Sherwin-Williams Co (SHW)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 10,758,100 | 9,325,100 | 8,542,700 | 8,682,600 | 8,036,100 |
| Revenue | US$ in thousands | 22,560,300 | 21,735,200 | 19,493,500 | 18,002,200 | 17,900,800 |
| Gross profit margin | 47.69% | 42.90% | 43.82% | 48.23% | 44.89% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $10,758,100K ÷ $22,560,300K
= 47.69%
The gross profit margin of Sherwin-Williams Co. has fluctuated over the past five years. In 2023, the gross profit margin improved to 46.67%, representing an increase from the previous year's margin of 42.10%. This indicates that the company was able to generate a higher percentage of revenue after deducting the cost of goods sold compared to the prior year.
However, it is worth noting that the gross profit margin in 2023 is still lower than the margins reported in both 2020 and 2019, which were 47.29% and 44.89%, respectively. This suggests that Sherwin-Williams Co. may have experienced some challenges in managing its production costs or pricing strategies in the most recent year.
Overall, while the improvement in gross profit margin from 2022 to 2023 is a positive sign, stakeholders should monitor future trends in the company's cost structure and pricing decisions to ensure sustainable profitability levels in the long run.
Peer comparison
Dec 31, 2023