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: 2025-09-30), 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), 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).
- Current Ratio
- The current ratio exhibits some fluctuations over the observed periods, starting at 0.9 and declining slightly to a low of 0.77 by June 2025. It shows periods of moderate improvement, particularly around September and December 2021 where it reached 1.0 and 0.99 respectively. Subsequently, the ratio remains close to or slightly below 1.0 until early 2023, after which a gradual downward trend is noticeable, reaching below 0.8 in the mid to later periods. This suggests a decreasing level of short-term liquidity, indicating that the company's ability to cover current liabilities with current assets slightly weakens over time.
- Quick Ratio
- The quick ratio follows a generally similar pattern to the current ratio, though at lower values overall, reflecting a more conservative measure of liquidity excluding inventory. It begins around 0.48 and experiences minor fluctuations, peaking near 0.52 in mid to late 2023. Afterward, it declines to around 0.38 to 0.41 between 2024 and mid-2025, before showing a slight uptick to 0.45 by September 2025. This trend points to a reduction in the company's most liquid assets relative to current liabilities, indicating tighter short-term financial flexibility over the longer term.
- Cash Ratio
- The cash ratio remains notably low throughout the entire period, ranging mostly between 0.02 and 0.06. It starts at 0.06 but often dips to lower levels such as 0.02 or 0.03, with only occasional increases such as a peak at 0.08 in September 2023. The persistently low cash ratio indicates that the company maintains a minimal cash and cash equivalents buffer in relation to its current liabilities. This conservative cash position suggests reliance on other current assets or credit facilities to meet short-term obligations rather than holding substantial cash reserves.
Current Ratio
Sherwin-Williams Co., current ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Current assets | 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) | 5,053,700) | 5,378,400) | 5,185,700) | 5,109,600) | ||||||
| Current liabilities | 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) | 5,719,500) | 6,478,500) | 6,190,400) | 5,651,600) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | 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 | 0.88 | 0.83 | 0.84 | 0.90 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| Linde plc | 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 | 0.74 | 0.81 | 0.71 | 0.74 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,146,100 ÷ 7,473,500 = 0.82
2 Click competitor name to see calculations.
- Current Assets
- The current assets demonstrated a fluctuating but overall stable pattern over the observed periods. Starting from approximately 5.11 billion USD in early 2021, the values peaked around 6.26 billion USD in mid-2022, followed by some moderate declines and recoveries, ending at approximately 6.15 billion USD by late 2025. This indicates that the company maintained a generally strong level of liquid assets with some variability likely influenced by operational or market factors.
- Current Liabilities
- Current liabilities exhibited a more pronounced upward trend. Beginning at about 5.65 billion USD in early 2021, liabilities increased steadily reaching highs near 8.20 billion USD mid-2025. This consistent rise in short-term obligations points to a growing reliance on current debt or payables, which could imply increased operational scale or shifts in financing strategies.
- Current Ratio
- The current ratio, measuring liquidity, showed a declining trend with some periodic improvements. Initially, the ratio hovered slightly below 1.0 (0.9 in early 2021), suggesting the company’s current assets were almost equal to current liabilities. It improved to exactly 1.0 in late 2021 and early 2023, indicating adequate coverage of short-term debts at those points. However, afterward, the ratio mostly declined, dropping to as low as 0.77 by mid-2025 before a slight recovery to 0.82. This decline indicates a deterioration in short-term liquidity, with current liabilities outpacing current assets, which may raise concerns about the ability to cover immediate obligations without raising additional funds.
Quick Ratio
Sherwin-Williams Co., quick ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | 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) | 165,700) | 313,300) | 219,600) | 314,700) | ||||||
| Accounts receivable, net | 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) | 2,352,400) | 2,598,000) | 2,590,600) | 2,414,100) | ||||||
| Total quick assets | 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) | 2,518,100) | 2,911,300) | 2,810,200) | 2,728,800) | ||||||
| Current liabilities | 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) | 5,719,500) | 6,478,500) | 6,190,400) | 5,651,600) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | 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 | 0.44 | 0.45 | 0.45 | 0.48 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| Linde plc | 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 | 0.55 | 0.63 | 0.52 | 0.56 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,363,800 ÷ 7,473,500 = 0.45
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's liquidity position over the periods observed.
- Total Quick Assets
-
There is a fluctuating trend in total quick assets, starting at approximately 2.73 billion USD in early 2021 and peaking near 3.30 billion USD in mid-2024. The values show considerable variability, with notable declines towards the end of 2021 and late 2024. Despite these fluctuations, the overall range remains within roughly 2.6 to 3.4 billion USD, indicating moderate volatility in highly liquid assets.
- Current Liabilities
-
Current liabilities demonstrate an upward trajectory from 5.65 billion USD in March 2021 to a high of approximately 8.20 billion USD in mid-2025. Periodic declines are observed, particularly at the end of 2021 and early 2025, but the general pattern underscores a rising short-term obligations trend. This increase in liabilities outpaces the growth in quick assets, potentially exerting pressure on immediate liquidity resources.
- Quick Ratio
-
The quick ratio, which measures the company's ability to cover current liabilities with its most liquid assets, ranges from a low of 0.38 to a high of about 0.52 during the analyzed quarters. Initial values hover around 0.45, with a brief improvement to above 0.50 during late 2022 and mid-2023, followed by a decline below 0.40 in early and mid-2025. This suggests that despite periods of enhanced liquidity, the company maintains less than one dollar of quick assets for every dollar of current liabilities consistently, which is an area of cautious concern.
In summary, while quick assets have shown periods of growth, they have not kept pace with the rise in current liabilities, resulting in a generally moderate quick ratio below 0.5. This pattern may indicate tightening short-term liquidity and an increasing reliance on other sources of funding or operational cash flow to meet obligations. Monitoring the continuation of these trends is advisable to assess potential liquidity risks.
Cash Ratio
Sherwin-Williams Co., cash ratio calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | 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) | 165,700) | 313,300) | 219,600) | 314,700) | ||||||
| Total cash assets | 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) | 165,700) | 313,300) | 219,600) | 314,700) | ||||||
| Current liabilities | 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) | 5,719,500) | 6,478,500) | 6,190,400) | 5,651,600) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | 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 | 0.03 | 0.05 | 0.04 | 0.06 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| Linde plc | 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 | 0.21 | 0.32 | 0.21 | 0.27 | ||||||
Based on: 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), 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).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 241,500 ÷ 7,473,500 = 0.03
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit notable volatility across the quarters. There is a significant decrease from the first quarter of 2021 to the end of that year, dropping from 314.7 million USD to 165.7 million USD. Following this, the first half of 2022 shows recovery with cash assets reaching 401.1 million USD in the first quarter and then declining again in the second and third quarters. The end of 2022 to the first quarter of 2023 displays a relatively moderate level of cash assets fluctuating between approximately 150 million and 500 million USD. From mid-2023 to the first quarter of 2025, cash assets maintain a fluctuating but somewhat stable range between around 179.9 million and 503.4 million USD, with intermittent rises and falls, ending at 241.5 million USD in the third quarter of 2025.
- Current Liabilities
- Current liabilities steadily increase from 5.65 billion USD at the start of 2021 to a peak of approximately 8.2 billion USD in mid-2025. Despite some fluctuations, the overall trend is upward. Peaks are observed near mid-year 2022 and again in mid to late 2024 and mid-2025. Relative dips occur around the end of 2021 and early 2023 periods, but those are temporary. The increasing current liabilities indicate growing short-term obligations over the analyzed period.
- Cash Ratio
- The cash ratio remains consistently below 0.1 throughout the quarters, reflecting a low level of cash relative to current liabilities. It starts at 0.06 in early 2021, drops to a low of 0.02-0.03 during most quarters in 2021 and 2022, briefly rises to 0.08 in the third quarter of 2023, and then settles again around 0.02 to 0.03 in subsequent quarters through mid-2025. This suggests a tight cash position relative to short-term liabilities, indicating limited liquidity cushion based purely on cash assets.
- Overall Trends and Insights
- Over the observed period, current liabilities have generally increased, while cash assets and the cash ratio have fluctuated without a clear upward trend, indicating potential liquidity constraints. The relatively low cash ratios across all periods reflect a consistent position of limited immediate cash coverage for short-term liabilities. The fluctuations in cash assets might be driven by operational cycles, investment activities, or financing decisions, but the growing current liabilities suggest increasing reliance on short-term financing or payables, which may warrant close monitoring for liquidity risk.