Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Sherwin-Williams Co., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 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 reported periods, starting at 0.94 in March 2020 and peaking at 1.19 in September 2020, indicative of improved short-term liquidity at that time. Subsequently, the ratio declines, reaching a low around 0.77–0.79 in mid to late 2025. This downward trend suggests a gradual weakening in the company's ability to cover short-term liabilities with current assets over the longer term. Minor recoveries occur intermittently, such as around mid-2022 and early 2023 when the ratio approaches or slightly exceeds 1, but the overall trajectory points to reduced liquidity buffer.
- Quick Ratio
- The quick ratio mirrors a similar pattern to the current ratio but remains consistently lower, reflecting the exclusion of inventory from liquid assets. It begins at 0.48 in March 2020, rises to a peak near 0.71 in September 2020, and gradually decreases thereafter, settling near 0.38 to 0.41 towards the end of the period in 2025. This indicates that the company's liquid assets, excluding inventory, relative to current liabilities have diminished somewhat over time, potentially posing tighter short-term financial flexibility. The ratio maintains modest fluctuations but shows a general declining trend in later quarters.
- Cash Ratio
- The cash ratio remains consistently low throughout the examined periods, generally fluctuating between 0.02 and 0.08. Starting at 0.05 in March 2020, it experiences minor variations without a clear upward or downward long-term trend. This persistently low ratio suggests that the company's most liquid assets, typically cash and cash equivalents, cover only a small fraction of current liabilities. There are occasional slight increases, such as 0.14 in September 2020 and 0.08 in late 2023, but these seem isolated and do not significantly alter the overall low liquidity measured at this narrow level.
- Overall Insights
- The financial liquidity indicators collectively point to a company with fluctuating but generally adequate short-term liquidity in the earlier periods, followed by a gradual erosion of liquidity margins in the most recent periods. The current and quick ratios indicate some ability to meet current obligations, though the trend towards ratios below 1 suggests increasing dependence on non-liquid assets or longer-term financing. The low and stable cash ratio reinforces the position that immediate cash availability is limited, which could expose the company to short-term financial strain in adverse conditions. Monitoring these trends is recommended to ensure liquidity remains sufficient to support operational needs.
Current Ratio
Sherwin-Williams Co., current ratio calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 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 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets Trend
- The current assets displayed fluctuations over the reported quarters. Initially, values hovered around the 4.9 to 5.2 million US$ range between March and September 2020. A noticeable increase was observed beginning March 2021, peaking at approximately 6.35 million by the middle of 2023. Subsequently, a decline occurred toward the end of 2023 and into early 2024, dropping to around 5.5 million, followed by a modest recovery reaching over 6.4 million US$ by mid-2025.
- Current Liabilities Trend
- Current liabilities exhibited a generally upward trajectory through the periods. Starting near 5.2 million US$ in March 2020, a dip occurred by September 2020 at approximately 4.36 million, then a steady increase commenced, surpassing 6 million by early 2021. The trend continued with values climbing to over 8.1 million US$ by mid-2025, indicating growing obligations over time.
- Current Ratio Trend
- The current ratio began slightly below one at 0.94 in early 2020, improving to a peak of 1.19 by September 2020, indicating strengthening liquidity early in the period. However, from late 2020 onwards, the ratio mostly remained below one, oscillating between 0.77 and 1.00, with a tendency toward marginal decline. By mid-2025, the current ratio stabilized at approximately 0.78, signifying a consistent position where current liabilities exceeded current assets, implying constrained short-term liquidity.
- Overall Analysis
- Throughout the observed timeframe, current assets increased but with noticeable volatility, while current liabilities consistently grew, resulting in a generally declining current ratio. The sustained current ratio below one from late 2020 onward suggests potential liquidity challenges, as liabilities exceed liquid assets. The increasing liabilities paired with fluctuating assets may warrant further scrutiny into working capital management and short-term financial obligations.
Quick Ratio
Sherwin-Williams Co., quick ratio calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||||||||||||||||||||||||
| Accounts receivable, net | |||||||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 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 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- The total quick assets exhibit considerable fluctuations over the observed quarters. Starting at approximately 2.53 billion USD in March 2020, there is a general increase reaching a peak of around 3.45 billion USD in September 2023. However, notable decreases occur towards the end of 2023 and into early 2024, with total quick assets declining to near 2.6 billion USD by March 2025. Such variability suggests periods of asset accumulation followed by reductions, indicating shifts in liquidity management or operational cash flows.
- Trend in Current Liabilities
- Current liabilities show a pattern of overall growth with periodic declines in certain quarters. Beginning at roughly 5.22 billion USD in March 2020, liabilities increase significantly to above 6.5 billion USD by late 2021. This upward trajectory continues with some fluctuations, peaking at over 8.1 billion USD in June 2025. The increasing current liabilities imply a rising short-term financial obligation load, which may impact liquidity.
- Behavior of the Quick Ratio
- The quick ratio reflects the company’s ability to meet short-term liabilities with its most liquid assets. Values fluctuate between 0.38 and 0.71 during the period. The ratio peaked around September 2020 at 0.71 but generally stays below 0.6 in most quarters afterward, with intermittent small rises above 0.5 in mid-2023. A downward trend is observed starting from late 2023, with the quick ratio dipping below 0.4 by the first half of 2025. This indicates a weakening of the company's liquid asset coverage relative to current liabilities over time.
- Liquidity and Financial Health Insights
- Despite an overall increase in total quick assets during several intervals, the simultaneous growth in current liabilities leads to a declining quick ratio, especially in the recent periods. The persistent drop in the quick ratio below 0.5, and approaching 0.38 in early 2025, suggests decreasing liquidity buffers. This could point to a potential strain on the company’s ability to cover short-term obligations swiftly. The divergence between rising liabilities and less proportional increases in quick assets implies that management may need to address liquidity risk.
Cash Ratio
Sherwin-Williams Co., cash ratio calculation (quarterly data)
| Jun 30, 2025 | 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 | |||||||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-30), 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 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets display significant fluctuations over the analyzed periods. Initial values started at $238.5 million at March 31, 2020, followed by a notable peak of $619.9 million at September 30, 2020. This peak was succeeded by a decline, reaching a lower point of $130.5 million at September 30, 2022. Subsequently, there is another marked increase to $503.4 million by September 30, 2023, before decreasing again to $199.8 million at September 30, 2024. Through to June 30, 2025, the cash assets hover around the $200 million to $270 million range. This pattern indicates volatility in cash holdings, with intermittent periods of both accumulation and depletion, reflecting potentially varying liquidity management or operational cash flow impacts.
- Current Liabilities
- Current liabilities demonstrate a generally increasing trend throughout the periods. Starting from approximately $5.22 billion at March 31, 2020, liabilities dropped slightly mid-2020 but then rose significantly, peaking at around $8.2 billion by June 30, 2025. The data shows incremental increases with occasional minor declines or leveling-off phases, notably around the end of 2022 and early 2023. Overall, this upward trajectory of current liabilities suggests growing short-term obligations, which may impact the firm's liquidity and short-term financial stability.
- Cash Ratio
- The cash ratio remains relatively low and tends to oscillate between 0.02 and 0.08 throughout the periods. Early in the timeline, it begins at 0.05 in March 2020, spikes to 0.14 in September 2020 coinciding with the peak in cash assets, then drops back to levels between 0.02 and 0.06 thereafter. The lowest ratios are largely observed after mid-2022, maintaining around 0.02 to 0.03. The persistently low cash ratio indicates limited coverage of current liabilities solely by cash assets, suggesting reliance on other current assets or financing for meeting short-term obligations.