Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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)
Sherwin-Williams Co., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
The short-term operating activity ratios exhibit varied trends over the observed period. Inventory turnover generally remained stable between 4.76 and 5.61, with a slight downward trend from 2022 to 2025. Receivables turnover demonstrated more volatility, peaking in December 2022 and December 2024, but generally fluctuating between 7.29 and 9.67. Payables turnover showed an increasing trend from 4.13 to 5.31 between March 2022 and December 2022, followed by a slight decline and stabilization around 4.68 to 5.28. The working capital turnover metric is sparsely populated, showing significant values in September 2022 and June 2023, but lacks consistent reporting.
- Inventory Management
- The average inventory processing period increased from 72 days in March 2022 to 78 days in March 2025, indicating a lengthening time to convert inventory into sales. This increase coincides with the slight decline in inventory turnover, suggesting a potential slowdown in inventory flow. However, the period stabilized at 70 days in the latter half of the observed timeframe.
- Receivables Management
- The average receivable collection period decreased from 50 days in March 2022 to 38 days in December 2024, suggesting improved efficiency in collecting receivables. However, it increased again to 43 days by December 2025. This fluctuation aligns with the volatility observed in receivables turnover, indicating a dynamic relationship between sales terms and collection effectiveness.
- Payables Management
- The average payables payment period decreased from 88 days in March 2022 to 69 days in December 2022, potentially reflecting improved negotiation with suppliers or more efficient payment processes. It then increased to 78 days by June 2025, suggesting a possible shift in payment terms or a lengthening of the time taken to settle obligations.
- Overall Operating Cycle & Cash Conversion Cycle
- The operating cycle generally decreased from 122 days in March 2022 to 113 days in December 2025, indicating a shortening of the time required to purchase inventory, sell it, and collect cash. The cash conversion cycle initially increased from 34 days to 53 days, but then decreased to 42 days by December 2025. This suggests an initial strain on cash flow, followed by improvements in managing the time between paying for inventory and receiving cash from sales. The fluctuations in the operating and cash conversion cycles appear to be influenced by the combined trends in inventory processing, receivable collection, and payable payment periods.
In summary, the company demonstrates generally efficient short-term operating activity, with some fluctuations in receivables and payables management. The slight lengthening of the inventory processing period warrants monitoring, while the overall trend in the operating and cash conversion cycles suggests improving efficiency in the cash flow process.
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Turnover Ratios
Average No. Days
Inventory Turnover
Sherwin-Williams Co., inventory turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cost of goods sold | 2,883,300) | 3,232,700) | 3,196,200) | 2,746,600) | 2,724,000) | 3,135,000) | 3,208,100) | 2,836,300) | 2,703,500) | 3,200,500) | 3,368,300) | 3,021,500) | 2,996,700) | 3,458,000) | 3,423,300) | 2,945,800) | |||||
| Inventories | 2,318,200) | 2,276,300) | 2,484,600) | 2,515,200) | 2,288,100) | 2,267,400) | 2,289,100) | 2,378,000) | 2,329,800) | 2,244,300) | 2,439,000) | 2,707,800) | 2,626,500) | 2,547,800) | 2,411,600) | 2,328,600) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Inventory turnover1 | 5.20 | 5.23 | 4.75 | 4.70 | 5.20 | 5.24 | 5.22 | 5.09 | 5.28 | 5.61 | 5.27 | 4.76 | 4.88 | 4.99 | 5.08 | 5.07 | |||||
| Benchmarks | |||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | 8.46 | 8.06 | 8.08 | 8.61 | 8.81 | 8.27 | 8.22 | 8.23 | 8.27 | 8.42 | 8.88 | 9.29 | 9.83 | 10.75 | 10.66 | 10.36 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Inventory turnover
= (Cost of goods soldQ4 2025
+ Cost of goods soldQ3 2025
+ Cost of goods soldQ2 2025
+ Cost of goods soldQ1 2025)
÷ Inventories
= (2,883,300 + 3,232,700 + 3,196,200 + 2,746,600)
÷ 2,318,200 = 5.20
2 Click competitor name to see calculations.
Inventory turnover exhibited a generally stable pattern over the observed period, with some fluctuations. Initial values ranged between 5.07 and 5.08 in the first two quarters of 2022, indicating a consistent rate of inventory conversion into sales. A slight decline was then observed through the end of 2022, reaching 4.88 in December. The first half of 2023 showed an increase, peaking at 5.61 in September, before decreasing again to 5.28 by the end of the year. This pattern of fluctuation continued into 2024 and 2025, with turnover rates remaining largely within the 4.70 to 5.27 range.
- Overall Trend
- The overall trend suggests a relatively consistent inventory management approach. While fluctuations occur, the inventory turnover ratio generally remains within a narrow band, indicating that the company maintains a predictable pace of selling and replenishing its inventory. There isn't a sustained upward or downward trend over the entire period.
- Short-Term Fluctuations
- The most notable short-term fluctuation occurred between September 2023 (5.61) and December 2023 (5.28), representing a decrease in inventory turnover. A similar decrease is observed between December 2024 (5.20) and March 2025 (4.70). These declines could be attributable to seasonal factors, promotional activities, or changes in demand. Conversely, increases from March to June in both 2023 and 2025 suggest potential seasonal demand or successful inventory management strategies during those periods.
- Recent Performance
- The most recent quarters show inventory turnover stabilizing around the 5.20 mark. The ratio for December 2025 (5.20) is comparable to the values observed in the latter half of 2023 and 2024, suggesting a return to a more typical level after the dip in March 2025. The slight decrease from September 2025 (5.23) to December 2025 (5.20) is minimal and may not be indicative of a significant shift.
- Inventory and Cost of Goods Sold Relationship
- The fluctuations in inventory turnover appear to correlate with changes in both cost of goods sold and inventory levels. Periods of higher turnover generally coincide with increases in cost of goods sold and decreases in inventory, and vice versa. This suggests a responsive relationship between sales, production, and inventory management.
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Receivables Turnover
Sherwin-Williams Co., receivables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Net sales | 5,595,900) | 6,358,200) | 6,314,500) | 5,305,700) | 5,297,200) | 6,162,500) | 6,271,500) | 5,367,300) | 5,252,200) | 6,116,700) | 6,240,600) | 5,442,400) | 5,230,500) | 6,047,400) | 5,872,300) | 4,998,700) | |||||
| Accounts receivable, net | 2,791,200) | 3,122,300) | 3,111,900) | 2,813,100) | 2,388,800) | 2,973,400) | 3,048,100) | 2,809,100) | 2,467,900) | 2,940,900) | 3,117,800) | 2,909,200) | 2,563,600) | 2,897,600) | 2,982,500) | 2,783,600) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Receivables turnover1 | 8.45 | 7.45 | 7.42 | 8.19 | 9.67 | 7.75 | 7.55 | 8.18 | 9.34 | 7.83 | 7.36 | 7.77 | 8.64 | 7.48 | 6.97 | 7.29 | |||||
| Benchmarks | |||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | 6.84 | 6.28 | 6.36 | 6.67 | 7.14 | 6.78 | 6.56 | 6.54 | 6.96 | 6.92 | 6.90 | 7.02 | 7.32 | 7.34 | 6.79 | 6.56 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Receivables turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Accounts receivable, net
= (5,595,900 + 6,358,200 + 6,314,500 + 5,305,700)
÷ 2,791,200 = 8.45
2 Click competitor name to see calculations.
The receivables turnover ratio exhibits fluctuations over the observed period, generally ranging between 6.97 and 9.67. An initial decline is noted from the March 2022 value of 7.29 to 6.97 in June 2022, followed by a slight recovery to 7.48 in September 2022. The ratio then increases significantly to 8.64 by December 2022, before decreasing to 7.77 in March 2023.
- Overall Trend
- The ratio demonstrates a cyclical pattern. Periods of increase are often followed by periods of decrease. While there isn't a clear, sustained upward or downward trend across the entire timeframe, the ratio generally appears to be higher in the latter half of each year, particularly in December, suggesting a potential seasonal component to collection patterns.
- 2022 Performance
- The year 2022 began with a receivables turnover of 7.29, experienced a slight dip mid-year, and concluded with a notable increase to 8.64. This suggests improved efficiency in collecting receivables during the latter portion of the year, potentially due to year-end collection efforts or changes in credit terms.
- 2023 Performance
- In 2023, the ratio started at 7.77 and decreased to 7.36 in June, then recovered to 7.83 in September, and peaked at 9.34 in December. This pattern mirrors 2022, with a stronger performance in the final quarter. The subsequent decline to 7.42 in March 2024 suggests a return to more typical collection rates after the year-end peak.
- Recent Activity (2024-2025)
- From March 2024 through December 2025, the ratio fluctuates between approximately 7.42 and 8.45. The highest value within this period is 9.67 in September 2024, and the most recent value, December 2025, is 8.45. This indicates continued variability, but generally maintains a level consistent with the historical range. The ratio in June 2025 (7.45) is the lowest observed in the last two years.
The observed fluctuations in receivables turnover warrant further investigation to determine the underlying causes. Factors such as changes in sales terms, credit policies, and the composition of the customer base could all contribute to these variations.
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Payables Turnover
Sherwin-Williams Co., payables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cost of goods sold | 2,883,300) | 3,232,700) | 3,196,200) | 2,746,600) | 2,724,000) | 3,135,000) | 3,208,100) | 2,836,300) | 2,703,500) | 3,200,500) | 3,368,300) | 3,021,500) | 2,996,700) | 3,458,000) | 3,423,300) | 2,945,800) | |||||
| Accounts payable | 2,354,200) | 2,441,600) | 2,570,000) | 2,512,900) | 2,253,200) | 2,537,700) | 2,493,900) | 2,453,900) | 2,315,000) | 2,424,800) | 2,489,700) | 2,513,600) | 2,436,500) | 2,808,400) | 2,992,900) | 2,860,800) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Payables turnover1 | 5.12 | 4.87 | 4.59 | 4.70 | 5.28 | 4.68 | 4.79 | 4.93 | 5.31 | 5.19 | 5.16 | 5.13 | 5.26 | 4.53 | 4.10 | 4.13 | |||||
| Benchmarks | |||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | 6.19 | 6.49 | 6.61 | 6.98 | 6.84 | 6.06 | 6.02 | 5.99 | 5.79 | 6.36 | 6.20 | 6.49 | 6.49 | 6.50 | 5.66 | 5.40 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Payables turnover
= (Cost of goods soldQ4 2025
+ Cost of goods soldQ3 2025
+ Cost of goods soldQ2 2025
+ Cost of goods soldQ1 2025)
÷ Accounts payable
= (2,883,300 + 3,232,700 + 3,196,200 + 2,746,600)
÷ 2,354,200 = 5.12
2 Click competitor name to see calculations.
The accounts payable turnover ratio exhibits fluctuations over the observed period, generally remaining within a relatively narrow range. An initial period of stability is followed by an increase, then a subsequent period of decline and renewed increase. The ratio appears to be influenced by seasonal patterns in both cost of goods sold and accounts payable.
- Overall Trend
- From March 31, 2022, through December 31, 2022, the payables turnover ratio remained relatively stable, fluctuating between 4.10 and 5.26. A peak of 5.26 was observed in December 2022. Following this, the ratio experienced a decline through the first three quarters of 2023, reaching a low of 4.68 in September 2023. The ratio then increased again in December 2023, and continued to fluctuate between 4.59 and 5.12 through December 2025.
- Seasonal Patterns
- A recurring pattern appears to exist, with higher turnover ratios generally observed in the fourth quarter (December) of each year. This coincides with a typical decrease in accounts payable balances at year-end, while cost of goods sold also tends to be lower in the final quarter. Conversely, the first and second quarters often show lower turnover ratios, potentially linked to increased purchasing activity and higher accounts payable balances to support production or sales.
- Recent Performance (2024-2025)
- The most recent period, from March 2024 through December 2025, demonstrates continued variability. The ratio decreased from 4.93 in March 2024 to 4.59 in June 2025, before increasing to 5.12 in December 2025. This suggests ongoing management of supplier relationships and payment terms, potentially in response to changing economic conditions or internal strategies.
- Comparison to Initial Period
- The ratio in December 2025 (5.12) is higher than the ratio in March 2022 (4.13), indicating a slightly more efficient use of accounts payable over the period. However, the difference is not substantial, suggesting that the company’s payment practices have remained broadly consistent.
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Working Capital Turnover
Sherwin-Williams Co., working capital turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Current assets | 6,007,400) | 6,146,100) | 6,425,300) | 6,039,700) | 5,400,800) | 5,974,300) | 6,050,600) | 5,842,400) | 5,512,900) | 6,198,800) | 6,350,600) | 6,292,800) | 5,907,700) | 6,117,200) | 6,259,500) | 6,086,400) | |||||
| Less: Current liabilities | 6,920,300) | 7,473,500) | 8,196,400) | 7,876,700) | 6,808,700) | 7,218,100) | 7,466,600) | 7,483,500) | 6,626,900) | 6,623,200) | 6,339,100) | 6,306,000) | 5,960,700) | 6,096,000) | 7,198,200) | 6,953,100) | |||||
| Working capital | (912,900) | (1,327,400) | (1,771,100) | (1,837,000) | (1,407,900) | (1,243,800) | (1,416,000) | (1,641,100) | (1,114,000) | (424,400) | 11,500) | (13,200) | (53,000) | 21,200) | (938,700) | (866,700) | |||||
| Net sales | 5,595,900) | 6,358,200) | 6,314,500) | 5,305,700) | 5,297,200) | 6,162,500) | 6,271,500) | 5,367,300) | 5,252,200) | 6,116,700) | 6,240,600) | 5,442,400) | 5,230,500) | 6,047,400) | 5,872,300) | 4,998,700) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | — | 1,996.60 | — | — | 1,022.67 | — | — | |||||
| Benchmarks | |||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||
| Linde plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Working capital turnover
= (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
÷ Working capital
= (5,595,900 + 6,358,200 + 6,314,500 + 5,305,700)
÷ -912,900 = —
2 Click competitor name to see calculations.
The working capital turnover ratio exhibits significant fluctuation throughout the observed period. Analysis reveals periods of positive turnover alongside instances where the ratio is not calculable due to negative working capital.
- Working Capital Trend
- Working capital is consistently negative for the majority of the analyzed period, beginning in the first quarter of 2022 and persisting through the first quarter of 2025. A brief period of positive working capital is observed in the third quarter of 2022 and the second quarter of 2023, but these are isolated instances. The magnitude of negative working capital generally increases over time, reaching its most negative value in the first quarter of 2025.
- Net Sales Trend
- Net sales demonstrate seasonal patterns, with generally higher sales figures in the second and third quarters of each year. Sales fluctuate between approximately $5.2 billion and $6.3 billion throughout the period. A slight downward trend in sales is observable in the later quarters of 2024 and the first quarter of 2025.
- Working Capital Turnover Ratio
- The working capital turnover ratio is reported for only three quarters: September 30, 2022, June 30, 2023, and March 31, 2025. In the third quarter of 2022, the ratio is 1,022.67. It increases substantially to 1,996.60 in the second quarter of 2023. The ratio is not available for the remaining periods, likely due to the negative working capital balances. The ratio indicates that for every dollar of working capital, approximately $1,022.67 to $1,996.60 of net sales were generated during those specific quarters.
The consistent negative working capital suggests the company relies heavily on external financing to fund its operations. The limited availability of the working capital turnover ratio, coupled with the negative working capital, hinders a comprehensive assessment of the company’s operational efficiency in utilizing its working capital. The high turnover ratios when available suggest efficient use of the limited working capital during those periods.
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Average Inventory Processing Period
Sherwin-Williams Co., average inventory processing period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Inventory turnover | 5.20 | 5.23 | 4.75 | 4.70 | 5.20 | 5.24 | 5.22 | 5.09 | 5.28 | 5.61 | 5.27 | 4.76 | 4.88 | 4.99 | 5.08 | 5.07 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average inventory processing period1 | 70 | 70 | 77 | 78 | 70 | 70 | 70 | 72 | 69 | 65 | 69 | 77 | 75 | 73 | 72 | 72 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||
| Linde plc | 43 | 45 | 45 | 42 | 41 | 44 | 44 | 44 | 44 | 43 | 41 | 39 | 37 | 34 | 34 | 35 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.20 = 70
2 Click competitor name to see calculations.
The average inventory processing period exhibited fluctuations over the observed timeframe. Initially, the period remained stable before demonstrating a slight increasing trend, followed by a period of improvement, and then a renewed increase. A detailed examination of the trends is presented below.
- Initial Stability and Gradual Increase (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the average inventory processing period remained relatively consistent at 72 days for three consecutive quarters. A slight increase was then observed in the final quarter of 2022, reaching 75 days. This suggests a minor slowdown in the rate at which inventory was being sold during that period.
- Improvement in Processing Period (Mar 31, 2023 – Sep 30, 2023)
- The first three quarters of 2023 showed a positive trend, with the average inventory processing period decreasing from 77 days to 65 days. This indicates improved efficiency in inventory management and a faster turnover of goods. The lowest point in the observed period was reached on September 30, 2023.
- Stabilization and Subsequent Increase (Dec 31, 2023 – Mar 31, 2025)
- Following the improvement in 2023, the average inventory processing period stabilized around 70 days for the remainder of 2023 and the first half of 2024. However, an increase was noted in the latter half of the period, rising to 78 days by March 31, 2025. The period then decreased slightly to 70 days by September 30, 2025, and remained at 70 days through December 31, 2025.
- Overall Trend
- While fluctuations were present, the average inventory processing period generally increased from 72 days in March 2022 to 70 days in December 2025. The most significant changes occurred within shorter timeframes, demonstrating the sensitivity of this metric to operational factors. The period experienced a notable dip in 2023, suggesting successful inventory management initiatives, but this improvement was not fully sustained over the long term.
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Average Receivable Collection Period
Sherwin-Williams Co., average receivable collection period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Receivables turnover | 8.45 | 7.45 | 7.42 | 8.19 | 9.67 | 7.75 | 7.55 | 8.18 | 9.34 | 7.83 | 7.36 | 7.77 | 8.64 | 7.48 | 6.97 | 7.29 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average receivable collection period1 | 43 | 49 | 49 | 45 | 38 | 47 | 48 | 45 | 39 | 47 | 50 | 47 | 42 | 49 | 52 | 50 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| Linde plc | 53 | 58 | 57 | 55 | 51 | 54 | 56 | 56 | 52 | 53 | 53 | 52 | 50 | 50 | 54 | 56 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.45 = 43
2 Click competitor name to see calculations.
The average receivable collection period exhibited fluctuations over the observed timeframe, generally remaining within a relatively narrow range. An initial period of stability is followed by a noticeable decrease, then a return towards the initial values, and finally another decrease.
- Overall Trend
- The average collection period began at 50 days in March 2022, increased to 52 days in June 2022, and then decreased to 42 days by December 2022. It subsequently rose again, reaching 49 days in March 2023 and remaining around that level through September 2025. A final decrease is observed, with the period ending at 43 days in December 2025.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to December 2022, the collection period initially increased slightly before experiencing a significant decline. This suggests a potential improvement in the efficiency of collecting receivables during the latter half of 2022. The subsequent increase in the first half of 2023 may indicate a temporary slowdown in collections or a change in credit terms offered to customers.
- Stability and Recent Performance (2023-2025)
- Following the fluctuations in 2022 and early 2023, the average collection period demonstrated a period of relative stability, hovering around 47 to 49 days from March 2023 through September 2025. The final decrease to 43 days in December 2025 suggests a renewed focus on efficient receivables management or a favorable shift in customer payment behavior.
- Comparison to Initial Period
- The average collection period in December 2025 (43 days) is shorter than the initial period observed in March 2022 (50 days). This indicates an overall improvement in the speed at which receivables are converted into cash over the entire observation period, despite the interim fluctuations.
The observed variations in the average collection period warrant further investigation to determine the underlying causes. Factors such as changes in sales volume, credit policies, and customer demographics could all contribute to these fluctuations.
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Operating Cycle
Sherwin-Williams Co., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 70 | 70 | 77 | 78 | 70 | 70 | 70 | 72 | 69 | 65 | 69 | 77 | 75 | 73 | 72 | 72 | |||||
| Average receivable collection period | 43 | 49 | 49 | 45 | 38 | 47 | 48 | 45 | 39 | 47 | 50 | 47 | 42 | 49 | 52 | 50 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Operating cycle1 | 113 | 119 | 126 | 123 | 108 | 117 | 118 | 117 | 108 | 112 | 119 | 124 | 117 | 122 | 124 | 122 | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||
| Linde plc | 96 | 103 | 102 | 97 | 92 | 98 | 100 | 100 | 96 | 96 | 94 | 91 | 87 | 84 | 88 | 91 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 70 + 43 = 113
2 Click competitor name to see calculations.
The operating cycle exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Analysis reveals trends in both the components of the operating cycle – average inventory processing period and average receivable collection period – and the resulting combined cycle length.
- Average Inventory Processing Period
- The average inventory processing period generally remained within a narrow range between 70 and 78 days. An initial stability is observed through the first three quarters of 2022, followed by a slight increase to 75 days by the end of the year. The period then increased to 77 days in the first quarter of 2023 before decreasing to 65 days in the third quarter of 2023, representing the lowest point in the observed timeframe. The period then fluctuated between 69 and 72 days through the end of 2024, before increasing to 78 days in the first quarter of 2025 and decreasing to 70 days by the end of the observed period.
- Average Receivable Collection Period
- The average receivable collection period demonstrated more variability than the inventory processing period. It began at 50 days in March 2022 and peaked at 52 days in June 2022. A notable decrease was observed through the end of 2022, falling to 42 days. The period then increased to 50 days in June 2023, followed by a decline to 39 days by the end of 2023. Fluctuations continued into 2024, with the period ranging from 38 to 48 days. The period increased to 49 days in June 2025, before decreasing to 43 days by the end of the observed period.
- Operating Cycle
- The operating cycle generally ranged between 108 and 126 days. The cycle length began at 122 days in March 2022 and reached a low of 108 days by the end of 2022. An increase was observed in the first quarter of 2023, reaching 124 days, before decreasing to 112 days in the third quarter of 2023. The cycle length remained relatively stable between 108 and 119 days through the end of 2024. The operating cycle increased to 123 days in the first quarter of 2025, before decreasing to 113 days by the end of the observed period. The fluctuations in the operating cycle largely mirrored the combined effects of the changes in both the inventory processing and receivable collection periods.
Overall, the observed trends suggest a dynamic relationship between inventory management and credit policies. The decrease in the operating cycle in late 2022 and early 2023 indicates improved efficiency in converting inventory into cash. The subsequent fluctuations suggest potential responsiveness to changing market conditions or internal operational adjustments. The slight increase in the operating cycle in the first quarter of 2025 warrants further investigation to determine the underlying causes.
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Average Payables Payment Period
Sherwin-Williams Co., average payables payment period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Payables turnover | 5.12 | 4.87 | 4.59 | 4.70 | 5.28 | 4.68 | 4.79 | 4.93 | 5.31 | 5.19 | 5.16 | 5.13 | 5.26 | 4.53 | 4.10 | 4.13 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average payables payment period1 | 71 | 75 | 79 | 78 | 69 | 78 | 76 | 74 | 69 | 70 | 71 | 71 | 69 | 81 | 89 | 88 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||
| Linde plc | 59 | 56 | 55 | 52 | 53 | 60 | 61 | 61 | 63 | 57 | 59 | 56 | 56 | 56 | 64 | 68 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.12 = 71
2 Click competitor name to see calculations.
The average payables payment period exhibited fluctuations over the observed period, generally decreasing initially before stabilizing and then increasing slightly. An examination of the quarterly figures reveals a discernible pattern of change in the company’s payment practices.
- Overall Trend
- The average payables payment period began at 88 days in March 2022 and generally decreased to a low of 69 days by December 2022. It then remained relatively stable around 70-71 days through the first three quarters of 2023. A subsequent increase is observed, rising to 79 days by June 2025, before decreasing slightly to 71 days by December 2025.
- Initial Decrease (Mar 31, 2022 – Dec 31, 2022)
- From March 2022 to December 2022, the average payables payment period decreased by 19 days, indicating a shortening of the time taken to settle obligations to suppliers. This could be attributed to improved cash flow management, negotiated payment terms, or a strategic decision to optimize working capital.
- Period of Stability (Mar 31, 2023 – Sep 30, 2023)
- The period from March 2023 to September 2023 demonstrates a period of relative stability, with the average payables payment period fluctuating within a narrow range of 70 to 71 days. This suggests consistent payment practices during this timeframe.
- Recent Increase (Mar 31, 2024 – Jun 30, 2025)
- Starting in March 2024, the average payables payment period began to increase, reaching 78 days by March 2025 and peaking at 79 days in June 2025. This increase may indicate a shift in supplier negotiations, a tightening of the company’s cash position, or a deliberate strategy to extend payment terms. The slight decrease to 71 days in December 2025 could represent a correction or seasonal fluctuation.
The observed changes in the average payables payment period warrant further investigation to understand the underlying drivers and their potential impact on supplier relationships and overall financial health.
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Cash Conversion Cycle
Sherwin-Williams Co., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 70 | 70 | 77 | 78 | 70 | 70 | 70 | 72 | 69 | 65 | 69 | 77 | 75 | 73 | 72 | 72 | |||||
| Average receivable collection period | 43 | 49 | 49 | 45 | 38 | 47 | 48 | 45 | 39 | 47 | 50 | 47 | 42 | 49 | 52 | 50 | |||||
| Average payables payment period | 71 | 75 | 79 | 78 | 69 | 78 | 76 | 74 | 69 | 70 | 71 | 71 | 69 | 81 | 89 | 88 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Cash conversion cycle1 | 42 | 44 | 47 | 45 | 39 | 39 | 42 | 43 | 39 | 42 | 48 | 53 | 48 | 41 | 35 | 34 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||
| Linde plc | 37 | 47 | 47 | 45 | 39 | 38 | 39 | 39 | 33 | 39 | 35 | 35 | 31 | 28 | 24 | 23 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q4 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 70 + 43 – 71 = 42
2 Click competitor name to see calculations.
The short-term operating activity of the company, as measured by its cash conversion cycle and component ratios, exhibits fluctuating trends over the observed period. Generally, the cash conversion cycle increased through the first half of 2023 before decreasing and stabilizing. A closer examination of the individual components reveals the drivers of these changes.
- Average Inventory Processing Period
- The average time to process inventory generally increased from 72 days in the first quarter of 2022 to 77 days in the first quarter of 2023. It then decreased to 65 days by the third quarter of 2023, before stabilizing around 70-72 days through the end of 2024. A slight increase to 78 days was observed in the first quarter of 2025, followed by a return to 70 days in the subsequent quarter and holding steady through the end of the observed period. This suggests potential improvements in inventory management during late 2023 and early 2024, followed by a minor reversal.
- Average Receivable Collection Period
- The average receivable collection period showed variability. It rose from 50 days in the first quarter of 2022 to 52 days in the second, then decreased to 42 days by the end of 2022. The period fluctuated between 47 and 50 days throughout 2023. A decrease to 38 days was noted in the fourth quarter of 2023, followed by a return to the 45-49 day range through the first three quarters of 2025, concluding at 43 days. This indicates some success in accelerating collections, particularly in late 2023, but a subsequent stabilization at a slightly higher level.
- Average Payables Payment Period
- The average payables payment period demonstrated a consistent downward trend from 88 days in the first quarter of 2022 to 69 days in the fourth quarter of 2022. This trend continued into 2023, stabilizing around 70-71 days for the first three quarters. The period increased to 74-79 days in the first three quarters of 2024, before decreasing to 71 days by the end of 2025. This suggests a shift in payment terms or supplier relationships, with a potential tightening of payment terms in 2022-2023, followed by a slight lengthening and then stabilization.
- Cash Conversion Cycle
- The cash conversion cycle increased from 34 days in the first quarter of 2022 to 53 days in the first quarter of 2023, driven by increases in both inventory processing and receivable collection periods. It then decreased to 39 days by the end of 2023, reflecting improvements in both inventory and receivable management, and stabilized around 39-45 days through the end of the observed period. The cycle peaked in the first quarter of 2023 and has generally trended downward since, indicating improved efficiency in converting investments in inventory and receivables into cash.
Overall, the company experienced a period of increasing cash conversion cycle length through the first half of 2023, followed by a period of improvement and stabilization. The fluctuations in individual components suggest active management of inventory, receivables, and payables, with varying degrees of success over the observed timeframe.
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