Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

This company has been moved to the archive! The financial data has not been updated since July 27, 2022.

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Sherwin-Williams Co., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 5.92 5.37 5.22 5.57 4.55
Receivables turnover 8.48 8.84 8.57 8.69 7.12
Payables turnover 4.74 4.57 5.26 5.62 4.58
Working capital turnover 163.03 375.15 31.30
Average No. Days
Average inventory processing period 62 68 70 65 80
Add: Average receivable collection period 43 41 43 42 51
Operating cycle 105 109 113 107 131
Less: Average payables payment period 77 80 69 65 80
Cash conversion cycle 28 29 44 42 51

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

Sherwin-Williams Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
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

Sherwin-Williams Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
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

Sherwin-Williams Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel
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

Sherwin-Williams Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
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

Sherwin-Williams Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
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

Sherwin-Williams Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
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

Sherwin-Williams Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
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

Sherwin-Williams Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
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

Sherwin-Williams Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
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 + 4377 = 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.