SHERWIN WILLIAMS CO Earnings Per Share Disclosure
| 2025 | 2024 | 2023 | |||||||||||||||
| Basic | |||||||||||||||||
| Net income | $ | 2,568.5 | $ | 2,681.4 | $ | 2,388.8 | |||||||||||
| Weighted average shares outstanding | 247.6 | 251.0 | 255.4 | ||||||||||||||
| Basic net income per share | $ | 10.37 | $ | 10.68 | $ | 9.35 | |||||||||||
| Diluted | |||||||||||||||||
| Net income | $ | 2,568.5 | $ | 2,681.4 | $ | 2,388.8 | |||||||||||
| Weighted average shares outstanding assuming dilution: | |||||||||||||||||
| Weighted average shares outstanding | 247.6 | 251.0 | 255.4 | ||||||||||||||
Stock options and other contingently issuable shares (1) | 2.8 | 3.1 | 2.9 | ||||||||||||||
| Weighted average shares outstanding assuming dilution | 250.4 | 254.1 | 258.3 | ||||||||||||||
| Diluted net income per share | $ | 10.26 | $ | 10.55 | $ | 9.25 | |||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.