Sherwin-Williams Co (LTS:0L5V) ROCE % : 27.29% (As of Sep. 2024)

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What is Sherwin-Williams Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Sherwin-Williams Co's annualized ROCE % for the quarter that ended in Sep. 2024 was 27.29%.

Sherwin-Williams Co ROCE % Historical Data

The historical data trend for Sherwin-Williams Co's ROCE % 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.

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Sherwin-Williams Co ROCE % Chart

Sherwin-Williams Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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15.13

18.00

16.80

18.77

21.40

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
ROCE %	Get a 7-Day Free Trial															26.76	13.91	18.42	31.89	27.29

Sherwin-Williams Co ROCE % Calculation

Sherwin-Williams Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	3527.4	/	( ( (22594 - 5960.7)	+	(22954.4 - 6626.9) )	/ 2 )
	=	3527.4	/	( (16633.3	+	16327.5)	/ 2 )
	=	3527.4	/	16480.4
	=	21.40 %

Sherwin-Williams Co's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	4504.8	/	( ( (23734 - 7466.6)	+	(23968.3 - 7218.1) )	/ 2 )
	=	4504.8	/	( ( 16267.4	+	16750.2 )	/ 2 )
	=	4504.8	/	16508.8
	=	27.29 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Sherwin-Williams Co (LTS:0L5V) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Sherwin-Williams Co ROCE % Related Terms

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Sherwin-Williams Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sherwin-Williams Co (LTS:0L5V) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SHW:USA SHW:Mexico 1SHW:Italy SJ3:Germany SJ3:Germany S1HW34:Brazil SHWW:Austria

Address

101 West Prospect Avenue, Cleveland, OH, USA, 44115-1075

Website

https://www.sherwin-williams.com

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.

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