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.

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Sherwin-Williams Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Activity Ratio
Total Asset Turnover
Reported 0.97 0.90 0.87 0.92 0.75
Adjusted 0.94 0.89 0.86 0.83 0.68
Liquidity Ratio
Current Ratio
Reported 0.88 1.00 1.02 1.01 1.12
Adjusted 1.00 1.08 1.11 1.12 1.21
Solvency Ratios
Debt to Equity
Reported 3.95 2.30 2.11 2.50 2.85
Adjusted 3.01 2.11 1.91 2.07 2.19
Debt to Capital
Reported 0.80 0.70 0.68 0.71 0.74
Adjusted 0.75 0.68 0.66 0.67 0.69
Financial Leverage
Reported 8.48 5.65 4.97 5.13 5.41
Adjusted 5.56 4.31 3.82 3.99 3.94
Profitability Ratios
Net Profit Margin
Reported 9.35% 11.06% 8.61% 6.32% 11.83%
Adjusted 10.39% 10.00% 7.30% 4.39% 10.19%
Return on Equity (ROE)
Reported 76.50% 56.23% 37.38% 29.72% 48.00%
Adjusted 54.25% 38.28% 23.97% 14.44% 27.48%
Return on Assets (ROA)
Reported 9.02% 9.95% 7.52% 5.79% 8.88%
Adjusted 9.75% 8.87% 6.28% 3.62% 6.97%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Sherwin-Williams Co. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Sherwin-Williams Co. adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Sherwin-Williams Co. adjusted debt-to-equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Sherwin-Williams Co. adjusted debt-to-capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Sherwin-Williams Co. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Sherwin-Williams Co. adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Sherwin-Williams Co. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Sherwin-Williams Co. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

Sherwin-Williams Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net sales 19,944,600 18,361,700 17,900,800 17,534,493 14,983,788
Total assets 20,666,700 20,401,600 20,496,200 19,134,279 19,958,427
Activity Ratio
Total asset turnover1 0.97 0.90 0.87 0.92 0.75
Adjusted
Selected Financial Data (US$ in thousands)
Net sales 19,944,600 18,361,700 17,900,800 17,534,493 14,983,788
Adjusted total assets2 21,245,800 20,699,600 20,814,200 21,238,941 21,883,976
Activity Ratio
Adjusted total asset turnover3 0.94 0.89 0.86 0.83 0.68

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
Total asset turnover = Net sales ÷ Total assets
= 19,944,600 ÷ 20,666,700 = 0.97

2 Adjusted total assets. See details »

3 2021 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 19,944,600 ÷ 21,245,800 = 0.94

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Sherwin-Williams Co. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Current assets 5,053,700 4,591,400 4,631,700 4,344,487 4,465,840
Current liabilities 5,719,500 4,594,400 4,521,900 4,297,747 3,987,180
Liquidity Ratio
Current ratio1 0.88 1.00 1.02 1.01 1.12
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted current assets2 5,695,600 4,957,000 5,008,000 4,826,380 4,805,798
Current liabilities 5,719,500 4,594,400 4,521,900 4,297,747 3,987,180
Liquidity Ratio
Adjusted current ratio3 1.00 1.08 1.11 1.12 1.21

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
Current ratio = Current assets ÷ Current liabilities
= 5,053,700 ÷ 5,719,500 = 0.88

2 Adjusted current assets. See details »

3 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,695,600 ÷ 5,719,500 = 1.00

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Sherwin-Williams Co. adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total debt 9,615,000 8,292,100 8,685,200 9,343,651 10,520,655
Shareholders’ equity 2,437,200 3,610,800 4,123,300 3,730,745 3,692,188
Solvency Ratio
Debt to equity1 3.95 2.30 2.11 2.50 2.85
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 11,495,400 10,113,500 10,427,500 11,042,764 12,170,421
Adjusted shareholders’ equity3 3,819,700 4,798,200 5,453,500 5,324,233 5,553,592
Solvency Ratio
Adjusted debt to equity4 3.01 2.11 1.91 2.07 2.19

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
Debt to equity = Total debt ÷ Shareholders’ equity
= 9,615,000 ÷ 2,437,200 = 3.95

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 11,495,400 ÷ 3,819,700 = 3.01

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Sherwin-Williams Co. adjusted debt-to-equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total debt 9,615,000 8,292,100 8,685,200 9,343,651 10,520,655
Total capital 12,052,200 11,902,900 12,808,500 13,074,396 14,212,843
Solvency Ratio
Debt to capital1 0.80 0.70 0.68 0.71 0.74
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 11,495,400 10,113,500 10,427,500 11,042,764 12,170,421
Adjusted total capital3 15,315,100 14,911,700 15,881,000 16,366,997 17,724,013
Solvency Ratio
Adjusted debt to capital4 0.75 0.68 0.66 0.67 0.69

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
Debt to capital = Total debt ÷ Total capital
= 9,615,000 ÷ 12,052,200 = 0.80

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 11,495,400 ÷ 15,315,100 = 0.75

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Sherwin-Williams Co. adjusted debt-to-capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total assets 20,666,700 20,401,600 20,496,200 19,134,279 19,958,427
Shareholders’ equity 2,437,200 3,610,800 4,123,300 3,730,745 3,692,188
Solvency Ratio
Financial leverage1 8.48 5.65 4.97 5.13 5.41
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets2 21,245,800 20,699,600 20,814,200 21,238,941 21,883,976
Adjusted shareholders’ equity3 3,819,700 4,798,200 5,453,500 5,324,233 5,553,592
Solvency Ratio
Adjusted financial leverage4 5.56 4.31 3.82 3.99 3.94

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
Financial leverage = Total assets ÷ Shareholders’ equity
= 20,666,700 ÷ 2,437,200 = 8.48

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 21,245,800 ÷ 3,819,700 = 5.56

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Sherwin-Williams Co. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net income 1,864,400 2,030,400 1,541,300 1,108,746 1,772,262
Net sales 19,944,600 18,361,700 17,900,800 17,534,493 14,983,788
Profitability Ratio
Net profit margin1 9.35% 11.06% 8.61% 6.32% 11.83%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 2,072,200 1,836,600 1,307,400 768,976 1,526,309
Net sales 19,944,600 18,361,700 17,900,800 17,534,493 14,983,788
Profitability Ratio
Adjusted net profit margin3 10.39% 10.00% 7.30% 4.39% 10.19%

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
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,864,400 ÷ 19,944,600 = 9.35%

2 Adjusted net income. See details »

3 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,072,200 ÷ 19,944,600 = 10.39%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Sherwin-Williams Co. adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net income 1,864,400 2,030,400 1,541,300 1,108,746 1,772,262
Shareholders’ equity 2,437,200 3,610,800 4,123,300 3,730,745 3,692,188
Profitability Ratio
ROE1 76.50% 56.23% 37.38% 29.72% 48.00%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 2,072,200 1,836,600 1,307,400 768,976 1,526,309
Adjusted shareholders’ equity3 3,819,700 4,798,200 5,453,500 5,324,233 5,553,592
Profitability Ratio
Adjusted ROE4 54.25% 38.28% 23.97% 14.44% 27.48%

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
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,864,400 ÷ 2,437,200 = 76.50%

2 Adjusted net income. See details »

3 Adjusted shareholders’ equity. See details »

4 2021 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 2,072,200 ÷ 3,819,700 = 54.25%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Sherwin-Williams Co. adjusted ROE improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net income 1,864,400 2,030,400 1,541,300 1,108,746 1,772,262
Total assets 20,666,700 20,401,600 20,496,200 19,134,279 19,958,427
Profitability Ratio
ROA1 9.02% 9.95% 7.52% 5.79% 8.88%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 2,072,200 1,836,600 1,307,400 768,976 1,526,309
Adjusted total assets3 21,245,800 20,699,600 20,814,200 21,238,941 21,883,976
Profitability Ratio
Adjusted ROA4 9.75% 8.87% 6.28% 3.62% 6.97%

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
ROA = 100 × Net income ÷ Total assets
= 100 × 1,864,400 ÷ 20,666,700 = 9.02%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,072,200 ÷ 21,245,800 = 9.75%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Sherwin-Williams Co. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.