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: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
The liquidity profile exhibits a general tightening trend over the analyzed period, characterized by ratios that frequently remain below 1.0. This suggests a consistent environment where short-term obligations exceed the most liquid assets available for immediate settlement.
- Current Ratio
- The ratio fluctuated between 0.87 and 1.00 throughout 2022 and the first half of 2023, peaking at 1.00. However, a subsequent decline is observed, with the ratio dropping to 0.78 by March 2024. While a slight recovery occurred during 2025, reaching 0.87 in December, the period concludes with a significant drop to 0.73 by June 2026, indicating a long-term erosion of the current liquidity buffer.
- Quick Ratio
- The quick ratio remained consistently low, generally oscillating between 0.38 and 0.52. A peak of 0.52 was reached in mid-2023, followed by a decline to 0.38 in late 2023 and early 2024. The ratio showed marginal stability through 2025 before ending at 0.40. The substantial gap between the current and quick ratios indicates a high dependency on inventory to meet short-term obligations.
- Cash Ratio
- Cash liquidity remained minimal and relatively static, with values predominantly ranging between 0.02 and 0.04. A brief spike to 0.08 occurred in September 2023, but the ratio quickly reverted to a baseline of 0.03. This indicates that cash and cash equivalents provide negligible coverage for current liabilities.
Overall, the analysis reveals a structural reliance on non-cash current assets, specifically inventory, to manage short-term liquidity. The downward trend in the current ratio toward the end of the period suggests increasing pressure on the company's ability to cover its immediate financial obligations.
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Current Ratio
Sherwin-Williams Co., current ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Current assets | 6,999,200) | 6,499,700) | 6,007,400) | 6,146,100) | 6,425,300) | 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) | ||||||
| Current liabilities | 9,627,000) | 7,534,600) | 6,920,300) | 7,473,500) | 8,196,400) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Current ratio1 | 0.73 | 0.86 | 0.87 | 0.82 | 0.78 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 0.88 | 0.83 | 0.88 | 0.82 | 0.93 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,999,200 ÷ 9,627,000 = 0.73
2 Click competitor name to see calculations.
A general deterioration in the short-term liquidity position is observed over the period from March 2022 to June 2026. While the current ratio reached parity at 1.00 during several quarters between September 2022 and June 2023, a subsequent downward trajectory is evident, concluding at a period low of 0.73 in June 2026.
- Current Ratio Volatility and Trends
- The current ratio exhibited relative stability between 0.87 and 1.00 during the 2022 and first half of 2023 periods. However, starting in September 2023, a gradual decline began, with the ratio frequently dropping below 0.80. Although a brief recovery toward 0.87 occurred by December 2025, the most recent data indicates a sharp decline to 0.73, marking the lowest liquidity level in the analyzed timeframe.
- Asset and Liability Divergence
- The decline in the liquidity ratio is primarily attributed to current liabilities growing at a faster rate than current assets. Current assets increased from $6.09 billion in March 2022 to approximately $7.00 billion by June 2026. In contrast, current liabilities rose more aggressively from $6.95 billion in March 2022 to $9.63 billion by June 2026. This widening gap suggests an increase in short-term obligations that outpaces the accumulation of liquid assets.
- Liquidity Risk Implications
- The persistence of a current ratio below 1.0 for the majority of the observation period indicates that current liabilities consistently exceed current assets. The trend toward 0.73 suggests an increasing reliance on continuous operational cash flow or the utilization of credit lines to meet immediate financial obligations, reflecting a tightening of the company's short-term financial flexibility.
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Quick Ratio
Sherwin-Williams Co., quick ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Cash and cash equivalents | 293,500) | 216,900) | 207,200) | 241,500) | 269,800) | 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) | ||||||
| Accounts receivable, net | 3,571,200) | 3,192,100) | 2,791,200) | 3,122,300) | 3,111,900) | 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) | ||||||
| Total quick assets | 3,864,700) | 3,409,000) | 2,998,400) | 3,363,800) | 3,381,700) | 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) | ||||||
| Current liabilities | 9,627,000) | 7,534,600) | 6,920,300) | 7,473,500) | 8,196,400) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Quick ratio1 | 0.40 | 0.45 | 0.43 | 0.45 | 0.41 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 0.68 | 0.62 | 0.68 | 0.62 | 0.70 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,864,700 ÷ 9,627,000 = 0.40
2 Click competitor name to see calculations.
The liquidity profile of the organization exhibits a consistent pattern where quick assets cover less than half of current liabilities throughout the analyzed period. The quick ratio has fluctuated within a narrow range, specifically between a minimum of 0.38 and a maximum of 0.52, indicating a persistent reliance on inventory liquidation or external financing to meet short-term obligations.
- Quick Ratio Volatility
- The ratio experienced a gradual increase from 0.46 in early 2022 to a peak of 0.52 in mid-2023. This was followed by a period of contraction, reaching a low of 0.38 between December 2023 and March 2024. Subsequent quarters showed a moderate recovery toward 0.45 before declining again to 0.40 by June 2026.
- Asset and Liability Dynamics
- Total quick assets demonstrated cyclical movement, generally ranging from $2.6 billion to $3.4 billion for the majority of the period, before reaching a peak of $3.86 billion in June 2026. Conversely, current liabilities showed a long-term upward trajectory, growing from $6.95 billion in March 2022 to $9.63 billion in June 2026. This overall expansion of short-term obligations has exerted continuous downward pressure on the liquidity ratio.
- Correlation of Trends
- The compression of the quick ratio to its lowest levels in late 2023 and early 2024 correlates with a period of diminishing quick assets relative to stable or increasing liabilities. While quick assets reached their historical high in June 2026, the simultaneous surge in current liabilities to $9.63 billion—the highest recorded in the period—resulted in a net decrease in the quick ratio from 0.45 in the preceding quarter to 0.40.
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Cash Ratio
Sherwin-Williams Co., cash ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Cash and cash equivalents | 293,500) | 216,900) | 207,200) | 241,500) | 269,800) | 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) | ||||||
| Total cash assets | 293,500) | 216,900) | 207,200) | 241,500) | 269,800) | 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) | ||||||
| Current liabilities | 9,627,000) | 7,534,600) | 6,920,300) | 7,473,500) | 8,196,400) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Cash ratio1 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 0.30 | 0.26 | 0.33 | 0.28 | 0.33 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).
1 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 293,500 ÷ 9,627,000 = 0.03
2 Click competitor name to see calculations.
The analysis of liquidity metrics from March 31, 2022, to June 30, 2026, reveals a consistently low cash ratio, indicating a strategy that maintains minimal immediate cash reserves relative to short-term obligations. The ratio predominantly fluctuates within a narrow band between 0.02 and 0.04, suggesting a high reliance on other current assets or operational cash flow to meet current liabilities.
- Cash Ratio Trends and Volatility
- The cash ratio began at 0.06 in March 2022 before experiencing a downward trend toward a low of 0.02 by September 2022. A significant outlier occurred in September 2023, where the ratio peaked at 0.08, driven by a temporary surge in total cash assets to 503.4 million. Following this peak, the ratio stabilized and remained constant at 0.03 for the majority of the subsequent periods, including the final assessment in June 2026.
- Current Liabilities Expansion
- A persistent upward trend is observed in current liabilities over the analyzed timeframe. Liabilities increased from approximately 6.95 billion in March 2022 to a peak of 9.63 billion by June 2026. This growth in short-term obligations has outpaced the growth of cash assets, contributing to the sustained low levels of the cash ratio.
- Cash Asset Management
- Total cash assets exhibited significant fluctuation in the early stages of the period, dropping from 401.1 million in March 2022 to 130.5 million in September 2022. While cash balances recovered and varied between 179.9 million and 293.5 million in later quarters, the absolute increase in cash was insufficient to offset the substantial rise in current liabilities.
- Liquidity Stability Assessment
- From March 2024 through June 2026, the cash ratio demonstrated remarkable stability, maintaining a value of 0.03. This consistency suggests a deliberate treasury management policy aimed at optimizing cash utilization rather than maintaining a high liquidity buffer, effectively operating with a lean cash position relative to the scale of current liabilities.
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