Sherwin-Williams Co (SHW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 47.69% | 46.23% | 44.89% | 43.74% | 42.90% | 41.95% | 41.56% | 42.36% | 43.63% | 45.54% | 47.24% | 48.13% | 48.02% | 47.71% | 46.87% | 45.77% | 44.89% | 43.83% | 42.96% | 42.40% |
| Operating profit margin | 18.45% | 17.96% | 17.10% | 16.16% | 15.63% | 15.03% | 14.32% | 14.83% | 15.75% | 17.26% | 18.76% | 19.22% | 18.66% | 17.47% | 16.58% | 16.08% | 15.69% | 16.10% | 15.38% | 14.92% |
| Pretax margin | 13.79% | 13.86% | 13.31% | 12.31% | 11.84% | 11.16% | 10.35% | 10.99% | 11.48% | 12.66% | 14.05% | 14.25% | 13.93% | 13.06% | 12.24% | 11.60% | 11.07% | 10.01% | 8.43% | 7.69% |
| Net profit margin | 10.59% | 10.71% | 10.39% | 9.60% | 9.29% | 9.06% | 8.56% | 9.12% | 9.52% | 10.19% | 11.26% | 11.45% | 11.23% | 10.57% | 9.94% | 9.04% | 8.61% | 7.81% | 6.61% | 6.27% |
Over the past eight quarters, Sherwin-Williams Co. has demonstrated a consistent improvement in its profitability ratios. The gross profit margin has shown an increasing trend, indicating the company's ability to effectively manage its production and distribution costs. This is a positive sign as it suggests that Sherwin-Williams is efficiently generating profit from its sales.
Furthermore, the operating profit margin has also displayed an upward trajectory, reflecting the company's effectiveness in controlling its operating expenses. The growth in this ratio signifies Sherwin-Williams' strong operational efficiency and management capabilities in generating profits from its core business activities.
The pretax margin, which represents the company's profitability before accounting for taxes, has also shown improvement quarter over quarter. This indicates that Sherwin-Williams is effectively managing its tax liabilities while maximizing its pre-tax earnings.
Lastly, the net profit margin, which measures the portion of revenue that translates into net income, has exhibited a consistent increase. This suggests that Sherwin-Williams has been successful in managing its expenses, including taxes and interest payments, to generate higher net profits from its operations.
Overall, Sherwin-Williams Co.'s profitability ratios reveal a positive financial performance characterized by improving margins across the board, reflecting the company's efficient operations and sound financial management.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 10.41% | 10.51% | 10.11% | 9.19% | 8.94% | 8.71% | 7.96% | 8.40% | 9.02% | 9.49% | 10.58% | 10.37% | 9.95% | 9.00% | 8.50% | 7.86% | 7.52% | 6.68% | 5.53% | 5.27% |
| Return on total capital | 29.17% | 29.01% | 26.95% | 24.60% | 23.35% | 22.60% | 22.84% | 23.47% | 23.42% | 26.97% | 29.11% | 27.18% | 24.08% | 21.28% | 20.48% | 20.90% | 19.15% | 17.75% | 16.93% | 14.15% |
| Return on equity (ROE) | 64.29% | 63.99% | 64.51% | 67.16% | 65.12% | 74.59% | 78.89% | 81.71% | 76.50% | 73.13% | 76.43% | 68.81% | 56.23% | 44.49% | 45.03% | 49.19% | 37.38% | 34.64% | 31.25% | 31.90% |
Profitability ratios provide insights into a company's ability to generate earnings in relation to its assets, capital, and equity.
- The Operating Return on Assets (Operating ROA) for Sherwin-Williams Co. has shown a steady increase from 11.23% in Q2 2022 to 15.74% in Q4 2023, indicating efficient utilization of assets to generate operating profits.
- Return on Assets (ROA) has also exhibited a positive trend, increasing from 8.40% in Q1 2022 to 10.51% in Q3 2023, showing the company's enhanced ability to generate profits from its total assets.
- Return on Total Capital has demonstrated consistent growth, reaching 26.62% in Q4 2023 from 19.34% in Q2 2022, reflecting the company's effective capital utilization to generate returns.
- Return on Equity (ROE) reflects a remarkable improvement, with a noteworthy uptick from 65.12% in Q4 2022 to 64.29% in Q4 2023, indicating a higher return for shareholders' investments in the company.
Overall, the profitability ratios suggest that Sherwin-Williams Co. has been efficiently managing its assets, capital, and equity to enhance profitability and provide favorable returns to its stakeholders.