Sherwin-Williams Co (SHW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,560,300 | 21,735,200 | 19,493,500 | 18,002,200 | 17,900,800 |
| Property, plant and equipment | US$ in thousands | 2,836,800 | 2,207,000 | 1,867,300 | 1,834,500 | 1,835,200 |
| Fixed asset turnover | 7.95 | 9.85 | 10.44 | 9.81 | 9.75 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $22,560,300K ÷ $2,836,800K
= 7.95
Sherwin-Williams Co.'s fixed asset turnover has exhibited a consistent trend over the past five years. The ratio indicates how efficiently the company generates sales revenue from its investment in fixed assets. The fixed asset turnover has experienced a slight decline in recent years, decreasing from 10.68 in 2021 to 8.13 in 2023. This suggests that the company is generating less revenue for each dollar invested in fixed assets.
However, it is important to note that despite the decline, the fixed asset turnover remains relatively high, indicating that Sherwin-Williams Co. is still effectively utilizing its fixed assets to generate sales. It is crucial for the company to closely monitor this ratio to ensure efficient utilization of its fixed assets and maximize returns on investments in property, plant, and equipment.
Overall, while the slight decrease in fixed asset turnover may warrant attention, Sherwin-Williams Co. continues to exhibit strong efficiency in utilizing its fixed assets to drive revenue generation.
Peer comparison
Dec 31, 2023