Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

Sherwin-Williams Co., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in thousands


The current ratio exhibited fluctuations over the period from 2005 to 2025. Initially, the ratio decreased from 1.22 in 2005 to 0.97 in 2007, before recovering to 1.27 in 2009. Subsequent years saw a decline to 1.07 in 2010 and a relatively stable period around 1.05-1.07 between 2010 and 2012. A significant increase to 1.68 occurred in 2012, followed by a decrease to 0.96 in 2013. The ratio then showed some volatility, increasing to 1.28 in 2015, decreasing to 1.01 in 2018, and then trending downwards to 0.79 in 2024 before a slight recovery to 0.87 in 2025.

Overall Trend
The overall trend suggests a general weakening of the company’s short-term liquidity position over the analyzed period. While there were periods of improvement, the ratio consistently trended downwards from its peak in 2012, culminating in values below 1.0 in recent years. A current ratio below 1.0 indicates that current liabilities exceed current assets.
Early Period (2005-2009)
From 2005 to 2009, the current ratio experienced moderate fluctuations. The initial decline may reflect increased investment in current assets or a rise in short-term obligations. The subsequent increase in 2009 could be attributed to a decrease in current liabilities, potentially due to improved working capital management or a reduction in short-term debt.
Mid-Period (2010-2014)
The period between 2010 and 2014 was characterized by volatility. The substantial increase in 2012 was followed by a decline in 2013, suggesting potential shifts in working capital management or changes in the timing of payments to suppliers. The ratio remained relatively close to 1.0 during this period, indicating a marginal ability to cover short-term liabilities with current assets.
Recent Period (2015-2025)
The most recent period, from 2015 to 2025, demonstrates a clear downward trend in the current ratio. The ratio fell below 1.0 in 2021 and remained below this benchmark through 2024, indicating increasing liquidity concerns. The slight increase in 2025 offers a minimal improvement but does not reverse the overall negative trend. This decline could be due to increased short-term financing needs, slower collection of receivables, or a build-up of inventory.

The observed fluctuations in the current ratio warrant further investigation into the underlying components of current assets and current liabilities to understand the drivers of these changes and assess the company’s short-term financial health.


Comparison to Competitors


Comparison to Sector (Chemicals)


Comparison to Industry (Materials)