Sherwin-Williams Co (SHW)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | 1,996.60 | — | — | 1,022.67 | — | — | — | — | — | — | — | 22.01 | 41.86 | — |
The activity ratios of Sherwin-Williams Co indicate the efficiency of the company in managing its resources.
1. Inventory turnover: The inventory turnover ratio shows how many times a company's inventory is sold and replaced over a period. Sherwin-Williams Co's inventory turnover has been relatively stable, ranging from 4.76 to 5.99 over the past few years. A higher turnover ratio suggests that the company is efficiently managing its inventory levels.
2. Receivables turnover: Unfortunately, receivables turnover data is not available for Sherwin-Williams Co in the provided dataset. This ratio measures how efficiently a company is collecting on its credit sales, so the absence of this data restricts our ability to assess the company's effectiveness in collecting outstanding receivables.
3. Payables turnover: Similar to receivables turnover, payables turnover data is missing in the dataset. The payables turnover ratio reflects how quickly a company pays its suppliers. Absence of this data prevents understanding of Sherwin-Williams Co's payment practices and its liquidity position.
4. Working capital turnover: The working capital turnover ratio measures how effectively a company generates revenue relative to its working capital. Sherwin-Williams Co's working capital turnover varied significantly, with notable values such as 41.86, 22.01, and large figures like 1,022.67 and 1,996.60 in certain periods. A higher turnover ratio indicates efficient utilization of working capital to generate sales.
In conclusion, Sherwin-Williams Co's inventory turnover suggests good control over its inventory, while the analysis of receivables turnover and payables turnover ratios is limited due to missing data. The working capital turnover figures imply varying efficiency in converting working capital into revenues over different reporting periods.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.16 | 69.65 | 69.93 | 71.68 | 69.17 | 65.08 | 69.31 | 76.62 | 74.76 | 73.17 | 71.81 | 72.01 | 61.69 | 60.93 | 62.48 | 67.66 | 68.03 | 64.01 | 68.61 | 72.69 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, Sherwin-Williams Co's days of inventory on hand (DOH) have shown some fluctuations over the years, ranging from a low of 60.93 days on September 30, 2021, to a high of 76.62 days on March 31, 2023. The company's DOH indicates the average number of days the inventory is held before being sold, with higher values suggesting a possible excess inventory holding or slower turnover.
Unfortunately, the information for days of sales outstanding (DSO) and number of days of payables for Sherwin-Williams Co is not available for the periods provided. DSO would have shown the average number of days it takes for the company to collect on its accounts receivable, reflecting its efficiency in managing receivables. On the other hand, the number of days of payables would have revealed how long the company takes to pay its suppliers, illustrating its ability to manage its payable obligations effectively.
To assess Sherwin-Williams Co's overall liquidity and efficiency in managing its working capital, it would be beneficial to analyze all three activity ratios together to gain a comprehensive understanding of the company's operational performance. Improvements in managing inventory levels, collecting receivables promptly, and optimizing payment terms with suppliers could enhance the company's overall financial health.
See also:
Sherwin-Williams Co Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 5.17 | 9.40 | 9.57 | 10.04 | 10.62 | 10.59 | 10.64 | 5.41 | 5.46 | 5.50 | 5.38 | 10.01 | 10.11 | 9.86 | 9.84 |
| Total asset turnover | 0.98 | 0.96 | 0.97 | 0.98 | 1.00 | 1.00 | 0.99 | 0.98 | 0.98 | 0.97 | 0.94 | 0.93 | 0.97 | 0.95 | 0.96 | 0.92 | 0.90 | 0.86 | 0.87 | 0.88 |
Sherwin-Williams Co's long-term activity ratios provide insight into how efficiently the company is utilizing its assets to generate revenue.
1. Fixed asset turnover: This ratio measures how effectively the company is using its fixed assets to generate sales. The trend shows an increase in fixed asset turnover from March 2020 to March 2022, indicating improved efficiency in utilizing fixed assets. However, there is a noticeable decline in the most recent periods, suggesting a potential decrease in productivity or changes in the asset base that may have impacted operations.
2. Total asset turnover: This ratio indicates the company's overall efficiency in generating sales from all its assets. The trend for Sherwin-Williams Co shows fluctuations over the years, with some periods demonstrating improvements in asset turnover. Notably, from September 2023 to December 2023, there was a consistent increase in total asset turnover, suggesting a more efficient use of assets to generate revenue.
Overall, analyzing these long-term activity ratios assists in evaluating Sherwin-Williams Co's operational efficiency and asset utilization over time, highlighting potential areas for further investigation and strategic decision-making.
See also:
Sherwin-Williams Co Long-term (Investment) Activity Ratios (Quarterly Data)