Sherwin-Williams Co (SHW)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 11,903,400 | 11,882,900 | 11,948,400 | 12,108,600 | 12,293,800 | 12,587,000 | 12,844,500 | 12,899,500 | 12,823,800 | 12,709,500 | 12,258,600 | 11,803,700 | 11,401,900 | 10,879,600 | 10,539,400 | 9,966,100 | 9,679,100 | 9,539,400 | 9,514,600 | 9,815,920 |
| Inventory | US$ in thousands | 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 |
| 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 | 5.70 | 5.32 | 5.02 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,903,400K ÷ $2,288,100K
= 5.20
Sherwin-Williams Co's inventory turnover ratio has exhibited fluctuations over the years with values ranging from a low of 4.76 on March 31, 2023, to a high of 5.99 on September 30, 2021. The average inventory turnover ratio appears to be around 5.30, indicating that on average, the company is able to turn over its inventory approximately 5.30 times during the year.
A higher inventory turnover ratio suggests that Sherwin-Williams Co is managing its inventory efficiently by selling and restocking products quickly. This could be due to effective inventory management practices, demand forecasting, and supply chain efficiency. Conversely, a lower inventory turnover ratio may indicate overstocking, obsolescence, or declining demand for the company's products.
The downward trend observed in the most recent periods, where the inventory turnover ratio decreased from 5.24 on September 30, 2024, to 5.20 on December 31, 2024, and then further dropped to 4.88 on December 31, 2022, could potentially signal challenges in inventory management or changes in market conditions affecting product demand. It would be important for Sherwin-Williams Co to closely monitor its inventory levels and sales strategies to address any issues impacting inventory turnover.
Peer comparison
Dec 31, 2024
Dec 31, 2024