Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Sherwin-Williams Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Short-term borrowings	1,200,500)	662,400)	374,200)	978,100)	763,500)
Accounts payable	2,354,200)	2,253,200)	2,315,000)	2,436,500)	2,403,000)
Compensation and taxes withheld	839,400)	842,800)	862,700)	784,500)	716,600)
Accrued taxes	187,400)	174,300)	197,400)	197,400)	160,300)
Current portion of long-term debt	350,100)	1,049,200)	1,098,800)	600)	260,600)
Current portion of operating lease liabilities	479,800)	466,600)	449,300)	425,300)	409,700)
Current portion of finance lease liabilities	700)	3,700)	—)	—)	—)
Other accruals	1,508,200)	1,356,500)	1,329,500)	1,138,300)	1,005,800)
Current liabilities	6,920,300)	6,808,700)	6,626,900)	5,960,700)	5,719,500)
Long-term debt, excluding current portion	9,320,700)	8,176,800)	8,377,900)	9,591,000)	8,590,900)
Postretirement benefits other than pensions	129,800)	120,700)	133,200)	139,300)	259,400)
Deferred income taxes	765,300)	607,500)	683,100)	681,600)	768,200)
Long-term operating lease liabilities, excluding current portion	1,591,500)	1,558,300)	1,509,500)	1,512,900)	1,470,700)
Long-term finance lease liabilities, excluding current portion	194,700)	185,600)	—)	—)	—)
Other long-term liabilities	2,381,100)	2,123,800)	1,908,000)	1,606,400)	1,420,800)
Long-term liabilities	14,383,100)	12,772,700)	12,611,700)	13,531,200)	12,510,000)
Total liabilities	21,303,400)	19,581,400)	19,238,600)	19,491,900)	18,229,500)
Common stock, $0.33-1/3 par value	83,100)	92,500)	91,800)	91,200)	90,800)
Other capital	4,204,500)	4,576,200)	4,193,600)	3,963,900)	3,793,000)
Retained earnings	1,029,400)	7,246,300)	5,288,300)	3,523,200)	2,121,700)
Treasury stock, at cost	(84,300)	(6,988,600)	(5,233,600)	(3,775,600)	(2,869,900)
Accumulated other comprehensive loss	(634,400)	(875,200)	(624,300)	(700,600)	(698,400)
Shareholders’ equity	4,598,300)	4,051,200)	3,715,800)	3,102,100)	2,437,200)
Total liabilities and shareholders’ equity	25,901,700)	23,632,600)	22,954,400)	22,594,000)	20,666,700)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Overall, the company’s total liabilities and shareholders’ equity demonstrate a consistent upward trend from 2021 to 2025, increasing from US$20.67 billion to US$25.90 billion. This growth is primarily driven by increases in both total liabilities and shareholders’ equity. A more detailed examination reveals shifts within the composition of both liability and equity sections.

Short-Term Liabilities: Short-term borrowings exhibit volatility, decreasing significantly in 2023 before rising substantially in 2025. Accounts payable remain relatively stable throughout the period, with a slight decrease observed in 2023 and 2024. Accruals, encompassing compensation and taxes withheld, accrued taxes, and other accruals, consistently increase year-over-year, contributing to the overall growth in current liabilities. The current portion of long-term debt also shows fluctuation, with a large increase in 2023 followed by a decrease in 2025. Current liabilities generally increased from 2021 to 2025.
Long-Term Liabilities: Long-term debt, excluding current portion, remains substantial and relatively stable, with a slight decrease from 2021 to 2024 before increasing in 2025. Postretirement benefits other than pensions show a decreasing trend, while deferred income taxes fluctuate modestly. Long-term operating lease liabilities demonstrate a consistent increase throughout the period. Other long-term liabilities also exhibit a steady upward trend. Overall, long-term liabilities increased from 2021 to 2025.
Shareholders’ Equity: Common stock remains relatively constant, with a decrease observed in 2025. Other capital shows an increasing trend from 2021 to 2024, followed by a decrease in 2025. Retained earnings experience significant growth from 2021 to 2024, but decrease substantially in 2025. Treasury stock consistently increases in absolute value (negative equity), indicating ongoing share repurchases. Accumulated other comprehensive loss remains negative and fluctuates modestly. Shareholders’ equity increased from 2021 to 2025, despite the decrease in retained earnings and increase in treasury stock in the final year.

The notable decrease in retained earnings in 2025, coupled with the increase in treasury stock, suggests a significant return of capital to shareholders, potentially through dividends or accelerated share buybacks. The increase in short-term borrowings in 2025 could be related to funding these capital returns or investments in operations. The overall increase in liabilities suggests the company is utilizing debt financing to support its growth and operations.

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Sherwin-Williams Co. (NYSE:SHW)

Balance Sheet: Liabilities and Stockholders’ Equity