Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 5.20 5.28 4.88 5.92 5.37
Receivables turnover 9.67 9.34 8.64 8.48 8.84
Payables turnover 5.28 5.31 5.26 4.74 4.57
Working capital turnover
Average No. Days
Average inventory processing period 70 69 75 62 68
Add: Average receivable collection period 38 39 42 43 41
Operating cycle 108 108 117 105 109
Less: Average payables payment period 69 69 69 77 80
Cash conversion cycle 39 39 48 28 29

Based on: 10-K (reporting date: 2024-12-31), 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Sherwin-Williams Co. inventory turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Sherwin-Williams Co. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Sherwin-Williams Co. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Sherwin-Williams Co. number of days of inventory outstanding improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Sherwin-Williams Co. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

Sherwin-Williams Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Cost of goods sold 11,903,400 12,293,800 12,823,800 11,401,900 9,679,100
Inventories 2,288,100 2,329,800 2,626,500 1,927,200 1,804,100
Short-term Activity Ratio
Inventory turnover1 5.20 5.28 4.88 5.92 5.37
Benchmarks
Inventory Turnover, Competitors2
Linde plc 8.81 8.27 9.83 10.12 8.90
Inventory Turnover, Sector
Chemicals 6.86 6.70 7.01 7.91 7.09
Inventory Turnover, Industry
Materials 4.24 4.33 4.84 5.27 4.94

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 11,903,400 ÷ 2,288,100 = 5.20

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Sherwin-Williams Co. inventory turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Receivables Turnover

Sherwin-Williams Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Net sales 23,098,500 23,051,900 22,148,900 19,944,600 18,361,700
Accounts receivable, net 2,388,800 2,467,900 2,563,600 2,352,400 2,078,100
Short-term Activity Ratio
Receivables turnover1 9.67 9.34 8.64 8.48 8.84
Benchmarks
Receivables Turnover, Competitors2
Linde plc 7.14 6.96 7.32 6.84 6.54
Receivables Turnover, Sector
Chemicals 8.00 7.78 7.79 7.41 7.30
Receivables Turnover, Industry
Materials 10.75 9.38 9.26 9.18 8.38

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= 23,098,500 ÷ 2,388,800 = 9.67

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Sherwin-Williams Co. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Payables Turnover

Sherwin-Williams Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Cost of goods sold 11,903,400 12,293,800 12,823,800 11,401,900 9,679,100
Accounts payable 2,253,200 2,315,000 2,436,500 2,403,000 2,117,800
Short-term Activity Ratio
Payables turnover1 5.28 5.31 5.26 4.74 4.57
Benchmarks
Payables Turnover, Competitors2
Linde plc 6.84 5.79 6.49 5.01 4.97
Payables Turnover, Sector
Chemicals 6.10 5.58 5.94 4.90 4.81
Payables Turnover, Industry
Materials 6.20 5.83 5.82 5.41 5.49

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 11,903,400 ÷ 2,253,200 = 5.28

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Sherwin-Williams Co. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Working Capital Turnover

Sherwin-Williams Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Current assets 5,400,800 5,512,900 5,907,700 5,053,700 4,591,400
Less: Current liabilities 6,808,700 6,626,900 5,960,700 5,719,500 4,594,400
Working capital (1,407,900) (1,114,000) (53,000) (665,800) (3,000)
 
Net sales 23,098,500 23,051,900 22,148,900 19,944,600 18,361,700
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Linde plc
Working Capital Turnover, Sector
Chemicals
Working Capital Turnover, Industry
Materials 17.02 19.50 13.54 15.37 19.50

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Working capital turnover = Net sales ÷ Working capital
= 23,098,500 ÷ -1,407,900 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Sherwin-Williams Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 5.20 5.28 4.88 5.92 5.37
Short-term Activity Ratio (no. days)
Average inventory processing period1 70 69 75 62 68
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Linde plc 41 44 37 36 41
Average Inventory Processing Period, Sector
Chemicals 53 54 52 46 51
Average Inventory Processing Period, Industry
Materials 86 84 75 69 74

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.20 = 70

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Sherwin-Williams Co. number of days of inventory outstanding improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Average Receivable Collection Period

Sherwin-Williams Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 9.67 9.34 8.64 8.48 8.84
Short-term Activity Ratio (no. days)
Average receivable collection period1 38 39 42 43 41
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Linde plc 51 52 50 53 56
Average Receivable Collection Period, Sector
Chemicals 46 47 47 49 50
Average Receivable Collection Period, Industry
Materials 34 39 39 40 44

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.67 = 38

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Sherwin-Williams Co. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024.

Operating Cycle

Sherwin-Williams Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 70 69 75 62 68
Average receivable collection period 38 39 42 43 41
Short-term Activity Ratio
Operating cycle1 108 108 117 105 109
Benchmarks
Operating Cycle, Competitors2
Linde plc 92 96 87 89 97
Operating Cycle, Sector
Chemicals 99 101 99 95 101
Operating Cycle, Industry
Materials 120 123 114 109 118

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 70 + 38 = 108

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

Sherwin-Williams Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 5.28 5.31 5.26 4.74 4.57
Short-term Activity Ratio (no. days)
Average payables payment period1 69 69 69 77 80
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Linde plc 53 63 56 73 73
Average Payables Payment Period, Sector
Chemicals 60 65 61 74 76
Average Payables Payment Period, Industry
Materials 59 63 63 67 66

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.28 = 69

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

Sherwin-Williams Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 70 69 75 62 68
Average receivable collection period 38 39 42 43 41
Average payables payment period 69 69 69 77 80
Short-term Activity Ratio
Cash conversion cycle1 39 39 48 28 29
Benchmarks
Cash Conversion Cycle, Competitors2
Linde plc 39 33 31 16 24
Cash Conversion Cycle, Sector
Chemicals 39 36 38 21 25
Cash Conversion Cycle, Industry
Materials 61 60 51 42 52

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 70 + 3869 = 39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.