The Sherwin-Williams Company stock research
FY2023 Q4
The Sherwin-Williams (SHW) Gross Margin — Quarter Ended Dec 31, 2023
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit and gross margin both improved compared to the prior quarter and the year-ago quarter, while cost of revenue declined relative to both periods.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit and gross margin both improved compared to the prior quarter and the year-ago quarter, while cost of revenue declined relative to both periods.
- The strongest observable margin driver is the gross margin improvement relative to both the prior quarter and the year-ago quarter, supported by a lower cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, revenue was lower while gross margin was higher. Compared to the same quarter one year earlier, revenue was higher and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.5%
Gross profit
$2.5B
Revenue
$5.3B
Cost of revenue
$2.7B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+5.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $5.4B | $2.4B | $3.0B | 44.5% |
| Jun 30, 2023 | $6.2B | $2.9B | $3.4B | 46.0% |
| Sep 30, 2023 | $6.1B | $2.9B | $3.2B | 47.7% |
| Dec 31, 2023 | $5.3B | $2.5B | $2.7B | 48.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.9 pts
Year-over-year change
Dec 31, 2022
+5.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross margin improvement relative to both the prior quarter and the year-ago quarter, supported by a lower cost of revenue relative to revenue.
Compared to the immediately preceding quarter, revenue was lower while gross margin was higher. Compared to the same quarter one year earlier, revenue was higher and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its decline contributed to margin expansion in the current quarter.