SHW SHERWIN WILLIAMS CO

Overview and Growth

Fiscal 2025 results for SHERWIN WILLIAMS CO combined $23.57B of revenue with net income of $2.57B and an operating cash inflow of $3.45B. At $23.57B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 2.1% above fiscal 2024 revenue of $23.10B, marking a year-over-year increase. Diluted earnings per share were $10.26, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS decreased by 2.7% from $10.55 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.91x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $11.52B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 48.8% of revenue, showing how much of the top line remained after direct costs. Net income came to $2.57B, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 10.9%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $3.34B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 14.2% of revenue, placing earnings before tax in the context of the company’s operating scale. Income tax expense totaled $769.70M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 23.1%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 55.9%, indicating the profitability achieved on book capital. Return on period-end assets was 9.9%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

The near-term balance sheet paired $6.01B of current assets with $6.92B of current liabilities at the reporting date. At 0.87x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. Reported cash and equivalents were $207.20M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 3.0% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The company carried $9.67B of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 2.1x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 37.3%, showing how much of the asset base was matched by borrowing. Cash and equivalents equaled 0.8% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 9.6% higher than fiscal 2024 assets of $23.63B, measuring the company’s own balance-sheet change. Reported equity changed 13.5% from $4.05B in fiscal 2024, placing the current capital base higher year over year.

Cash Flow and Earnings Quality

The company reported $3.45B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.34x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $797.60M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 23.1% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $2.65B of positive free cash flow for the period. Free cash flow represented 11.3% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 10.2%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.