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: 2026-09-30), 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 trend of compression over the analyzed period, characterized by a consistent reliance on non-cash current assets to meet short-term obligations.
- Current Ratio Trends
- The current ratio fluctuated between a peak of 1.00 in mid-2023 and a period low of 0.71 by September 2026. While the ratio maintained a level of stability around the 1.00 threshold during 2022 and early 2023, a gradual downward trajectory followed. This decline indicates a diminishing margin of safety regarding the coverage of current liabilities with current assets.
- Quick Ratio Trends
- Quick ratio values remained substantially lower than current ratios throughout the period, peaking at 0.52 in 2023 before settling into a range between 0.38 and 0.45. The persistent and significant gap between the current and quick ratios suggests that a substantial portion of current assets is concentrated in inventory, which is less liquid than receivables or cash.
- Cash Ratio Trends
- The cash ratio remained consistently low, primarily hovering between 0.02 and 0.04, with a brief increase to 0.08 in September 2023. This stability at a low level indicates a minimal liquidity buffer consisting of cash and cash equivalents, suggesting a lean approach to cash holdings relative to total current liabilities.
The synchronized decline in both current and quick ratios toward the end of the analyzed timeframe suggests increasing pressure on short-term liquidity, as the most recent figures represent the lowest points observed since March 2022.
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Current Ratio
Sherwin-Williams Co., current ratio calculation (quarterly data)
| Sep 30, 2026 | 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 | 7,027,400) | 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 | 9,848,900) | 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 | 0.71 | 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 | 0.86 | 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: 2026-09-30), 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 Q3 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,027,400 ÷ 9,848,900 = 0.71
2 Click competitor name to see calculations.
The company's liquidity position exhibits a general downward trend over the analyzed period, characterized by a current ratio that spent the majority of the timeframe below the 1.00 threshold. Although a period of relative stability was maintained between September 2022 and June 2023, where the ratio reached 1.00, a subsequent decline has occurred, culminating in a period low of 0.71 by September 30, 2026.
- Current Asset Trends
- Current assets fluctuated within a range of approximately $5.4 billion to $6.4 billion for much of the observation period. A notable upward trend emerged in early 2026, with assets climbing from $6.499 billion in March 2026 to $7.027 billion by September 2026.
- Current Liability Trends
- Current liabilities showed significant growth, particularly in the final year of the data. After fluctuating between $5.9 billion and $7.8 billion from 2022 through 2025, liabilities experienced a sharp increase in 2026, rising from $7.534 billion in March to $9.848 billion by September 2026.
- Current Ratio Analysis
- The deterioration of the current ratio is primarily attributed to the disproportionate growth of current liabilities relative to current assets. While assets grew by approximately 8% between March 2026 and September 2026, liabilities increased by roughly 30% during the same window. This divergence has pushed the current ratio from 0.86 in March 2026 down to 0.71 in September 2026, indicating a constrained short-term liquidity position where current obligations exceed available liquid assets.
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Quick Ratio
Sherwin-Williams Co., quick ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | 264,200) | 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 | 3,598,100) | 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 | 3,862,300) | 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 | 9,848,900) | 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 | 0.39 | 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 | 0.64 | 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: 2026-09-30), 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 Q3 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,862,300 ÷ 9,848,900 = 0.39
2 Click competitor name to see calculations.
The quick ratio exhibits a consistent pattern of low liquidity throughout the analyzed period, remaining significantly below the 1.0 threshold. While the ratio fluctuated within a narrow range between 0.38 and 0.52, the overall trend indicates a challenging liquidity position where quick assets are insufficient to cover immediate current liabilities without relying on inventory liquidation.
- Quick Ratio Fluctuations
- The ratio reached its peak of 0.52 during the second and third quarters of 2023. Subsequently, a contraction occurred, with the ratio dropping to 0.38 by December 2023 and remaining at that level through March 2024. A modest recovery was observed throughout 2025, peaking at 0.45 in March 2026, before declining again to 0.39 by September 2026.
- Analysis of Quick Assets
- Total quick assets demonstrate a general upward trajectory, growing from 3.18 billion USD in March 2022 to 3.86 billion USD by September 2026. However, a recurring seasonal pattern is evident, with notable dips in liquid asset levels typically occurring in the fourth quarter of each year, specifically in December 2022, 2023, and 2024.
- Current Liabilities Expansion
- Current liabilities showed a steady increase for the majority of the period, rising from 6.95 billion USD in March 2022 to 7.53 billion USD in March 2026. A significant escalation in short-term obligations occurred in the second and third quarters of 2026, where liabilities surged to 9.85 billion USD. This sharp increase in liabilities outpaced the growth of quick assets, resulting in the compression of the quick ratio toward the end of the observed timeframe.
- Liquidity Correlation
- The stability of the quick ratio between 2022 and 2025 was maintained by a proportional relationship between asset growth and liability increases. The decline observed in 2026 is directly attributable to the accelerated growth of current liabilities, which increased by approximately 30% between March and September 2026, while quick assets remained relatively flat during the same interval.
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Cash Ratio
Sherwin-Williams Co., cash ratio calculation (quarterly data)
| Sep 30, 2026 | 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 | 264,200) | 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 | 264,200) | 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 | 9,848,900) | 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 | 0.03 | 0.02 | 0.04 | 0.08 | 0.03 | 0.02 | 0.03 | 0.02 | 0.04 | 0.06 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| Linde plc | 0.25 | 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: 2026-09-30), 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 Q3 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 264,200 ÷ 9,848,900 = 0.03
2 Click competitor name to see calculations.
The liquidity profile of the organization, as measured by the cash ratio, demonstrates a consistent pattern of minimal cash holdings relative to current obligations over the period from March 2022 to September 2026. The ratio remains predominantly low, reflecting a strategic or operational approach that does not prioritize the maintenance of high cash reserves for immediate liability coverage.
- Cash Asset Volatility
- Total cash assets exhibit significant fluctuations throughout the analyzed timeframe. A notable peak occurred in September 2023, reaching 503.4 million USD, which coincided with the highest recorded cash ratio of 0.08. Conversely, a period of contraction was observed in late 2022, with assets dropping to 130.5 million USD by September of that year. In the latter half of the period, cash assets stabilized, generally oscillating between 200 million and 300 million USD.
- Current Liabilities Trend
- There is a discernible upward trajectory in current liabilities. Starting at 6.95 billion USD in March 2022, liabilities grew steadily, surpassing the 7 billion USD mark and eventually reaching a peak of 9.85 billion USD by September 2026. This increase suggests an expanding short-term obligation base over the five-year span.
- Cash Ratio Stability
- Despite the volatility in total cash assets and the growth in current liabilities, the cash ratio remained remarkably stable. For a significant portion of the observed period, specifically from March 2024 through September 2026, the ratio held constant at 0.03. This indicates that the growth in current liabilities has generally scaled in proportion to cash holdings, maintaining a lean liquidity position.
Overall, the data indicates a high reliance on other current assets or operational cash flows to meet short-term debts, as the cash ratio consistently fails to reach a level that would suggest a cash-heavy liquidity strategy.
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