Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Sherwin-Williams Co., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.88 | 1.00 | 1.02 | 1.01 | 1.12 | |
| Quick ratio | 0.44 | 0.50 | 0.50 | 0.51 | 0.58 | |
| Cash ratio | 0.03 | 0.05 | 0.04 | 0.04 | 0.05 |
Based on: 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Sherwin-Williams Co. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Sherwin-Williams Co. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Sherwin-Williams Co. cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Current Ratio
Sherwin-Williams Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 5,053,700) | 4,591,400) | 4,631,700) | 4,344,487) | 4,465,840) | |
| Current liabilities | 5,719,500) | 4,594,400) | 4,521,900) | 4,297,747) | 3,987,180) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.88 | 1.00 | 1.02 | 1.01 | 1.12 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Linde plc | 0.74 | 0.80 | 0.85 | — | — | |
| Current Ratio, Industry | ||||||
| Materials | 1.47 | 1.40 | 1.38 | — | — | |
Based on: 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).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,053,700 ÷ 5,719,500 = 0.88
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Sherwin-Williams Co. current ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Quick Ratio
Sherwin-Williams Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 165,700) | 226,600) | 161,800) | 155,505) | 204,213) | |
| Accounts receivable, less allowance | 2,352,400) | 2,078,100) | 2,088,900) | 2,018,768) | 2,104,555) | |
| Total quick assets | 2,518,100) | 2,304,700) | 2,250,700) | 2,174,273) | 2,308,768) | |
| Current liabilities | 5,719,500) | 4,594,400) | 4,521,900) | 4,297,747) | 3,987,180) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.44 | 0.50 | 0.50 | 0.51 | 0.58 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Linde plc | 0.55 | 0.59 | 0.61 | — | — | |
| Quick Ratio, Industry | ||||||
| Materials | 1.02 | 0.95 | 0.76 | — | — | |
Based on: 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).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,518,100 ÷ 5,719,500 = 0.44
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Sherwin-Williams Co. quick ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Cash Ratio
Sherwin-Williams Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 165,700) | 226,600) | 161,800) | 155,505) | 204,213) | |
| Total cash assets | 165,700) | 226,600) | 161,800) | 155,505) | 204,213) | |
| Current liabilities | 5,719,500) | 4,594,400) | 4,521,900) | 4,297,747) | 3,987,180) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.03 | 0.05 | 0.04 | 0.04 | 0.05 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Linde plc | 0.21 | 0.27 | 0.22 | — | — | |
| Cash Ratio, Industry | ||||||
| Materials | 0.72 | 0.65 | 0.41 | — | — | |
Based on: 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).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 165,700 ÷ 5,719,500 = 0.03
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Sherwin-Williams Co. cash ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |