Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Sherwin-Williams Co., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Sherwin-Williams Co. gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Sherwin-Williams Co. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Sherwin-Williams Co. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Sherwin-Williams Co. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Sherwin-Williams Co. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Gross Profit Margin
Sherwin-Williams Co., gross profit margin 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) | ||||||
| Gross profit | 10,758,100) | 9,325,100) | 8,542,700) | 8,682,600) | 8,036,100) | |
| Net sales | 23,051,900) | 22,148,900) | 19,944,600) | 18,361,700) | 17,900,800) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 46.67% | 42.10% | 42.83% | 47.29% | 44.89% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Linde plc | 46.76% | 41.70% | 43.03% | 43.53% | 41.04% | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 10,758,100 ÷ 23,051,900 = 46.67%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Sherwin-Williams Co. gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Operating Profit Margin
Sherwin-Williams Co., operating profit margin 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) | ||||||
| Operating income | 3,567,700) | 3,002,900) | 2,558,900) | 2,861,300) | 2,287,200) | |
| Net sales | 23,051,900) | 22,148,900) | 19,944,600) | 18,361,700) | 17,900,800) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 15.48% | 13.56% | 12.83% | 15.58% | 12.78% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Linde plc | 24.42% | 16.09% | 16.19% | 12.19% | 10.39% | |
| Operating Profit Margin, Sector | ||||||
| Chemicals | 20.73% | 15.08% | 14.87% | 13.56% | 11.32% | |
| Operating Profit Margin, Industry | ||||||
| Materials | 22.62% | 19.68% | 21.62% | 14.41% | 10.43% | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 3,567,700 ÷ 23,051,900 = 15.48%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Sherwin-Williams Co. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Sherwin-Williams Co., net profit margin 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 income | 2,388,800) | 2,020,100) | 1,864,400) | 2,030,400) | 1,541,300) | |
| Net sales | 23,051,900) | 22,148,900) | 19,944,600) | 18,361,700) | 17,900,800) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 10.36% | 9.12% | 9.35% | 11.06% | 8.61% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Linde plc | 18.87% | 12.43% | 12.42% | 9.18% | 8.09% | |
| Net Profit Margin, Sector | ||||||
| Chemicals | 15.36% | 11.11% | 11.22% | 9.94% | 8.29% | |
| Net Profit Margin, Industry | ||||||
| Materials | 13.25% | 12.31% | 13.59% | 8.58% | 5.93% | |
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 profit margin = 100 × Net income ÷ Net sales
= 100 × 2,388,800 ÷ 23,051,900 = 10.36%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Sherwin-Williams Co. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Return on Equity (ROE)
Sherwin-Williams Co., ROE 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 income | 2,388,800) | 2,020,100) | 1,864,400) | 2,030,400) | 1,541,300) | |
| Shareholders’ equity | 3,715,800) | 3,102,100) | 2,437,200) | 3,610,800) | 4,123,300) | |
| Profitability Ratio | ||||||
| ROE1 | 64.29% | 65.12% | 76.50% | 56.23% | 37.38% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Linde plc | 15.61% | 10.36% | 8.69% | 5.29% | 4.66% | |
| ROE, Sector | ||||||
| Chemicals | 19.77% | 14.30% | 12.24% | 8.90% | 7.19% | |
| ROE, Industry | ||||||
| Materials | 17.36% | 16.42% | 16.54% | 8.40% | 5.74% | |
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
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 2,388,800 ÷ 3,715,800 = 64.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Sherwin-Williams Co. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
Sherwin-Williams Co., ROA 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 income | 2,388,800) | 2,020,100) | 1,864,400) | 2,030,400) | 1,541,300) | |
| Total assets | 22,954,400) | 22,594,000) | 20,666,700) | 20,401,600) | 20,496,200) | |
| Profitability Ratio | ||||||
| ROA1 | 10.41% | 8.94% | 9.02% | 9.95% | 7.52% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Linde plc | 7.67% | 5.21% | 4.69% | 2.83% | 2.64% | |
| ROA, Sector | ||||||
| Chemicals | 8.28% | 6.03% | 5.56% | 4.17% | 3.57% | |
| ROA, Industry | ||||||
| Materials | 6.68% | 6.28% | 6.65% | 3.40% | 2.43% | |
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
ROA = 100 × Net income ÷ Total assets
= 100 × 2,388,800 ÷ 22,954,400 = 10.41%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Sherwin-Williams Co. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |