Sherwin-Williams Co (SHW)
Receivables 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 |
| Receivables | US$ in thousands | 2,467,900 | 2,563,600 | 2,352,400 | 2,078,100 | 2,088,900 |
| Receivables turnover | 9.14 | 8.48 | 8.29 | 8.66 | 8.57 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $22,560,300K ÷ $2,467,900K
= 9.14
The receivables turnover of Sherwin-Williams Co., a measure of how efficiently the company is collecting payments from its customers, has been relatively stable over the past five years. The trend shows that the company's ability to convert its accounts receivable into cash has been consistent, with slight fluctuations year over year.
In 2023, the receivables turnover ratio improved to 9.34, indicating that the company collected its outstanding receivables more frequently during the year compared to the previous year. This suggests an increase in efficiency in collecting payments from customers.
On the other hand, in 2022, the receivables turnover ratio decreased slightly to 8.64 but remained at a relatively high level. In 2021 and 2020, the ratios were 8.48 and 8.84, respectively, showing a consistent performance in collecting receivables during those years.
Overall, the company has maintained a healthy receivables turnover ratio above 8 in the past five years, indicating that Sherwin-Williams Co. has been effective in managing its accounts receivable and converting them into cash in a timely manner.
Peer comparison
Dec 31, 2023