) | 2,018,768) | 2,104,555) | |
Short-term Activity Ratio | ||||||
Receivables turnover1 | 8.48 | 8.84 | 8.57 | 8.69 | 7.12 | |
Benchmarks | ||||||
Receivables Turnover, Competitors2 | ||||||
Linde plc | 6.84 | 6.54 | 6.53 | — | — | |
Receivables Turnover, Industry | ||||||
Materials | 10.97 | 9.61 | 9.63 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, less allowance
= 19,944,600 ÷ 2,352,400 = 8.48
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Receivables turnover | An activity ratio equal to revenue divided by receivables. | Sherwin-Williams Co. receivables turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Payables Turnover
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Cost of goods sold | 11,401,900) | 9,679,100) | 9,864,700) | 10,115,931) | 8,202,577) | |
Accounts payable | 2,403,000) | 2,117,800) | 1,876,300) | 1,799,424) | 1,791,552) | |
Short-term Activity Ratio | ||||||
Payables turnover1 | 4.74 | 4.57 | 5.26 | 5.62 | 4.58 | |
Benchmarks | ||||||
Payables Turnover, Competitors2 | ||||||
Linde plc | 5.01 | 4.97 | 5.10 | — | — | |
Payables Turnover, Industry | ||||||
Materials | 6.11 | 6.33 | 6.40 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 11,401,900 ÷ 2,403,000 = 4.74
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Sherwin-Williams Co. payables turnover ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021. |
Working Capital Turnover
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Current assets | 5,053,700) | 4,591,400) | 4,631,700) | 4,344,487) | 4,465,840) | |
Less: Current liabilities | 5,719,500) | 4,594,400) | 4,521,900) | 4,297,747) | 3,987,180) | |
Working capital | (665,800) | (3,000) | 109,800) | 46,740) | 478,660) | |
Net sales | 19,944,600) | 18,361,700) | 17,900,800) | 17,534,493) | 14,983,788) | |
Short-term Activity Ratio | ||||||
Working capital turnover1 | — | — | 163.03 | 375.15 | 31.30 | |
Benchmarks | ||||||
Working Capital Turnover, Competitors2 | ||||||
Linde plc | — | — | — | — | — | |
Working Capital Turnover, Industry | ||||||
Materials | 6.27 | 6.45 | 7.72 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Working capital turnover = Net sales ÷ Working capital
= 19,944,600 ÷ -665,800 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Inventory turnover | 5.92 | 5.37 | 5.22 | 5.57 | 4.55 | |
Short-term Activity Ratio (no. days) | ||||||
Average inventory processing period1 | 62 | 68 | 70 | 65 | 80 | |
Benchmarks (no. days) | ||||||
Average Inventory Processing Period, Competitors2 | ||||||
Linde plc | 36 | 41 | 37 | — | — | |
Average Inventory Processing Period, Industry | ||||||
Materials | 71 | 75 | 71 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.92 = 62
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Sherwin-Williams Co. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Receivables turnover | 8.48 | 8.84 | 8.57 | 8.69 | 7.12 | |
Short-term Activity Ratio (no. days) | ||||||
Average receivable collection period1 | 43 | 41 | 43 | 42 | 51 | |
Benchmarks (no. days) | ||||||
Average Receivable Collection Period, Competitors2 | ||||||
Linde plc | 53 | 56 | 56 | — | — | |
Average Receivable Collection Period, Industry | ||||||
Materials | 33 | 38 | 38 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.48 = 43
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Average inventory processing period | 62 | 68 | 70 | 65 | 80 | |
Average receivable collection period | 43 | 41 | 43 | 42 | 51 | |
Short-term Activity Ratio | ||||||
Operating cycle1 | 105 | 109 | 113 | 107 | 131 | |
Benchmarks | ||||||
Operating Cycle, Competitors2 | ||||||
Linde plc | 89 | 97 | 93 | — | — | |
Operating Cycle, Industry | ||||||
Materials | 104 | 113 | 109 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 62 + 43 = 105
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Sherwin-Williams Co. operating cycle improved from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Payables turnover | 4.74 | 4.57 | 5.26 | 5.62 | 4.58 | |
Short-term Activity Ratio (no. days) | ||||||
Average payables payment period1 | 77 | 80 | 69 | 65 | 80 | |
Benchmarks (no. days) | ||||||
Average Payables Payment Period, Competitors2 | ||||||
Linde plc | 73 | 73 | 72 | — | — | |
Average Payables Payment Period, Industry | ||||||
Materials | 60 | 58 | 57 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.74 = 77
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Sherwin-Williams Co. number of days of payables outstanding increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
Cash Conversion Cycle
Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data | ||||||
Average inventory processing period | 62 | 68 | 70 | 65 | 80 | |
Average receivable collection period | 43 | 41 | 43 | 42 | 51 | |
Average payables payment period | 77 | 80 | 69 | 65 | 80 | |
Short-term Activity Ratio | ||||||
Cash conversion cycle1 | 28 | 29 | 44 | 42 | 51 | |
Benchmarks | ||||||
Cash Conversion Cycle, Competitors2 | ||||||
Linde plc | 16 | 24 | 21 | — | — | |
Cash Conversion Cycle, Industry | ||||||
Materials | 44 | 55 | 52 | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 62 + 43 – 77 = 28
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Sherwin-Williams Co. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |