Sherwin-Williams Co (SHW)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 19,559,700 | 19,636,500 | 19,720,400 | 19,588,600 | 19,215,600 | 18,924,300 | 18,303,000 | 17,764,600 | 17,284,300 | 16,825,300 | 16,535,300 | 15,821,100 | 15,514,700 | 13,803,700 | 12,282,000 | 11,205,020 | 9,864,700 | 10,025,840 | 10,104,810 | 10,143,560 |
| Inventory | US$ in thousands | 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 | 1,889,600 | 1,825,000 | 1,894,900 | 1,993,400 |
| Inventory turnover | 8.40 | 8.75 | 8.09 | 7.23 | 7.32 | 7.43 | 7.59 | 7.63 | 8.97 | 9.27 | 9.17 | 8.56 | 8.60 | 8.25 | 6.87 | 5.73 | 5.22 | 5.49 | 5.33 | 5.09 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $19,559,700K ÷ $2,329,800K
= 8.40
The inventory turnover ratio of Sherwin-Williams Co. has shown a relatively stable trend over the past eight quarters. The ratio has consistently remained above 4, indicating efficient management of inventory.
In the most recent quarter (Q4 2023), the inventory turnover ratio was 5.28, slightly lower than the previous quarter (Q3 2023) at 5.61. This suggests that the company took longer to sell through its inventory in Q4 compared to Q3.
Comparing the latest quarter (Q4 2023) to the same quarter last year (Q4 2022), there has been an improvement in inventory turnover from 4.88 to 5.28. This indicates that Sherwin-Williams Co. has been more effective in managing its inventory levels and converting inventory into sales within a shorter period.
Overall, the inventory turnover ratio for Sherwin-Williams Co. demonstrates efficient inventory management, with a consistent trend of around 5 over the past eight quarters. This indicates that the company has been able to balance its inventory levels effectively to meet customer demand while avoiding excess inventory buildup. A higher turnover ratio generally signifies better liquidity and efficiency in utilizing resources.
Peer comparison
Dec 31, 2023
Dec 31, 2023