Sherwin-Williams Co (SHW)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,388,800 | 2,020,100 | 1,864,400 | 2,030,400 | 1,541,300 |
| Total assets | US$ in thousands | 22,954,000 | 22,594,000 | 20,667,000 | 20,401,600 | 20,496,200 |
| ROA | 10.41% | 8.94% | 9.02% | 9.95% | 7.52% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,388,800K ÷ $22,954,000K
= 10.41%
Over the past five years, Sherwin-Williams Co. has demonstrated a varying trend in its return on assets (ROA) ratio. The company's ROA has shown a consistent improvement from 7.52% in 2019 to 10.41% in 2023, indicating the company's ability to generate more profits relative to its total assets.
A higher ROA suggests that Sherwin-Williams Co. is effectively utilizing its assets to generate profits for the company and its shareholders. The 2023 ROA of 10.41% is the highest among the five years presented, indicating improved asset efficiency and profitability for the company in the most recent fiscal year.
It is important for investors and stakeholders to monitor ROA trends as it provides insights into the company's operational efficiency and overall profitability. In the case of Sherwin-Williams Co., the increasing ROA trend from 2019 to 2023 signifies positive performance in utilizing its assets to drive earnings growth.
Peer comparison
Dec 31, 2023