Sherwin-Williams Co (SHW)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 22,557,900 | 22,588,100 | 22,534,900 | 22,159,400 | 21,735,200 | 21,387,100 | 20,505,700 | 20,027,700 | 19,578,700 | 19,305,400 | 19,277,600 | 18,501,700 | 18,080,200 | 17,705,800 | 17,534,900 | 17,893,700 | 17,900,800 | 17,850,600 | 17,714,400 | 17,610,400 |
| Property, plant and equipment | US$ in thousands | 2,836,800 | 2,580,600 | 2,442,500 | 2,362,000 | 2,207,000 | 2,041,200 | 1,961,900 | 1,907,300 | 1,867,300 | 1,827,200 | 1,806,300 | 1,780,400 | 1,834,500 | 1,780,000 | 1,798,600 | 1,829,500 | 1,835,200 | 1,798,300 | 1,773,600 | 1,763,000 |
| Fixed asset turnover | 7.95 | 8.75 | 9.23 | 9.38 | 9.85 | 10.48 | 10.45 | 10.50 | 10.49 | 10.57 | 10.67 | 10.39 | 9.86 | 9.95 | 9.75 | 9.78 | 9.75 | 9.93 | 9.99 | 9.99 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $22,557,900K ÷ $2,836,800K
= 7.95
The fixed asset turnover of Sherwin-Williams Co. has been gradually declining over the past few quarters, indicating that the company is generating slightly less revenue from its fixed assets. The decrease from 10.64 in Q1 2022 to 9.57 in Q1 2023 suggests that Sherwin-Williams is becoming slightly less efficient in utilizing its fixed assets to generate sales.
While a fixed asset turnover above 1 indicates that the company is generating revenue from its fixed assets, a decrease in this ratio could signify potential inefficiencies in asset utilization or changes in the business operating model. Further analysis would be necessary to determine the exact reasons behind this trend and whether it is a cause for concern or part of a strategic shift in the company's operations.
Peer comparison
Dec 31, 2023
See also:
Sherwin-Williams Co Net Fixed Asset Turnover (Quarterly Data)