Sherwin-Williams Co (SHW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,867,500 | 3,692,700 | 2,963,900 | 2,583,300 | 2,861,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,051,200 | 3,715,800 | 3,102,100 | 2,437,200 | 3,610,800 |
| Return on total capital | 95.47% | 99.38% | 95.54% | 105.99% | 79.25% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,867,500K ÷ ($—K + $4,051,200K)
= 95.47%
Based on the provided data, Sherwin-Williams Co's return on total capital has shown a consistent positive trend over the years. The return on total capital increased from 79.48% as of December 31, 2020, to 106.42% as of December 31, 2021, indicating significant growth in the company's efficiency in generating returns from its total invested capital.
Although there was a slight decrease to 95.94% as of December 31, 2022, and a subsequent increase to 99.38% as of December 31, 2023, the company demonstrated resilience and maintained a high level of profitability relative to its total capital base.
As of December 31, 2024, Sherwin-Williams Co recorded a return on total capital of 92.86%, which, although slightly lower than the previous year, still remains at a healthy level. Overall, the company's ability to generate returns from its total capital has remained strong and stable, indicating efficient capital utilization and a sound financial performance.
Peer comparison
Dec 31, 2024