Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Turnover Ratios
Inventory turnover 5.20 5.24 5.22 5.09 5.28 5.61 5.27 4.76 4.88 4.99 5.08 5.07 5.92 5.99 5.84 5.39 5.37
Receivables turnover 9.67 7.75 7.55 8.18 9.34 7.83 7.36 7.77 8.64 7.48 6.97 7.29 8.48 7.57 7.58 7.82 8.84
Payables turnover 5.28 4.68 4.79 4.93 5.31 5.19 5.16 5.13 5.26 4.53 4.10 4.13 4.74 4.07 4.21 4.50 4.57
Working capital turnover 1,996.60 1,022.67
Average No. Days
Average inventory processing period 70 70 70 72 69 65 69 77 75 73 72 72 62 61 62 68 68
Add: Average receivable collection period 38 47 48 45 39 47 50 47 42 49 52 50 43 48 48 47 41
Operating cycle 108 117 118 117 108 112 119 124 117 122 124 122 105 109 110 115 109
Less: Average payables payment period 69 78 76 74 69 70 71 71 69 81 89 88 77 90 87 81 80
Cash conversion cycle 39 39 42 43 39 42 48 53 48 41 35 34 28 19 23 34 29

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

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 Q2 2024 to Q3 2024 but then deteriorated significantly from Q3 2024 to Q4 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Sherwin-Williams Co. receivables turnover ratio improved from Q2 2024 to Q3 2024 and from Q3 2024 to Q4 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Sherwin-Williams Co. payables turnover ratio decreased from Q2 2024 to Q3 2024 but then increased from Q3 2024 to Q4 2024 exceeding Q2 2024 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.
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 Q2 2024 to Q3 2024 and from Q3 2024 to Q4 2024.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Sherwin-Williams Co. operating cycle improved from Q2 2024 to Q3 2024 and from Q3 2024 to Q4 2024.
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. Sherwin-Williams Co. number of days of payables outstanding increased from Q2 2024 to Q3 2024 but then decreased significantly from Q3 2024 to Q4 2024.
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 (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Cost of goods sold 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 2,882,400 3,007,100 2,968,400 2,544,000 2,360,100 2,666,900 2,395,100 2,257,000
Inventories 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 1,927,200 1,816,000 1,804,100 1,847,300 1,804,100 1,672,800 1,788,600 1,954,800
Short-term Activity Ratio
Inventory turnover1 5.20 5.24 5.22 5.09 5.28 5.61 5.27 4.76 4.88 4.99 5.08 5.07 5.92 5.99 5.84 5.39 5.37
Benchmarks
Inventory Turnover, Competitors2
Linde plc 8.81 8.27 8.22 8.23 8.27 8.42 8.88 9.29 9.83 10.75 10.66 10.36 10.12 9.86 9.56 9.20 8.90

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 2024 Calculation
Inventory turnover = (Cost of goods soldQ4 2024 + Cost of goods soldQ3 2024 + Cost of goods soldQ2 2024 + Cost of goods soldQ1 2024) ÷ Inventories
= (2,724,000 + 3,135,000 + 3,208,100 + 2,836,300) ÷ 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 Q2 2024 to Q3 2024 but then deteriorated significantly from Q3 2024 to Q4 2024.

Receivables Turnover

Sherwin-Williams Co., receivables turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Net sales 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 4,762,100 5,146,700 5,379,800 4,656,000 4,488,800 5,122,200 4,604,000 4,146,700
Accounts receivable, net 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 2,352,400 2,598,000 2,590,600 2,414,100 2,078,100 2,454,500 2,472,500 2,291,500
Short-term Activity Ratio
Receivables turnover1 9.67 7.75 7.55 8.18 9.34 7.83 7.36 7.77 8.64 7.48 6.97 7.29 8.48 7.57 7.58 7.82 8.84
Benchmarks
Receivables Turnover, Competitors2
Linde plc 7.14 6.78 6.56 6.54 6.96 6.92 6.90 7.02 7.32 7.34 6.79 6.56 6.84 6.82 6.67 6.70 6.54

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 2024 Calculation
Receivables turnover = (Net salesQ4 2024 + Net salesQ3 2024 + Net salesQ2 2024 + Net salesQ1 2024) ÷ Accounts receivable, net
= (5,297,200 + 6,162,500 + 6,271,500 + 5,367,300) ÷ 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 Q2 2024 to Q3 2024 and from Q3 2024 to Q4 2024.

Payables Turnover

Sherwin-Williams Co., payables turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Cost of goods sold 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 2,882,400 3,007,100 2,968,400 2,544,000 2,360,100 2,666,900 2,395,100 2,257,000
Accounts payable 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 2,403,000 2,675,400 2,502,800 2,217,000 2,117,800 2,056,200 1,848,400 1,958,400
Short-term Activity Ratio
Payables turnover1 5.28 4.68 4.79 4.93 5.31 5.19 5.16 5.13 5.26 4.53 4.10 4.13 4.74 4.07 4.21 4.50 4.57
Benchmarks
Payables Turnover, Competitors2
Linde plc 6.84 6.06 6.02 5.99 5.79 6.36 6.20 6.49 6.49 6.50 5.66 5.40 5.01 5.44 5.14 5.30 4.97

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 2024 Calculation
Payables turnover = (Cost of goods soldQ4 2024 + Cost of goods soldQ3 2024 + Cost of goods soldQ2 2024 + Cost of goods soldQ1 2024) ÷ Accounts payable
= (2,724,000 + 3,135,000 + 3,208,100 + 2,836,300) ÷ 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 decreased from Q2 2024 to Q3 2024 but then increased from Q3 2024 to Q4 2024 exceeding Q2 2024 level.

Working Capital Turnover

Sherwin-Williams Co., working capital turnover calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in thousands)
Current assets 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 5,053,700 5,378,400 5,185,700 5,109,600 4,591,400 5,175,600 4,883,200 4,928,000
Less: Current liabilities 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 5,719,500 6,478,500 6,190,400 5,651,600 4,594,400 4,358,300 4,459,600 5,220,200
Working capital (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) (665,800) (1,100,100) (1,004,700) (542,000) (3,000) 817,300 423,600 (292,200)
 
Net sales 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 4,762,100 5,146,700 5,379,800 4,656,000 4,488,800 5,122,200 4,604,000 4,146,700
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: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 2024 Calculation
Working capital turnover = (Net salesQ4 2024 + Net salesQ3 2024 + Net salesQ2 2024 + Net salesQ1 2024) ÷ Working capital
= (5,297,200 + 6,162,500 + 6,271,500 + 5,367,300) ÷ -1,407,900 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Sherwin-Williams Co., average inventory processing period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Inventory turnover 5.20 5.24 5.22 5.09 5.28 5.61 5.27 4.76 4.88 4.99 5.08 5.07 5.92 5.99 5.84 5.39 5.37
Short-term Activity Ratio (no. days)
Average inventory processing period1 70 70 70 72 69 65 69 77 75 73 72 72 62 61 62 68 68
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Linde plc 41 44 44 44 44 43 41 39 37 34 34 35 36 37 38 40 41

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 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.

Average Receivable Collection Period

Sherwin-Williams Co., average receivable collection period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Receivables turnover 9.67 7.75 7.55 8.18 9.34 7.83 7.36 7.77 8.64 7.48 6.97 7.29 8.48 7.57 7.58 7.82 8.84
Short-term Activity Ratio (no. days)
Average receivable collection period1 38 47 48 45 39 47 50 47 42 49 52 50 43 48 48 47 41
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Linde plc 51 54 56 56 52 53 53 52 50 50 54 56 53 54 55 54 56

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 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 Q2 2024 to Q3 2024 and from Q3 2024 to Q4 2024.

Operating Cycle

Sherwin-Williams Co., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Average inventory processing period 70 70 70 72 69 65 69 77 75 73 72 72 62 61 62 68 68
Average receivable collection period 38 47 48 45 39 47 50 47 42 49 52 50 43 48 48 47 41
Short-term Activity Ratio
Operating cycle1 108 117 118 117 108 112 119 124 117 122 124 122 105 109 110 115 109
Benchmarks
Operating Cycle, Competitors2
Linde plc 92 98 100 100 96 96 94 91 87 84 88 91 89 91 93 94 97

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 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. Sherwin-Williams Co. operating cycle improved from Q2 2024 to Q3 2024 and from Q3 2024 to Q4 2024.

Average Payables Payment Period

Sherwin-Williams Co., average payables payment period calculation (quarterly data)

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Payables turnover 5.28 4.68 4.79 4.93 5.31 5.19 5.16 5.13 5.26 4.53 4.10 4.13 4.74 4.07 4.21 4.50 4.57
Short-term Activity Ratio (no. days)
Average payables payment period1 69 78 76 74 69 70 71 71 69 81 89 88 77 90 87 81 80
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Linde plc 53 60 61 61 63 57 59 56 56 56 64 68 73 67 71 69 73

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 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. Sherwin-Williams Co. number of days of payables outstanding increased from Q2 2024 to Q3 2024 but then decreased significantly from Q3 2024 to Q4 2024.

Cash Conversion Cycle

Sherwin-Williams Co., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Average inventory processing period 70 70 70 72 69 65 69 77 75 73 72 72 62 61 62 68 68
Average receivable collection period 38 47 48 45 39 47 50 47 42 49 52 50 43 48 48 47 41
Average payables payment period 69 78 76 74 69 70 71 71 69 81 89 88 77 90 87 81 80
Short-term Activity Ratio
Cash conversion cycle1 39 39 42 43 39 42 48 53 48 41 35 34 28 19 23 34 29
Benchmarks
Cash Conversion Cycle, Competitors2
Linde plc 39 38 39 39 33 39 35 35 31 28 24 23 16 24 22 25 24

Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q4 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.