Sherwin-Williams Co (SHW)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,811,000 | 3,761,900 | 3,747,800 | 3,639,100 | 3,636,400 | 2,887,100 | 2,752,900 | 2,461,000 | 2,285,400 | 2,766,100 | 2,481,800 | 2,551,200 | 2,702,300 | 2,865,600 | 3,126,800 | 3,052,200 | 2,849,300 | 2,095,938 | 1,928,038 | 1,860,738 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 23,632,600 | 4,156,100 | 3,751,800 | 3,503,700 | 3,715,800 | 3,780,000 | 3,631,100 | 3,166,800 | 3,102,100 | 2,597,800 | 2,224,600 | 2,234,300 | 2,437,200 | 2,690,300 | 2,840,400 | 3,078,700 | 3,610,800 | 4,207,300 | 3,869,900 | 3,289,100 |
| Return on total capital | 16.13% | 90.52% | 99.89% | 103.86% | 97.86% | 76.38% | 75.81% | 77.71% | 73.67% | 106.48% | 111.56% | 114.18% | 110.88% | 106.52% | 110.08% | 99.14% | 78.91% | 49.82% | 49.82% | 56.57% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,811,000K ÷ ($—K + $23,632,600K)
= 16.13%
Sherwin-Williams Co's return on total capital has exhibited fluctuations over the period under consideration. The ratio saw a notable increase from March 31, 2020, where it stood at 56.57%, to December 31, 2021, reaching 110.88%. This peak was followed by a slight decline to 73.67% by December 31, 2022. Subsequently, the return on total capital continued to fluctuate throughout the following quarters, with values ranging from a low of 16.13% by December 31, 2024, to a high of 114.18% by March 31, 2022.
The return on total capital indicates the efficiency with which the company generates profits from its total capital employed. Sherwin-Williams Co's management may need to analyze the reasons behind the significant fluctuations in this ratio to assess whether the company's capital allocation strategies are optimal and sustainable for long-term profitability.
Peer comparison
Dec 31, 2024