Sherwin-Williams Co (SHW)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 4,161,700 | 4,056,900 | 3,853,400 | 3,581,800 | 3,397,200 | 3,214,400 | 2,936,800 | 2,971,000 | 3,083,700 | 3,332,900 | 3,616,200 | 3,555,800 | 3,373,800 | 3,092,700 | 2,907,700 | 2,876,600 | 2,808,800 | 2,874,773 | 2,725,320 | 2,626,914 |
| Total assets | US$ in thousands | 22,954,000 | 23,004,500 | 23,166,100 | 23,129,900 | 22,594,000 | 22,245,800 | 22,052,800 | 21,730,400 | 20,667,000 | 20,736,600 | 20,519,600 | 20,435,000 | 20,401,600 | 20,809,700 | 20,494,500 | 20,570,300 | 20,496,200 | 20,864,300 | 21,186,100 | 20,961,600 |
| Operating ROA | 18.13% | 17.64% | 16.63% | 15.49% | 15.04% | 14.45% | 13.32% | 13.67% | 14.92% | 16.07% | 17.62% | 17.40% | 16.54% | 14.86% | 14.19% | 13.98% | 13.70% | 13.78% | 12.86% | 12.53% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,161,700K ÷ $22,954,000K
= 18.13%
Operating ROA is a key performance metric for Sherwin-Williams Co. as it measures the company's ability to generate operating profits from its assets. The trend analysis of the operating ROA shows consistent improvement over the quarters, indicating the company's efficient utilization of its assets to generate profits.
In Q4 2023, the operating ROA reached 15.74%, the highest among the quarters presented. This demonstrates the company's ability to generate $15.74 in operating profit for every $100 of assets deployed. This improvement from Q3 2023 (15.45%) and previous quarters suggests that Sherwin-Williams Co. has been effectively managing its assets to drive profitability.
The gradual increase in operating ROA from Q1 2022 (11.61%) to Q4 2023 reflects the company's focus on operational efficiency and profitability. The consistent growth in operating ROA over the quarters shows Sherwin-Williams Co.'s commitment to enhancing its asset utilization and operational performance.
Overall, the uptrend in Sherwin-Williams Co.'s operating ROA indicates a positive outlook for the company's financial performance, as it signifies improving profitability and operational efficiency. Investors and stakeholders may view this trend positively as it suggests that the company is effectively leveraging its assets to drive financial results.
Peer comparison
Dec 31, 2023