Sherwin-Williams Co (SHW)
Total asset 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 |
| Total assets | US$ in thousands | 22,954,000 | 22,594,000 | 20,667,000 | 20,401,600 | 20,496,200 |
| Total asset turnover | 0.98 | 0.96 | 0.94 | 0.88 | 0.87 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $22,560,300K ÷ $22,954,000K
= 0.98
The total asset turnover ratio measures the company's ability to generate sales from its assets. A higher total asset turnover ratio indicates that the company is more efficient in utilizing its assets to generate revenue.
For Sherwin-Williams Co., the total asset turnover has been showing a positive trend over the past five years, increasing from 0.87 in 2019 to 1.00 in 2023. This improvement suggests that the company has become more efficient in utilizing its assets to generate sales.
With a total asset turnover ratio of 1.00 in 2023, it implies that Sherwin-Williams generated $1.00 in revenue for every $1.00 invested in total assets during the year. This indicates a strong efficiency in asset utilization and implies that the company is effectively managing its assets to drive sales.
Overall, the increasing trend in the total asset turnover ratio for Sherwin-Williams Co. demonstrates the company's improved efficiency in generating sales from its total assets over the years, showcasing effective asset management and operational performance.
Peer comparison
Dec 31, 2023