Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Sherwin-Williams Co., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Sherwin-Williams Co. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Sherwin-Williams Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Sherwin-Williams Co. total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Sherwin-Williams Co. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover
Sherwin-Williams Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 23,051,900) | 22,148,900) | 19,944,600) | 18,361,700) | 17,900,800) | |
| Property, plant and equipment, net | 2,836,800) | 2,207,000) | 1,867,300) | 1,834,500) | 1,835,200) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 8.13 | 10.04 | 10.68 | 10.01 | 9.75 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Linde plc | 1.33 | 1.41 | 1.18 | 0.94 | 0.97 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Chemicals | 2.03 | 2.14 | 1.81 | 1.49 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Materials | 1.26 | 1.35 | 1.27 | 0.99 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 23,051,900 ÷ 2,836,800 = 8.13
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Sherwin-Williams Co. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Sherwin-Williams Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 23,051,900) | 22,148,900) | 19,944,600) | 18,361,700) | 17,900,800) | |
| Property, plant and equipment, net | 2,836,800) | 2,207,000) | 1,867,300) | 1,834,500) | 1,835,200) | |
| Operating lease right-of-use assets | 1,887,400) | 1,866,800) | 1,820,600) | 1,761,100) | 1,685,600) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 4,724,200) | 4,073,800) | 3,687,900) | 3,595,600) | 3,520,800) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.88 | 5.44 | 5.41 | 5.11 | 5.08 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Linde plc | 1.29 | 1.37 | 1.14 | 0.91 | 0.94 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Chemicals | 1.85 | 1.95 | 1.65 | 1.37 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Materials | 1.20 | 1.28 | 1.21 | 0.95 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 23,051,900 ÷ 4,724,200 = 4.88
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Sherwin-Williams Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Total Asset Turnover
Sherwin-Williams Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 23,051,900) | 22,148,900) | 19,944,600) | 18,361,700) | 17,900,800) | |
| Total assets | 22,954,400) | 22,594,000) | 20,666,700) | 20,401,600) | 20,496,200) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 1.00 | 0.98 | 0.97 | 0.90 | 0.87 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Linde plc | 0.41 | 0.42 | 0.38 | 0.31 | 0.33 | |
| Total Asset Turnover, Sector | ||||||
| Chemicals | 0.54 | 0.54 | 0.50 | 0.42 | — | |
| Total Asset Turnover, Industry | ||||||
| Materials | 0.50 | 0.51 | 0.49 | 0.40 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 23,051,900 ÷ 22,954,400 = 1.00
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Sherwin-Williams Co. total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Equity Turnover
Sherwin-Williams Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 23,051,900) | 22,148,900) | 19,944,600) | 18,361,700) | 17,900,800) | |
| Shareholders’ equity | 3,715,800) | 3,102,100) | 2,437,200) | 3,610,800) | 4,123,300) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 6.20 | 7.14 | 8.18 | 5.09 | 4.34 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Linde plc | 0.83 | 0.83 | 0.70 | 0.58 | 0.58 | |
| Equity Turnover, Sector | ||||||
| Chemicals | 1.29 | 1.29 | 1.09 | 0.90 | — | |
| Equity Turnover, Industry | ||||||
| Materials | 1.31 | 1.33 | 1.22 | 0.98 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Equity turnover = Net sales ÷ Shareholders’ equity
= 23,051,900 ÷ 3,715,800 = 6.20
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Sherwin-Williams Co. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |