Sherwin-Williams Co (SHW)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,681,400 | 2,388,800 | 2,020,100 | 1,864,400 | 2,030,400 |
| Total assets | US$ in thousands | 23,632,600 | 22,954,400 | 22,594,000 | 20,666,700 | 20,401,600 |
| ROA | 11.35% | 10.41% | 8.94% | 9.02% | 9.95% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $2,681,400K ÷ $23,632,600K
= 11.35%
To analyze Sherwin-Williams Co's return on assets (ROA) based on the provided data, we observe a trend over the years.
- As of December 31, 2020, the ROA was 9.95%.
- The ROA decreased to 9.02% as of December 31, 2021, and further declined to 8.94% by December 31, 2022.
- However, there was a notable improvement in ROA as of December 31, 2023, reaching 10.41% and further increasing to 11.35% by December 31, 2024.
The overall trend indicates some fluctuations in the company's ability to generate profits from its assets. The initial decline in ROA in 2021 and 2022 may suggest a temporary decrease in efficiency or profitability. However, the subsequent improvement in 2023 and 2024 demonstrates a positive turnaround, indicating better utilization of assets to generate returns.
It is essential to monitor future ROA trends to assess the company's efficiency in utilizing its assets effectively and generating profits for its shareholders.
Peer comparison
Dec 31, 2024