GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sherwin-Williams Co (NYSE:SHW) » Definitions » Return-on-Tangible-Equity

SHW (Sherwin-Williams Co) Return-on-Tangible-Equity : Negative Tangible Equity% (As of Sep. 2024)


View and export this data going back to 1964. Start your Free Trial

What is Sherwin-Williams Co Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sherwin-Williams Co's annualized net income for the quarter that ended in Sep. 2024 was $3,225 Mil. Sherwin-Williams Co's average shareholder tangible equity for the quarter that ended in Sep. 2024 was $-7,353 Mil. Therefore, Sherwin-Williams Co's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2024 was Negative Tangible Equity%.

The historical rank and industry rank for Sherwin-Williams Co's Return-on-Tangible-Equity or its related term are showing as below:

SHW' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0   Med: 0   Max: 0
Current: Negative Tangible Equity

SHW's Return-on-Tangible-Equity is ranked better than
99.93% of 1520 companies
in the Chemicals industry
Industry Median: 5.575 vs SHW: Negative Tangible Equity

Sherwin-Williams Co Return-on-Tangible-Equity Historical Data

The historical data trend for Sherwin-Williams Co's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sherwin-Williams Co Return-on-Tangible-Equity Chart

Sherwin-Williams Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Sherwin-Williams Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity Negative Tangible Equity

Competitive Comparison of Sherwin-Williams Co's Return-on-Tangible-Equity

For the Specialty Chemicals subindustry, Sherwin-Williams Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sherwin-Williams Co's Return-on-Tangible-Equity Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sherwin-Williams Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Sherwin-Williams Co's Return-on-Tangible-Equity falls into.



Sherwin-Williams Co Return-on-Tangible-Equity Calculation

Sherwin-Williams Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=2388.8/( (-8483.1+-7790.7 )/ 2 )
=2388.8/-8136.9
=Negative Tangible Equity %

Sherwin-Williams Co's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2024 )  (Q: Jun. 2024 )(Q: Sep. 2024 )
=3224.8/( (-7547.9+-7157.8)/ 2 )
=3224.8/-7352.85
=Negative Tangible Equity %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Sherwin-Williams Co  (NYSE:SHW) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Sherwin-Williams Co Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Sherwin-Williams Co's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Sherwin-Williams Co Business Description

Address
101 West Prospect Avenue, Cleveland, OH, USA, 44115-1075
Sherwin-Williams is the largest provider of architectural paint in the United States. The company has over 5,000 stores and sells premium paint at higher price points than most competitors. Sherwin-Williams also sells paint-related products in big-box stores and provides coatings for original equipment manufacturers.
Executives
Mary L Garceau officer: SVP, Gen. Counsel & Secretary 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Jane M. Cronin officer: SVP - Corporate Controller 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Gregory P. Sofish officer: SVP - Human Resources 101 WEST PROSPECT AVENUE, 1180 MIDLAND BUILDING, CLEVELAND OH 44115
Allen J Mistysyn officer: VP-Corporate Controller 101 WEST PROSPECT AVENUE, CLEVELAND OH 44115
John G Morikis officer: President, Paint Stores Group C/O THE SHERWIN WILLIAMS CO, 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Bryan J Young officer: SVP - Corp Strategy & Devel. 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Justin T Binns officer: President, Perf Coatings Grp 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Karl J Jorgenrud officer: President, Perf Coatings Group 101 WEST PROSPECT AVENUE, 1180 MIDLAND, CLEVELAND OH 44115
Todd D Rea officer: President, Consumer Brands Grp 101 W. PROSPECT AVENUE, 1180 MIDLAND, CLEVELAND OH 44115
Heidi G Petz officer: President, Consumer Brands Grp 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Thomas L Williams director 6035 PARKLAND BOULEVARD, CLEVELAND OH 44124
Joseph F Sladek officer: Pres. & GM, Glob. Supply Chain 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Marta R Stewart director C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Peter J. Ippolito officer: President, The Americas Group 101 W. PROSPECT AVENUE, CLEVELAND OH 44115
Thomas P Gilligan officer: SVP-Human Resources 101 W. PROSPECT AVENUE, CLEVELAND OH 44115