Sherwin-Williams Co (SHW)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,109,900 | 2,573,100 | 2,248,600 | 2,519,200 | 1,981,800 |
| Revenue | US$ in thousands | 22,560,300 | 21,735,200 | 19,493,500 | 18,002,200 | 17,900,800 |
| Pretax margin | 13.78% | 11.84% | 11.54% | 13.99% | 11.07% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,109,900K ÷ $22,560,300K
= 13.78%
The pretax margin of Sherwin-Williams Co. has shown some variability over the past five years, ranging from 11.07% in 2019 to 13.72% in 2020. In 2023, the pretax margin increased to 13.49% compared to 11.62% in 2022 and 11.27% in 2021. This indicates that the company's profitability before accounting for taxes improved in 2023.
Overall, the pretax margin reflects Sherwin-Williams Co.'s ability to generate operating income relative to its total revenue, with higher percentages indicating more efficiency in managing costs and expenses. The increasing trend in pretax margin over the years suggests an enhanced profitability performance for the company.
Peer comparison
Dec 31, 2023