Financial Statement Analysis

Excel Problem

STUDENT NAME
The Sherwin-Williams Company
BALANCE SHEETS
DECEMBER 30, 2010 AND 2009
(IN THOUSANDS)
ASSETS

2010

Current Assets:
Cash

1.13%

696,055,000
738,488,000
266,147,000

17.73%
17.75%
6.21%

2,213,722,000

############

42.82%

1,102,458,000
320,504,000
248,333,000
332,100,000
2,426,175,000
1,474,057,000

1,014,825,000
279,413,000
245,301,000
195,612,000
2,221,157,000
1,402,472,000

21.33%
6.20%
4.80%
6.42%
46.93%
28.52%

2,955,513,000

############

57.18%

5,169,235,000

############

100.00%

22,674,000
$ 674,766,000
176,538,000
76,499,000
12,267,000
430,924,000

7.52%
17.60%
4.90%
1.21%
0.15%
8.55%

############

39.93%

916,661,000
917,701,000
320,775,000

Total Current Assets

Goodwill
Intangible Assets
Defferred Pension Assets
Other Assets
Property, Plant, and Equipment
Less accum. depreciation
Total Plant Assets
Total Assets

VERTICAL

69,329,000

Accounts Receivable, Less Allowance

Inventories
Taxes and Other Current Assets

58,585,000

2009

LIABILITIES & STOCKHOLDERS' EQUITY

Current Liabilities:
Short Term Borrowings
Accounts Payable
Compensation and Taxes Withheld
Accrued
Current Portion of Long-Term Debt
Other Accruals

Total Current Liabilities

388,592,000
909,649,000
253,247,000
62,547,000
7,875,000
442,030,000
2,063,940,000

Long Term Debt

Postretirement Benefits other than Pensions
Other Long-Term Liabilities
Total Liabilities

648,326,000
295,896,000
551,633,000
3,559,795,000

782,670,000
283,784,000
372,783,000
2,832,905,000

12.54%
5.72%
10.67%

Stockholders' Equity
Common Stock
Preferred Stock
Unearned ESOP Compensation

231,346,000
216,753,000
(216,753,000)

228,647,000
216,753,000
(216,753,000)

4.48%
4.19%
-4.19%

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Financial Statement Analysis

Excel Problem

Other Capital
Retained Earnings
Treasury Stock, at Cost
Cumulative Other Comprehensive Loss

1,222,909,000
4,824,489,000
(4,390,983,000)
(278,321,000)

1,068,963,000
4,518,428,000
############
(317,455,000)

23.66%
93.33%
-84.94%
-5.38%

Total Stockholders' Equity

1,609,440,000

############

31.13%

Stockholders' Equity
Total Liabilities &

5,169,235,000

############

100.00%

The Sherwin-Williams Company

INCOME STATEMENTS
FOR THE YEARS ENDED DECEMBER 30, 2010 AND 2009
(in thousands)
2010

2009

VERTICAL

Net Sales Revenue

Cost of Goods Sold

7,776,424,000
4,295,346,000

############
3,831,080,000

100.00%
55.24%

Gross Margin

3,481,078,000

############

44.76%

2,728,122,000

2,534,775,000

35.08%

70,595,000

40,026,000

0.91%

Expenses:
Selling & Administrative Expenses
Interest Expense
Total Expenses

Income before taxes

Income tax expense

Net Income

2,798,717,000

############

35.99%

677,784,000
215,299,000

622,817,000
186,969,000

8.72%
2.77%

462,485,000

$ 435,848,000

5.95%

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Financial Statement Analysis

Excel Problem

ACTIVITY MEASURES
Asset Turnover:
Net Sales Revenue/Average Total Assets
1.64
Accounts Receivable Turnover:
Net Sales/Average Accounts Receivable
9.64
Number of Days Sales in Receivables:
Annual sales/365
Accounts receivable/Average day's sales

$ 21,305,271.23
43.03

Inventory Turnover:
Cost of Goods Sold/Average Inventory

5.19

Number of Days Sales in Inventory:

Annual Cost of Goods Sold/365

$ 11,768,071.23

Inventory/Average Day's Cost of Goods Sold

77.98

LIQUIDITY MEASURES
Working Capital:
Current Assets-Current Liabilities

149,782,000

Current Ratio:
Current Assets/Current Liabilities

1.07

Acid-Test Ratio:
Quick assets/Current liabilities

0.47

FINANCIAL LEVERAGE MEASURES

Debt Ratio:
Total Liabilities/Total Liabilities & Stockholders' Equity

Debt-equity Ratio:
Total Liabilities/Total Stockholders' Equity

0.69

2.21

PROFITABILITY MEASURES
Return on Investment:
Net Income/Total Average Assets

0.10

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Financial Statement Analysis

Excel Problem

Return On Equity
Net Income/Average Stockholder's Equity

0.30

Profit Margin:
Net Income/Net Sales Revenue

0.06

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Financial Statement Analysis

$ CHANGE

% CHANGE

(10,744,000)

-15.50%

220,606,000
179,213,000
54,628,000

31.69%
24.27%
20.53%

443,703,000

25.07%

87,633,000
41,091,000
3,032,000
136,488,000
205,018,000
71,585,000

8.64%
14.71%
1.24%
69.77%
9.23%
5.10%

401,677,000

15.73%

845,380,000

19.55%

365,918,000
234,883,000
76,709,000
(13,952,000)
(4,392,000)
11,106,000

1613.82%
34.81%
43.45%
-18.24%
-35.80%
2.58%

670,272,000

48.09%

(134,344,000)
12,112,000
178,850,000

-17.16%
4.27%
47.98%

2,699,000

Excel Problem

1.18%
0.00%
0.00%

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Financial Statement Analysis

153,946,000
306,061,000
(383,350,000)
39,134,000

14.40%
6.77%
9.57%
-12.33%

118,490,000

7.95%

845,380,000

19.55%

$ CHANGE

Excel Problem

% CHANGE

682,175,000
464,266,000

9.62%
12.12%

217,909,000

6.68%

193,347,000
30,569,000

7.63%
76.37%

223,916,000

8.70%

54,967,000
28,330,000

8.83%
15.15%

26,637,000

6.11%

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