Sherwin-Williams Co (SHW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 22,954,000 | 22,594,000 | 20,667,000 | 20,401,600 | 20,496,200 |
| Operating ROA | 18.13% | 15.04% | 14.92% | 16.54% | 13.70% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $4,161,700K ÷ $22,954,000K
= 18.13%
Operating return on assets (Operating ROA) is a key financial ratio that indicates the efficiency of Sherwin-Williams Co. in generating operating profits relative to its total assets. The trend analysis of Operating ROA for the past five years shows a generally positive trajectory.
In 2023, Sherwin-Williams Co. achieved an Operating ROA of 15.74%, which represents an improvement from the previous year's ratio of 13.25%. This increase indicates that the company was able to generate more operating income per dollar of assets compared to the prior year.
Looking at the three-year trend from 2021 to 2023, there has been a steady increase in Operating ROA, demonstrating the company's improving operational efficiency and asset utilization over this period.
Furthermore, Sherwin-Williams Co.'s Operating ROA in 2023 outperformed the ratios recorded in both 2020 and 2019, showcasing a sustained growth in profitability relative to its asset base.
Overall, the rising trend in Operating ROA reflects positively on Sherwin-Williams Co.'s ability to effectively utilize its assets to generate operating profits, indicating improved operational performance and efficiency over the years.
Peer comparison
Dec 31, 2023