Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

$24.99

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

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Short-term Activity Ratios (Summary)

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

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Turnover Ratios
Inventory turnover
Receivables turnover
Payables turnover
Working capital turnover
Average No. Days
Average inventory processing period
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period
Cash conversion cycle

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).


Inventory Turnover
The inventory turnover displayed a moderate upward trend from March 2020 through December 2021, peaking near 5.99 in late 2021. Following this peak, it gradually declined through 2022, reaching its lowest at around 4.7 by mid-2025. This suggests an improvement in inventory efficiency initially, followed by a gradual slowdown in inventory movement over time.
Receivables Turnover
Receivables turnover showed fluctuations throughout the period. Starting from approximately 8.84 in early 2020, it declined peaking around 7.36 in late 2021, then rebounded in early 2022 and again fluctuated between 7.3 and 9.7 in subsequent periods. This variability reflects inconsistent efficiency in collecting receivables, with occasional improvements but no clear sustained trend.
Payables Turnover
The payables turnover ratio maintained relative stability initially, hovering around 4.5 to 4.7 until late 2021. Subsequently, it improved, reaching a higher turnover near 5.3 in 2022 and early 2023, indicating faster payment cycles. However, it slightly declined towards 4.7 by mid-2025, which signals a return to longer payment periods.
Working Capital Turnover
Working capital turnover figures were sparse but demonstrated a considerable increase from approximately 1022.67 to 1996.6 at unspecified points, indicative of a significant rise in sales relative to working capital during the periods reported. This suggests improved utilization of working capital resources.
Average Inventory Processing Period
The average inventory processing period initially decreased from 68 days in early 2020 to around 61 days by the end of 2020. However, from 2021 onward, it gradually increased, peaking at 78 days by early 2025. This elongation points to slowing inventory turnover and potentially greater inventory holding times.
Average Receivable Collection Period
The receivable collection period exhibited fluctuations with a general trend of increase from approximately 41 days in early 2020 up to around 52 days in late 2021 and 2022. Later periods showed some decrease but again rose, reaching near 49 days by mid-2025. This pattern suggests variable efficiency in receivables collection, sometimes elongating the cash inflow cycle.
Operating Cycle
The operating cycle varied between 105 and 126 days across the given periods. It reportedly peaked in the range of 122 to 126 days during 2022 through 2024, indicative of lengthier combined inventory and receivables processing times in later periods.
Average Payables Payment Period
The average payables payment period generally oscillated from around 70 to 90 days with some reductions to the upper 60s in certain quarters. The slight shortening in early 2022 contrasts with longer payment durations observed earlier, implying changes in the company's payment policies or supplier negotiation terms over time.
Cash Conversion Cycle
The cash conversion cycle ranged from 19 days up to 53 days, showing an increasing trend toward the later periods. Earlier lows near 19 to 28 days indicate efficient cash flow management, but rising values into the 40s and 50s from 2022 onward point to lengthening of the time between cash outlays and cash inflows, which could imply tightening liquidity or operational delays.

Turnover Ratios


Average No. Days


Inventory Turnover

Sherwin-Williams Co., inventory turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Cost of goods sold
Inventories
Short-term Activity Ratio
Inventory turnover1
Benchmarks
Inventory Turnover, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Inventory turnover = (Cost of goods soldQ2 2025 + Cost of goods soldQ1 2025 + Cost of goods soldQ4 2024 + Cost of goods soldQ3 2024) ÷ Inventories
= ( + + + ) ÷ =

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals several notable trends in the cost of goods sold (COGS), inventories, and inventory turnover ratios over the observed periods.

Cost of Goods Sold (COGS)
The COGS exhibited a generally increasing trend from early 2020 through mid-2022, peaking at 3,458,000 thousand US dollars in the third quarter of 2022. Subsequently, there was a decline toward the end of 2022 and early 2023. Notably, fluctuations were observed across quarters, with the highest value in mid-2022 and some decreases in late 2023 and early 2024. Overall, the COGS appears somewhat cyclical, with a pattern of rising over consecutive quarters before experiencing downward corrections.
Inventories
Inventories initially decreased from 1,954,800 thousand US dollars in the first quarter of 2020 to a low in the third quarter of 2020 (1,672,800 thousand US dollars), followed by a steady increase through the end of 2022, reaching a peak of 2,627,500 thousand US dollars. In 2023, inventories showed some volatility with increases and decreases, including a notable peak of 2,707,800 thousand US dollars in the first quarter and a decline in mid-2023. The more recent data from 2024 indicates a relatively stable inventory level fluctuating around 2,300,000 to 2,500,000 thousand US dollars range, suggesting stabilization after prior growth.
Inventory Turnover Ratio
The inventory turnover ratio, available from March 31, 2020 onwards, shows a rising trend initially, increasing from 5.37 to a peak of 5.99 in December 2020. Following this peak, a gradual decline characterizes the next several quarters, hitting a low of approximately 4.70 in June 2025. This decreasing trend in turnover ratio suggests that inventory was turning over less frequently in recent years compared to the early 2020 peak, possibly indicating slower sales or increased inventory holdings relative to COGS over time.

In summary, the data suggests that while the cost of goods sold and inventories have generally increased with some fluctuation over the period, the efficiency of inventory management as reflected by turnover ratios has declined somewhat after peaking in late 2020. This could imply longer holding periods of inventory or changes in sales dynamics that may warrant further investigation. The stabilization of inventory values in the later periods may reflect adjustments made in response to these changes.


Receivables Turnover

Sherwin-Williams Co., receivables turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Net sales
Accounts receivable, net
Short-term Activity Ratio
Receivables turnover1
Benchmarks
Receivables Turnover, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Receivables turnover = (Net salesQ2 2025 + Net salesQ1 2025 + Net salesQ4 2024 + Net salesQ3 2024) ÷ Accounts receivable, net
= ( + + + ) ÷ =

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals notable trends and fluctuations in the company's net sales, accounts receivable, and receivables turnover over the examined periods.

Net Sales
Net sales exhibited an overall upward trend from March 2020 through June 2025, with several instances of volatility. Starting at approximately 4.15 billion USD in March 2020, net sales increased significantly, peaking multiple times notably in June 2022 (around 5.87 billion USD) and June 2025 (around 6.31 billion USD). Despite occasional dips, such as at the end of 2020 and again in early 2024, the general trajectory shows growth. Fluctuations appear somewhat seasonal, with some quarters demonstrating stronger sales than others.
Accounts Receivable, Net
Accounts receivable also showed an increasing trend, rising from about 2.29 billion USD in March 2020 to a peak near 3.12 billion USD by June and September 2025. There were periods of distinctive growth, particularly between early 2021 and late 2022, followed by some declines and stabilization. Seasonal fluctuations are perceptible, with certain quarters, especially mid-year, recording higher receivable balances possibly due to increased sales activity or longer collection periods.
Receivables Turnover Ratio
The receivables turnover ratio data begins from the quarter ending March 31, 2020, and illustrates a fluctuating but generally declining efficiency in collecting receivables over time. Initial values started around 8.84 and showed decreases to figures as low as 6.97 during late 2021 to early 2022. Subsequently, the turnover ratio experienced intermittent increases, such as reaching 9.67 in March 2025, suggesting periods of improved collection efficiency. However, the ratio's variability indicates ongoing challenges in maintaining consistent receivable management efficiency amid changes in sales and credit terms.

Payables Turnover

Sherwin-Williams Co., payables turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Cost of goods sold
Accounts payable
Short-term Activity Ratio
Payables turnover1
Benchmarks
Payables Turnover, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Payables turnover = (Cost of goods soldQ2 2025 + Cost of goods soldQ1 2025 + Cost of goods soldQ4 2024 + Cost of goods soldQ3 2024) ÷ Accounts payable
= ( + + + ) ÷ =

2 Click competitor name to see calculations.


Cost of Goods Sold
The cost of goods sold generally demonstrates a volatile pattern over the observed quarters. Starting from approximately 2,257,000 thousand USD in the first quarter of 2020, there is an initial increase that peaks around the third quarter of 2020 at approximately 2,667,000 thousand USD. Subsequently, a decline is noted at the end of 2020. The trend then rises steadily, reaching a higher peak in the second and third quarters of 2022 with values close to 3,458,000 thousand USD and 3,423,300 thousand USD, respectively. In the periods following, the cost of goods sold decreases notably toward the end of 2023 before rising again in 2024 and 2025, although remaining somewhat below the 2022 peaks. This pattern indicates periods of fluctuating production or procurement costs, potentially influenced by market or operational factors.
Accounts Payable
Accounts payable exhibit a fluctuating but generally ascending trend, starting near 1,958,400 thousand USD in early 2020. The figures increase to a peak approaching 2,675,400 thousand USD in the third quarter of 2021. Thereafter, there is a marked decline through the end of 2022 to approximately 2,436,500 thousand USD, followed by a stabilization and a slight rise in 2023. The values then display moderate oscillations but maintain a range between 2,313,000 and 2,579,000 thousand USD in 2024 and mid-2025. This behavior suggests changes in credit terms or purchasing activities that may correlate with business cycles or supplier relationships.
Payables Turnover Ratio
The payables turnover ratio is recorded only from the first quarter of 2020 onward. The ratio starts at 4.57 and exhibits a slight downward trend until late 2021, with values decreasing to around 4.07–4.21. From 2022, a notable increase in this ratio occurs, reaching a peak level above 5.30 during the early quarters of 2023. Following this peak, the ratio declines progressively to levels near 4.59 by mid-2025. This ratio’s fluctuations indicate varying efficiency in paying suppliers, with a higher ratio suggesting faster payment cycles and lower values indicating extended payment periods. The trend may reflect changes in working capital management or supplier negotiations over the analyzed timeframe.

Working Capital Turnover

Sherwin-Williams Co., working capital turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Current assets
Less: Current liabilities
Working capital
 
Net sales
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Working capital turnover = (Net salesQ2 2025 + Net salesQ1 2025 + Net salesQ4 2024 + Net salesQ3 2024) ÷ Working capital
= ( + + + ) ÷ =

2 Click competitor name to see calculations.


Working Capital
The working capital exhibits considerable volatility throughout the observed periods. Initially, it fluctuates between negative and positive values in 2020, starting at -292,200 thousand US$ in March and rising sharply to 817,300 thousand US$ in September before declining again. From 2021 onwards, the working capital predominantly remains negative, with the lowest points recorded in the second and third quarters of 2025, reaching approximately -1,837,000 and -1,771,100 thousand US$ respectively. This persistent negative working capital in recent years signals potential liquidity challenges or increased current liabilities relative to current assets.
Net Sales
Net sales show an overall upward trend with some seasonal or cyclical fluctuations. In 2020, net sales progressed from 4,146,700 thousand US$ in the first quarter to a peak of 5,122,200 thousand US$ in the third quarter, before declining in the last quarter. Through 2021 and 2022, sales generally increased, reaching a peak of 6,247,300 thousand US$ in the third quarter of 2024. Despite occasional declines, the general trend indicates growth in sales revenue over the years, suggesting expanding business or increased demand.
Working Capital Turnover
Working capital turnover data is only available for select periods in 2022 and 2023, with extremely high values observed. For example, a value of 1,022.67 is seen in one period, with an even higher figure of 1,996.6 subsequently reported. Such high turnover ratios typically indicate highly efficient use of working capital to generate sales, although the absence of consistent data limits comprehensive trend analysis.
Overall Insights
The combination of rising net sales and predominantly negative working capital in recent periods may reflect a strategic approach to managing current assets and liabilities, possibly leveraging short-term liabilities to finance operations. The volatility in working capital could suggest fluctuations in inventory, receivables, or payables management. The sparse working capital turnover data, despite showing high efficiency in certain periods, does not allow for a conclusive assessment of operational effectiveness over time.

Average Inventory Processing Period

Sherwin-Williams Co., average inventory processing period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Inventory turnover
Short-term Activity Ratio (no. days)
Average inventory processing period1
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

2 Click competitor name to see calculations.


Inventory Turnover Ratio
The inventory turnover ratio shows a general decrease over the observed periods. Starting from 5.37 in March 2020, it experienced slight increases reaching a peak around 5.99 in December 2020. After that peak, the ratio gradually declined, reaching its lowest figures of 4.7 and 4.75 in the latter quarters of 2024 and early 2025 respectively. Despite minor fluctuations, the ratio remains relatively stable around the mid-5 range for most of the periods, but the recent downtrend indicates slower inventory movement.
Average Inventory Processing Period (Days)
The average inventory processing period shows an inverse pattern compared to the inventory turnover ratio. Starting around 68 days in early 2020, the period decreased to approximately 61 days by December 2020, indicating faster inventory processing at that time. Subsequently, the period increased steadily, peaking at 77-78 days in early to mid-2025. This lengthening of the inventory processing period suggests that the company is taking more time to convert inventory into sales, consistent with the downward trend observed in the inventory turnover ratio.
Overall Trends and Insights
Over the several years analyzed, there is a clear indication of a slowing inventory cycle, characterized by a declining inventory turnover ratio and an increasing average inventory processing period. This trend may imply challenges in sales velocity or inventory management efficiency. The pattern suggests that inventory is held longer, potentially increasing holding costs and impacting liquidity. Management may need to investigate causes such as demand variability, supply chain disruptions, or changes in product mix to address these emerging inefficiencies.

Average Receivable Collection Period

Sherwin-Williams Co., average receivable collection period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Receivables turnover
Short-term Activity Ratio (no. days)
Average receivable collection period1
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

2 Click competitor name to see calculations.


Receivables Turnover
The receivables turnover ratio demonstrates fluctuations over the observed periods. Starting from a level of 8.84 in the first reported quarter, there is a general declining trend with some intermittent recoveries. The ratio decreases to a low of 6.97 in the third quarter of 2022, suggesting a slower frequency of receivables collection during that time. Subsequently, the ratio rises again, peaking at 9.67 in the first quarter of 2025, indicating an improvement in the efficiency of collecting receivables. Toward the end of the reported periods, the turnover ratio slightly reduces to 7.42 in the second quarter of 2025. Overall, the data depicts cyclical behavior with periodic strengthening and weakening of receivables turnover efficiency.
Average Receivable Collection Period
The average receivable collection period inversely corresponds with the receivables turnover ratio and ranges from 38 days to 52 days over the observed timeframe. Initially, the period expands from 41 days to a peak of 52 days in the third quarter of 2022, reflecting a slower collection process correlating with the decreased receivables turnover noted earlier. Thereafter, the collection days generally decrease, achieving a minimum of 38 days in the first quarter of 2025, representing an improvement in the speed of collections. The latter stages witness a slight increase again to 49 days by mid-2025, consistent with the corresponding decrease in the turnover ratio.
Summary
The data reveals inverse relationships between the receivables turnover ratio and the average receivable collection period, as expected in financial analysis. Periods marked by lower turnover ratios correspond with longer collection intervals, indicating slower conversion of receivables to cash. Conversely, shorter collection periods align with higher turnover ratios, highlighting improved efficiency. The fluctuations suggest variable operational or market conditions affecting receivables management over the quarters analyzed. The latest data points show improvement in turnover and collection speed compared to earlier lows but reveal some recent moderation in efficiency.

Operating Cycle

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

No. days

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Average inventory processing period
Average receivable collection period
Short-term Activity Ratio
Operating cycle1
Benchmarks
Operating Cycle, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =

2 Click competitor name to see calculations.


Average inventory processing period
The average inventory processing period demonstrates some fluctuation over the observed quarters. Starting at 68 days in March 2021, it decreased slightly to 61 days by December 2021. Subsequently, there was an increasing trend reaching a peak around 77 days in March 2023. Following this peak, the period declined to 65 days in June 2023, but then it rose again to stabilize around the high 60s to low 70s between September 2023 and June 2024. Toward the end of the timeline, the period increased notably to 78 days in December 2024 before slightly reducing to 77 days in March 2025. This pattern suggests some variability in how quickly inventory is turned over, with periods of improvement followed by longer processing times, possibly reflecting changes in inventory management or market demand cycles.
Average receivable collection period
The average receivable collection period starts at 41 days in March 2021 and generally shows an upward tendency, reaching highs around 50 to 52 days in mid-2022 and mid-2023. There are fluctuations, with declines to the high 30-day range observed in March 2024 and March 2025. Overall, the receivable collection period fluctuates between approximately 38 and 52 days, indicating varying efficiency in collecting receivables. The transient rises in the collection period imply occasional delays or leniency in credit terms, while the declines may indicate periods of prompt collection.
Operating cycle
The operating cycle, which integrates both inventory processing and receivable collection periods, exhibits some variability but remains relatively stable with a mild upward trend overall. It begins at 109 days in March 2021, fluctuating in the low 110s to mid-120s through successive quarters. Notably, the operating cycle reached higher points of 124 to 126 days in late 2022 and the final quarters of 2024. Periods of reduction to the low 110s occur intermittently, such as in December 2023 and March 2024, indicating temporary improvements in operational efficiency. The extension of the operating cycle in recent quarters suggests a lengthening of the time required to convert inventory and receivables into cash, which could impact liquidity if the trend continues.

Average Payables Payment Period

Sherwin-Williams Co., average payables payment period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Payables turnover
Short-term Activity Ratio (no. days)
Average payables payment period1
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

2 Click competitor name to see calculations.


Payables Turnover Ratio Trends
The payables turnover ratio shows variability across the observed periods, generally fluctuating between approximately 4.0 and 5.3 times per year. Starting at 4.57 in the first available quarter in 2020, the ratio slightly decreased to a low near 4.07 by the end of 2020. Subsequently, the ratio exhibited an upward trend from early 2021, peaking at 5.31 in the first quarter of 2024. This indicates a more frequent payment of payables during that period. However, following this peak, a moderate decline is evident towards the end of the dataset, settling near 4.59 by the second quarter of 2025. Overall, the trend suggests that the company had periods of both increased and decreased efficiency in payables management, with improvements especially notable around 2023 and early 2024 before a slight easing.
Average Payables Payment Period Trends
The average payables payment period, representing the number of days taken to pay suppliers, inversely mirrors the pattern observed in the payables turnover ratio. Early in the series, periods around 80 to 90 days are typical, with a peak near 90 days at the end of 2020. Following this, a general improvement is seen as the payment period shortens to a low of approximately 69 days around late 2022 and early 2023, consistent with the peak in turnover ratio during these quarters. The dataset shows some fluctuation with slight increases afterward, reaching near 79 days in mid-2025. These dynamics reflect changes in trade credit utilization and payment policies, with a tendency towards more prompt payments in early 2023 followed by a moderate extension of payment terms into 2025.
Summary Insights
The payables turnover ratio and average payment period together indicate a pattern of variable payment efficiency over time. Notably, the company improved its payment speed starting in late 2021 through early 2024, as evidenced by rising turnover ratios and shortening payment periods. The subsequent reversal in these trends suggests a strategic or operational adjustment toward slightly longer payment terms post-2024. These trends are consistent with adjustments in working capital management, potentially reflecting changing supplier negotiation dynamics or cash flow considerations.

Cash Conversion Cycle

Sherwin-Williams Co., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Average inventory processing period
Average receivable collection period
Average payables payment period
Short-term Activity Ratio
Cash conversion cycle1
Benchmarks
Cash Conversion Cycle, Competitors2
Linde plc

Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q2 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + =

2 Click competitor name to see calculations.


The financial data reveals several patterns and shifts in the company's working capital management metrics over the reported periods.

Average Inventory Processing Period
This metric shows fluctuations with values generally ranging between the low 60s to mid 70s in terms of days. After an initial period where data is unavailable, inventory days settled around the high 60s to low 70s from early 2021 onward. Notably, it peaks at 78 days in late 2024 before stabilizing around the high 70s by mid-2025. This suggests some variability in inventory turnover, with periods indicating slower movement of inventory toward the later part of the timeline.
Average Receivable Collection Period
The days outstanding for receivables exhibit variability but without a clear upward or downward long-term trend. Early 2021 to 2023 periods show values generally oscillating between high 40s to low 50s days, with some dips to high 30s and early 40s across 2023 to 2025. The data suggests that receivables collection efficiency experiences cyclical swings, occasionally improving but generally remaining within a moderate range around 40 to 50 days.
Average Payables Payment Period
Payables payment periods demonstrate more variability compared to other metrics. Initial values in early 2021 start near 80 days, then peak at 90 days at the end of 2020, followed by some notable declines into the late 60s toward 2023. However, from late 2023 onward, the payment period increases again, nearing 79 days by mid-2025. This indicates shifting supplier payment practices, with episodes of both extended and shortened payment durations, perhaps reflecting changes in liquidity management or supplier negotiations.
Cash Conversion Cycle
The cash conversion cycle exhibits a general pattern of increase over the timeline. Starting with lower values around 19 to 29 days in 2020 and early 2021, it progressively extends, peaking at 53 days in early 2023. Subsequent periods maintain a higher cycle generally around 39 to 48 days without reducing back to initial low levels. This trend suggests that the company's ability to convert resource inputs into cash inflows experiences elongation, potentially driven by slower inventory turnover and receivables collection combined with shorter payables deferral in certain periods.