Sherwin-Williams Co (SHW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,715,800 | 3,102,100 | 2,437,200 | 3,610,800 | 4,123,300 |
| ROE | 64.29% | 65.12% | 76.50% | 56.23% | 37.38% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,388,800K ÷ $3,715,800K
= 64.29%
Sherwin-Williams Co.'s return on equity (ROE) has shown a generally positive trend over the past five years, reflecting the company's ability to generate profits from shareholders' equity. The ROE decreased from 37.38% in 2019 to 56.23% in 2020, which suggests an improvement in profitability. This positive trend continued in the following years, with ROE reaching 76.50% in 2021, indicating the company's effective utilization of equity to generate returns.
However, in 2022 and 2023, there was a slight decline in ROE to 65.12% and 64.29%, respectively. While these figures are still relatively high, the downward trend may raise concerns about the company's efficiency in generating profits from shareholders' investments.
Overall, Sherwin-Williams Co. has demonstrated strong performance in terms of ROE over the years, reflecting efficient management of equity capital to generate returns for shareholders. It would be important to further analyze the underlying factors influencing the recent slight decline in ROE to assess the company's long-term profitability and sustainability.
Peer comparison
Dec 31, 2023