Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Sherwin-Williams Co., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio
- The current ratio exhibits fluctuations over the observed periods, starting at 0.94 in March 2020 and reaching a peak of 1.19 in September 2020. Following this peak, the ratio generally trends downward with some variability, falling below 1.0 for most of the later periods and ending at 0.77 in March 2025. This downward trend suggests a gradual decline in short-term liquidity, indicating potential tightening of current assets relative to current liabilities over time.
- Quick Ratio
- The quick ratio follows a somewhat similar pattern to the current ratio but at consistently lower values. It begins at 0.48 in March 2020 and increases to a high of 0.71 in September 2020, indicating an improvement in the company's ability to meet short-term obligations without relying on inventory. After this peak, the ratio declines with fluctuations, stabilizing around the mid-0.4 range in recent periods and finishing at 0.38 in March 2025. This suggests that the liquidity excluding inventory has diminished gradually, reflecting potential shifts in the composition or liquidity of current assets.
- Cash Ratio
- The cash ratio remains notably low throughout the periods, starting from 0.05 in March 2020, with some intermittent increases such as the 0.14 observed in September 2020 and a smaller spike to 0.08 in September 2023. However, overall the ratio fluctuates mostly between 0.02 and 0.06, concluding at 0.03 in March 2025. The consistently low values indicate limited cash and cash equivalents relative to current liabilities, demonstrating the company's minimal reliance on cash holdings to cover immediate obligations.
- Overall Analysis
- The financial liquidity ratios indicate that the company has experienced a peak in liquidity measures around the third quarter of 2020, followed by a general decline and stabilization at lower levels through to early 2025. The decreases in current and quick ratios suggest tightening liquidity conditions and a reduced buffer of liquid assets. The consistently low cash ratio reinforces a cautious perspective regarding immediate cash availability. These trends could imply potential challenges in short-term financial flexibility, warranting further review of working capital management and operational cash flows.
Current Ratio
Sherwin-Williams Co., current ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current assets | 6,039,700) | 5,400,800) | 5,974,300) | 6,050,600) | 5,842,400) | 5,512,900) | 6,198,800) | 6,350,600) | 6,292,800) | 5,907,700) | 6,117,200) | 6,259,500) | 6,086,400) | 5,053,700) | 5,378,400) | 5,185,700) | 5,109,600) | 4,591,400) | 5,175,600) | 4,883,200) | 4,928,000) | |||||||
| Current liabilities | 7,876,700) | 6,808,700) | 7,218,100) | 7,466,600) | 7,483,500) | 6,626,900) | 6,623,200) | 6,339,100) | 6,306,000) | 5,960,700) | 6,096,000) | 7,198,200) | 6,953,100) | 5,719,500) | 6,478,500) | 6,190,400) | 5,651,600) | 4,594,400) | 4,358,300) | 4,459,600) | 5,220,200) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | 0.77 | 0.79 | 0.83 | 0.81 | 0.78 | 0.83 | 0.94 | 1.00 | 1.00 | 0.99 | 1.00 | 0.87 | 0.88 | 0.88 | 0.83 | 0.84 | 0.90 | 1.00 | 1.19 | 1.09 | 0.94 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Linde plc | 0.94 | 0.89 | 0.96 | 0.95 | 0.91 | 0.80 | 0.83 | 0.78 | 0.73 | 0.79 | 0.74 | 0.74 | 0.84 | 0.74 | 0.81 | 0.71 | 0.74 | 0.80 | 0.83 | 0.80 | 0.74 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,039,700 ÷ 7,876,700 = 0.77
2 Click competitor name to see calculations.
The data reveals notable fluctuations in the liquidity position over the observed quarters. Current assets exhibit a generally increasing trend up to early 2023, peaking around the first quarter of 2023, followed by a decline through the end of 2023 and into 2025. This suggests an initial build-up of short-term resources which later decreased.
In contrast, current liabilities show a rising trend over the entire period, with occasional dips. Starting at a lower level relative to current assets in early 2020, they increase significantly by 2025, indicating growing short-term obligations.
The current ratio, a key liquidity metric calculated as current assets divided by current liabilities, reflects these dynamics. Initially below 1.0 in early 2020, it improves and exceeds 1.0 through parts of 2020 to early 2023, showing periods where current assets were sufficient to cover current liabilities. However, from mid-2023 onward, the ratio declines steadily below 1.0, reaching approximately 0.77 by the first quarter of 2025. This downward trend highlights increasing liquidity risk, with current liabilities outpacing current assets, potentially indicating tightening short-term financial flexibility.
- Current Assets
- Increase from approximately 4.9 billion USD in early 2020 to a peak over 6.2 billion USD by early 2023, followed by a decrease to around 6.0 billion USD by early 2025.
- Current Liabilities
- Overall increase from about 5.2 billion USD in early 2020 to nearly 7.9 billion USD by early 2025, showing growing short-term obligations.
- Current Ratio
- Fluctuated from 0.94 in early 2020 to values exceeding 1.0 between late 2020 and early 2023, then declined below 1.0 to 0.77 by early 2025, indicating decreasing short-term liquidity coverage.
Quick Ratio
Sherwin-Williams Co., quick ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 199,800) | 210,400) | 238,200) | 200,000) | 179,900) | 276,800) | 503,400) | 209,400) | 151,400) | 198,800) | 130,500) | 312,600) | 401,100) | 165,700) | 313,300) | 219,600) | 314,700) | 226,600) | 619,900) | 188,100) | 238,500) | |||||||
| Accounts receivable, net | 2,813,100) | 2,388,800) | 2,973,400) | 3,048,100) | 2,809,100) | 2,467,900) | 2,940,900) | 3,117,800) | 2,909,200) | 2,563,600) | 2,897,600) | 2,982,500) | 2,783,600) | 2,352,400) | 2,598,000) | 2,590,600) | 2,414,100) | 2,078,100) | 2,454,500) | 2,472,500) | 2,291,500) | |||||||
| Total quick assets | 3,012,900) | 2,599,200) | 3,211,600) | 3,248,100) | 2,989,000) | 2,744,700) | 3,444,300) | 3,327,200) | 3,060,600) | 2,762,400) | 3,028,100) | 3,295,100) | 3,184,700) | 2,518,100) | 2,911,300) | 2,810,200) | 2,728,800) | 2,304,700) | 3,074,400) | 2,660,600) | 2,530,000) | |||||||
| Current liabilities | 7,876,700) | 6,808,700) | 7,218,100) | 7,466,600) | 7,483,500) | 6,626,900) | 6,623,200) | 6,339,100) | 6,306,000) | 5,960,700) | 6,096,000) | 7,198,200) | 6,953,100) | 5,719,500) | 6,478,500) | 6,190,400) | 5,651,600) | 4,594,400) | 4,358,300) | 4,459,600) | 5,220,200) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | 0.38 | 0.38 | 0.44 | 0.44 | 0.40 | 0.41 | 0.52 | 0.52 | 0.49 | 0.46 | 0.50 | 0.46 | 0.46 | 0.44 | 0.45 | 0.45 | 0.48 | 0.50 | 0.71 | 0.60 | 0.48 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Linde plc | 0.73 | 0.67 | 0.73 | 0.73 | 0.70 | 0.61 | 0.62 | 0.57 | 0.56 | 0.61 | 0.56 | 0.56 | 0.65 | 0.55 | 0.63 | 0.52 | 0.56 | 0.59 | 0.64 | 0.61 | 0.54 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,012,900 ÷ 7,876,700 = 0.38
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- The total quick assets exhibit a fluctuating pattern over the periods assessed. Initially increasing from 2,530,000 thousand USD in March 2020 to a peak of 3,074,400 thousand USD in September 2020, there is subsequently a decline to 2,304,700 thousand USD by December 2020. The asset values then rise again, reaching another peak near the end of 2021 and early 2022, specifically above 3,300,000 thousand USD in mid-2023 and early 2024. However, the last recorded periods show a decrease, dropping to approximately 2,599,200 thousand USD by March 2025. This indicates periodic volatility in liquid assets available to the company, with multiple peaks and troughs within the four-year timeframe.
- Trends in Current Liabilities
- Current liabilities demonstrate a generally upward trajectory, starting from 5,220,200 thousand USD in March 2020 and rising to 7,876,700 thousand USD by March 2025. Despite some oscillations, such as a dip in the latter months of 2020 and early 2021, the overall trend indicates increased short-term obligations over the period considered. The peak values are notably above 7,400,000 thousand USD from mid-2024 onward, showing a steady increase in liabilities that may influence liquidity strategy.
- Assessment of Quick Ratio
- The quick ratio fluctuates notably but remains below 1.0 during all reported periods, indicating consistent liquidity constraints relative to current liabilities. It started at 0.48 in March 2020 and peaked at 0.71 in September 2020, then generally declined towards the end of 2020. From 2021 to early 2023, the ratio varied between approximately 0.44 and 0.52, suggesting moderate but insufficient quick asset coverage. More recently, it has declined again to around 0.38 by March 2025, reflecting a reduction in immediate liquidity relative to short-term obligations. This trend points to a weakening in quick asset coverage against current liabilities over time, which could imply increased liquidity risk.
- Summary of Financial Liquidity Trends
- The combined analysis of quick assets, current liabilities, and the quick ratio indicates an environment of rising current liabilities accompanied by volatile quick assets, resulting in a decreasing quick ratio over time. This pattern signals a growing imbalance between liquid resources and short-term liabilities, highlighting potential liquidity challenges. Although there are intermittent improvements in quick assets and the quick ratio, the prevailing downward movement in the quick ratio toward the end of the period raises concerns about the adequacy of immediate asset coverage for liabilities.
Cash Ratio
Sherwin-Williams Co., cash ratio calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | 199,800) | 210,400) | 238,200) | 200,000) | 179,900) | 276,800) | 503,400) | 209,400) | 151,400) | 198,800) | 130,500) | 312,600) | 401,100) | 165,700) | 313,300) | 219,600) | 314,700) | 226,600) | 619,900) | 188,100) | 238,500) | |||||||
| Total cash assets | 199,800) | 210,400) | 238,200) | 200,000) | 179,900) | 276,800) | 503,400) | 209,400) | 151,400) | 198,800) | 130,500) | 312,600) | 401,100) | 165,700) | 313,300) | 219,600) | 314,700) | 226,600) | 619,900) | 188,100) | 238,500) | |||||||
| Current liabilities | 7,876,700) | 6,808,700) | 7,218,100) | 7,466,600) | 7,483,500) | 6,626,900) | 6,623,200) | 6,339,100) | 6,306,000) | 5,960,700) | 6,096,000) | 7,198,200) | 6,953,100) | 5,719,500) | 6,478,500) | 6,190,400) | 5,651,600) | 4,594,400) | 4,358,300) | 4,459,600) | 5,220,200) | |||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | 0.03 | 0.03 | 0.03 | 0.03 | 0.02 | 0.04 | 0.08 | 0.03 | 0.02 | 0.03 | 0.02 | 0.04 | 0.06 | 0.03 | 0.05 | 0.04 | 0.06 | 0.05 | 0.14 | 0.04 | 0.05 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Linde plc | 0.37 | 0.33 | 0.37 | 0.34 | 0.34 | 0.30 | 0.27 | 0.23 | 0.28 | 0.33 | 0.25 | 0.24 | 0.31 | 0.21 | 0.32 | 0.21 | 0.27 | 0.27 | 0.35 | 0.33 | 0.26 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 199,800 ÷ 7,876,700 = 0.03
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets exhibit notable volatility over the observed periods. Initially, there was a decline from 238.5 million to 188.1 million US dollars between the first and second quarters of 2020, followed by a sharp increase to 619.9 million in the third quarter of 2020. Subsequently, cash assets fluctuate without a clear trend, reaching lower values around the end of 2020 and first half of 2021, then rising again markedly in late 2023 with a peak of 503.4 million in the third quarter of 2023. More recently, the cash assets decline toward the first quarter of 2025, settling around 199.8 million. These fluctuations suggest episodes of significant cash inflow and outflow, possibly due to operational cycles, investment activities, or financing events.
- Current liabilities
- Current liabilities display an overall upward trajectory from early 2020 through mid-2024, with values increasing from approximately 5.22 billion US dollars to peaks near 7.88 billion in the first quarter of 2025. Despite some fluctuations, especially notable declines at the end of 2020 and early 2021, the general trend indicates rising liabilities, which may reflect increased short-term obligations or growth in operational scale. The peak liabilities in early 2025 highlight a continued accumulation of current obligations, demanding close monitoring of liquidity and short-term financial management.
- Cash ratio
- The cash ratio remains consistently low throughout the entire period, generally fluctuating between 0.02 and 0.08. The highest values occur sporadically, for example, 0.14 in the third quarter of 2020 and 0.08 in the third quarter of 2023, suggesting brief intervals of improved liquidity relative to current liabilities. However, for the majority of the timeline, the ratio hovers around 0.02 to 0.04, indicating a limited buffer of cash to cover current liabilities. This persistent low cash ratio implies a generally tight liquidity position, emphasizing the importance of effective working capital management and access to alternative short-term funding sources.