Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Sherwin-Williams Co., solvency ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Sherwin-Williams Co. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Sherwin-Williams Co. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Sherwin-Williams Co. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Sherwin-Williams Co. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Sherwin-Williams Co. debt to assets ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Sherwin-Williams Co. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Sherwin-Williams Co. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Sherwin-Williams Co. interest coverage ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Sherwin-Williams Co. fixed charge coverage ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |
Debt to Equity
Sherwin-Williams Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term borrowings | 763,500) | 100) | 204,700) | 328,403) | 633,731) | |
| Current portion of long-term debt | 260,600) | 25,100) | 429,800) | 307,191) | 1,179) | |
| Long-term debt, excluding current portion | 8,590,900) | 8,266,900) | 8,050,700) | 8,708,057) | 9,885,745) | |
| Total debt | 9,615,000) | 8,292,100) | 8,685,200) | 9,343,651) | 10,520,655) | |
| Shareholders’ equity | 2,437,200) | 3,610,800) | 4,123,300) | 3,730,745) | 3,692,188) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 3.95 | 2.30 | 2.11 | 2.50 | 2.85 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Linde plc | 0.33 | 0.34 | 0.28 | — | — | |
| Debt to Equity, Industry | ||||||
| Materials | 0.38 | 0.41 | 0.38 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 9,615,000 ÷ 2,437,200 = 3.95
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Sherwin-Williams Co. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Sherwin-Williams Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term borrowings | 763,500) | 100) | 204,700) | 328,403) | 633,731) | |
| Current portion of long-term debt | 260,600) | 25,100) | 429,800) | 307,191) | 1,179) | |
| Long-term debt, excluding current portion | 8,590,900) | 8,266,900) | 8,050,700) | 8,708,057) | 9,885,745) | |
| Total debt | 9,615,000) | 8,292,100) | 8,685,200) | 9,343,651) | 10,520,655) | |
| Current portion of operating lease liabilities | 409,700) | 387,300) | 371,600) | —) | —) | |
| Long-term operating lease liabilities, excluding current portion | 1,470,700) | 1,434,100) | 1,370,700) | —) | —) | |
| Total debt (including operating lease liability) | 11,495,400) | 10,113,500) | 10,427,500) | 9,343,651) | 10,520,655) | |
| Shareholders’ equity | 2,437,200) | 3,610,800) | 4,123,300) | 3,730,745) | 3,692,188) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 4.72 | 2.80 | 2.53 | 2.50 | 2.85 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.35 | 0.36 | 0.30 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Materials | 0.39 | 0.42 | 0.40 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 11,495,400 ÷ 2,437,200 = 4.72
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Sherwin-Williams Co. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Sherwin-Williams Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term borrowings | 763,500) | 100) | 204,700) | 328,403) | 633,731) | |
| Current portion of long-term debt | 260,600) | 25,100) | 429,800) | 307,191) | 1,179) | |
| Long-term debt, excluding current portion | 8,590,900) | 8,266,900) | 8,050,700) | 8,708,057) | 9,885,745) | |
| Total debt | 9,615,000) | 8,292,100) | 8,685,200) | 9,343,651) | 10,520,655) | |
| Shareholders’ equity | 2,437,200) | 3,610,800) | 4,123,300) | 3,730,745) | 3,692,188) | |
| Total capital | 12,052,200) | 11,902,900) | 12,808,500) | 13,074,396) | 14,212,843) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.80 | 0.70 | 0.68 | 0.71 | 0.74 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Linde plc | 0.25 | 0.26 | 0.22 | — | — | |
| Debt to Capital, Industry | ||||||
| Materials | 0.27 | 0.29 | 0.28 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,615,000 ÷ 12,052,200 = 0.80
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Sherwin-Williams Co. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Sherwin-Williams Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term borrowings | 763,500) | 100) | 204,700) | 328,403) | 633,731) | |
| Current portion of long-term debt | 260,600) | 25,100) | 429,800) | 307,191) | 1,179) | |
| Long-term debt, excluding current portion | 8,590,900) | 8,266,900) | 8,050,700) | 8,708,057) | 9,885,745) | |
| Total debt | 9,615,000) | 8,292,100) | 8,685,200) | 9,343,651) | 10,520,655) | |
| Current portion of operating lease liabilities | 409,700) | 387,300) | 371,600) | —) | —) | |
| Long-term operating lease liabilities, excluding current portion | 1,470,700) | 1,434,100) | 1,370,700) | —) | —) | |
| Total debt (including operating lease liability) | 11,495,400) | 10,113,500) | 10,427,500) | 9,343,651) | 10,520,655) | |
| Shareholders’ equity | 2,437,200) | 3,610,800) | 4,123,300) | 3,730,745) | 3,692,188) | |
| Total capital (including operating lease liability) | 13,932,600) | 13,724,300) | 14,550,800) | 13,074,396) | 14,212,843) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.83 | 0.74 | 0.72 | 0.71 | 0.74 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.26 | 0.27 | 0.23 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Materials | 0.28 | 0.30 | 0.29 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 11,495,400 ÷ 13,932,600 = 0.83
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Sherwin-Williams Co. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Sherwin-Williams Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term borrowings | 763,500) | 100) | 204,700) | 328,403) | 633,731) | |
| Current portion of long-term debt | 260,600) | 25,100) | 429,800) | 307,191) | 1,179) | |
| Long-term debt, excluding current portion | 8,590,900) | 8,266,900) | 8,050,700) | 8,708,057) | 9,885,745) | |
| Total debt | 9,615,000) | 8,292,100) | 8,685,200) | 9,343,651) | 10,520,655) | |
| Total assets | 20,666,700) | 20,401,600) | 20,496,200) | 19,134,279) | 19,958,427) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.47 | 0.41 | 0.42 | 0.49 | 0.53 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Linde plc | 0.18 | 0.18 | 0.16 | — | — | |
| Debt to Assets, Industry | ||||||
| Materials | 0.18 | 0.19 | 0.18 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 9,615,000 ÷ 20,666,700 = 0.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Sherwin-Williams Co. debt to assets ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Sherwin-Williams Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term borrowings | 763,500) | 100) | 204,700) | 328,403) | 633,731) | |
| Current portion of long-term debt | 260,600) | 25,100) | 429,800) | 307,191) | 1,179) | |
| Long-term debt, excluding current portion | 8,590,900) | 8,266,900) | 8,050,700) | 8,708,057) | 9,885,745) | |
| Total debt | 9,615,000) | 8,292,100) | 8,685,200) | 9,343,651) | 10,520,655) | |
| Current portion of operating lease liabilities | 409,700) | 387,300) | 371,600) | —) | —) | |
| Long-term operating lease liabilities, excluding current portion | 1,470,700) | 1,434,100) | 1,370,700) | —) | —) | |
| Total debt (including operating lease liability) | 11,495,400) | 10,113,500) | 10,427,500) | 9,343,651) | 10,520,655) | |
| Total assets | 20,666,700) | 20,401,600) | 20,496,200) | 19,134,279) | 19,958,427) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.56 | 0.50 | 0.51 | 0.49 | 0.53 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.19 | 0.20 | 0.17 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Materials | 0.18 | 0.20 | 0.19 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 11,495,400 ÷ 20,666,700 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Sherwin-Williams Co. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Financial Leverage
Sherwin-Williams Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 20,666,700) | 20,401,600) | 20,496,200) | 19,134,279) | 19,958,427) | |
| Shareholders’ equity | 2,437,200) | 3,610,800) | 4,123,300) | 3,730,745) | 3,692,188) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 8.48 | 5.65 | 4.97 | 5.13 | 5.41 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Linde plc | 1.85 | 1.86 | 1.76 | — | — | |
| Financial Leverage, Industry | ||||||
| Materials | 2.13 | 2.13 | 2.10 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 20,666,700 ÷ 2,437,200 = 8.48
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Sherwin-Williams Co. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021. |
Interest Coverage
Sherwin-Williams Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,864,400) | 2,030,400) | 1,541,300) | 1,108,746) | 1,772,262) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | (41,540) | |
| Add: Income tax expense | 384,200) | 488,800) | 440,500) | 250,904) | (285,583) | |
| Add: Interest expense | 334,700) | 340,400) | 349,300) | 366,734) | 263,471) | |
| Earnings before interest and tax (EBIT) | 2,583,300) | 2,859,600) | 2,331,100) | 1,726,384) | 1,791,690) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 7.72 | 8.40 | 6.67 | 4.71 | 6.80 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Linde plc | 45.60 | 21.41 | 21.27 | — | — | |
| Interest Coverage, Industry | ||||||
| Materials | 15.26 | 9.00 | 7.67 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,583,300 ÷ 334,700 = 7.72
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Sherwin-Williams Co. interest coverage ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Fixed Charge Coverage
Sherwin-Williams Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,864,400) | 2,030,400) | 1,541,300) | 1,108,746) | 1,772,262) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | (41,540) | |
| Add: Income tax expense | 384,200) | 488,800) | 440,500) | 250,904) | (285,583) | |
| Add: Interest expense | 334,700) | 340,400) | 349,300) | 366,734) | 263,471) | |
| Earnings before interest and tax (EBIT) | 2,583,300) | 2,859,600) | 2,331,100) | 1,726,384) | 1,791,690) | |
| Add: Operating lease cost | 478,000) | 464,500) | 452,900) | 552,658) | 464,616) | |
| Earnings before fixed charges and tax | 3,061,300) | 3,324,100) | 2,784,000) | 2,279,042) | 2,256,306) | |
| Interest expense | 334,700) | 340,400) | 349,300) | 366,734) | 263,471) | |
| Operating lease cost | 478,000) | 464,500) | 452,900) | 552,658) | 464,616) | |
| Fixed charges | 812,700) | 804,900) | 802,200) | 919,392) | 728,087) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.77 | 4.13 | 3.47 | 2.48 | 3.10 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Linde plc | 13.02 | 7.79 | 6.92 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Materials | 10.86 | 6.54 | 5.49 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,061,300 ÷ 812,700 = 3.77
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Sherwin-Williams Co. fixed charge coverage ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021 not reaching 2019 level. |