Sherwin-Williams Co (SHW)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,161,700 | 3,397,200 | 3,083,700 | 3,373,800 | 2,808,800 |
| Revenue | US$ in thousands | 22,560,300 | 21,735,200 | 19,493,500 | 18,002,200 | 17,900,800 |
| Operating profit margin | 18.45% | 15.63% | 15.82% | 18.74% | 15.69% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $4,161,700K ÷ $22,560,300K
= 18.45%
The operating profit margin of Sherwin-Williams Co. has exhibited fluctuations over the past five years. In 2023, the operating profit margin increased to 15.67%, representing a positive trend compared to the previous year's margin of 13.52%. This improvement indicates that the company was more effective in generating operating profits from its revenue in 2023.
When compared to 2021 and 2020, where the operating profit margins were 13.34% and 15.54% respectively, the recent increase in 2023 indicates a recovery from the slight decline in 2021 and a rebound from the peak in 2020. This suggests that Sherwin-Williams Co. managed to enhance its operational efficiency in 2023 after facing challenges in the previous years.
Moreover, the operating profit margin in 2023 also outperformed the margin of 13.55% recorded in 2019, further emphasizing the company's progress in profitability over the past five years. Overall, the upward trend in the operating profit margin reflects Sherwin-Williams Co.'s ability to effectively manage its costs and operations to generate higher profits relative to its revenue in 2023, showcasing a positive performance in the most recent period.
Peer comparison
Dec 31, 2023