Sherwin-Williams Co. (NYSE:SHW)

Coverage Ratios

Sherwin-Williams Co., solvency ratios (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
Debt Ratios
Debt to equity	2.97	3.13	2.64	2.36	2.60	2.43	2.61	2.44	2.44	2.76	3.06	2.65	2.63	2.86	3.50	3.41	4.06	4.77	4.74
Debt to equity (including operating lease liability)	3.52	3.69	3.11	2.81	3.07	2.90	3.10	2.94	2.91	3.28	3.62	3.18	3.14	3.40	4.11	4.03	4.79	5.62	5.59
Debt to capital	0.75	0.76	0.73	0.70	0.72	0.71	0.72	0.71	0.71	0.73	0.75	0.73	0.72	0.74	0.78	0.77	0.80	0.83	0.83
Debt to capital (including operating lease liability)	0.78	0.79	0.76	0.74	0.75	0.74	0.76	0.75	0.74	0.77	0.78	0.76	0.76	0.77	0.80	0.80	0.83	0.85	0.85
Debt to assets	0.44	0.45	0.44	0.42	0.44	0.42	0.44	0.42	0.42	0.44	0.46	0.43	0.43	0.45	0.48	0.47	0.47	0.48	0.49
Debt to assets (including operating lease liability)	0.52	0.53	0.52	0.50	0.52	0.50	0.52	0.50	0.50	0.52	0.54	0.51	0.52	0.53	0.56	0.55	0.56	0.57	0.57
Financial leverage	6.78	6.99	5.95	5.63	5.92	5.76	5.97	5.83	5.77	6.33	6.69	6.18	6.09	6.38	7.30	7.28	8.56	9.91	9.73
Coverage Ratios
Interest coverage	7.49	7.76	7.83	8.18	8.67	8.84	9.32	9.30	9.04	9.03	8.62	8.45	8.26	7.97	7.62	7.58	7.50	7.07	7.47

The solvency profile demonstrates a period of significant deleveraging between early 2022 and late 2024, followed by a phase of stabilization and a moderate increase in leverage through September 2026. The overall trend indicates an initial effort to reduce financial risk and strengthen the balance sheet, although recent quarters suggest a slight shift back toward higher debt utilization.

Equity and Leverage Ratios: A substantial reduction in the Debt to Equity ratio is observed, falling from 4.74 in March 2022 to a low of 2.44 in September 2024. This trend is mirrored in the Debt to Equity ratio including operating lease liabilities, which decreased from 5.59 to 2.91 over the same period. Financial leverage followed a similar trajectory, declining from a peak of 9.91 in June 2022 to 5.63 by December 2025. However, a reversal is evident in 2026, with the Debt to Equity ratio climbing back to 2.97 and financial leverage rising to 6.78 by September 2026.
Capital and Asset Ratios: Debt to capital and debt to assets ratios remained more stable than equity-based metrics, indicating a consistent approach to total capital structure. Debt to capital shifted from 0.83 in early 2022 to a low of 0.70 in December 2025, before settling at 0.75. Similarly, the debt to assets ratio trended downward from 0.49 to a minimum of 0.42 in late 2024, ending the period at 0.44. These movements suggest a gradual improvement in the asset-backing of the company's total debt obligations.
Interest Serviceability: The interest coverage ratio exhibited a consistent upward trend for the first three years, peaking at 9.32 in March 2025, which indicates a significant improvement in the capacity to service interest payments from operating earnings. Following this peak, a steady decline is observed, with the ratio retreating to 7.49 by September 2026. This return to early 2022 levels coincides with the observed increase in leverage ratios during the final quarters of the analyzed period.

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Sherwin-Williams Co., debt to equity 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)
Short-term borrowings	2,353,600)	2,246,400)	2,376,600)	1,200,500)	1,846,900)	1,706,700)	1,798,500)	662,400)	915,500)	1,358,300)	1,256,300)	374,200)	338,600)	806,200)	1,481,300)	978,100)	945,200)	2,012,000)	1,739,700)
Current portion of long-term debt	1,498,800)	1,498,400)	100)	350,100)	350,500)	1,150,700)	1,150,800)	1,049,200)	1,048,900)	849,700)	1,349,100)	1,098,800)	1,098,200)	499,500)	600)	600)	600)	600)	260,700)
Long-term debt, excluding current portion	7,942,700)	8,327,300)	9,323,100)	9,320,700)	9,318,100)	7,828,900)	7,827,100)	8,176,800)	8,175,300)	8,130,800)	8,129,500)	8,377,900)	8,499,200)	9,095,700)	9,593,100)	9,591,000)	9,588,900)	8,593,600)	8,592,300)
Total debt	11,795,100)	12,072,100)	11,699,800)	10,871,300)	11,515,500)	10,686,300)	10,776,400)	9,888,400)	10,139,700)	10,338,800)	10,734,900)	9,850,900)	9,936,000)	10,401,400)	11,075,000)	10,569,700)	10,534,700)	10,606,200)	10,592,700)

Shareholders’ equity	3,976,700)	3,854,700)	4,431,100)	4,598,300)	4,425,300)	4,400,900)	4,130,100)	4,051,200)	4,156,100)	3,751,800)	3,503,700)	3,715,800)	3,780,000)	3,631,100)	3,166,800)	3,102,100)	2,597,800)	2,224,600)	2,234,300)
Solvency Ratio
Debt to equity¹	2.97	3.13	2.64	2.36	2.60	2.43	2.61	2.44	2.44	2.76	3.06	2.65	2.63	2.86	3.50	3.41	4.06	4.77	4.74
Benchmarks
Debt to Equity, Competitors²
Linde plc	0.68	0.72	0.68	0.71	0.67	0.67	0.63	0.57	0.57	0.56	0.52	0.49	0.46	0.44	0.47	0.45	0.41	0.40	0.38

¹ Q3 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 11,795,100 ÷ 3,976,700 = 2.97

² Click competitor name to see calculations.

The solvency profile demonstrates a significant improvement in the capital structure from early 2022 through 2025, followed by a period of increased financial leverage in 2026.

Debt-to-Equity Ratio Dynamics: A pronounced downward trend is observed from March 2022 to September 2023, during which the ratio decreased from 4.74 to 2.63. This trend indicates a substantial reduction in financial risk and a shift toward a more balanced capital structure. After this initial decline, the ratio entered a period of relative stability, fluctuating between 2.36 and 3.06 through late 2025. A reversal occurred in June 2026, where the ratio peaked at 3.13 before moderating to 2.97 by September 2026.
Shareholders' Equity Trends: Equity exhibited consistent growth for the majority of the analyzed period, increasing from 2.23 billion USD in March 2022 to a peak of 4.60 billion USD in December 2025. This expansion of the equity base served as the primary driver for the initial improvement in the debt-to-equity ratio. However, a significant contraction is noted in June 2026, as equity fell to 3.85 billion USD, which directly contributed to the spike in leverage observed in the final year.
Total Debt Obligations: Total debt remained relatively stable between 9.85 billion USD and 11.08 billion USD from March 2022 through March 2024. An upward trend in borrowing began in 2025, with total debt reaching a peak of 12.07 billion USD in June 2026. The convergence of rising debt levels and declining equity in mid-2026 resulted in the observed deterioration of the solvency ratio during the concluding quarters.

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Sherwin-Williams Co., debt to equity (including operating lease liability) 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)
Short-term borrowings	2,353,600)	2,246,400)	2,376,600)	1,200,500)	1,846,900)	1,706,700)	1,798,500)	662,400)	915,500)	1,358,300)	1,256,300)	374,200)	338,600)	806,200)	1,481,300)	978,100)	945,200)	2,012,000)	1,739,700)
Current portion of long-term debt	1,498,800)	1,498,400)	100)	350,100)	350,500)	1,150,700)	1,150,800)	1,049,200)	1,048,900)	849,700)	1,349,100)	1,098,800)	1,098,200)	499,500)	600)	600)	600)	600)	260,700)
Long-term debt, excluding current portion	7,942,700)	8,327,300)	9,323,100)	9,320,700)	9,318,100)	7,828,900)	7,827,100)	8,176,800)	8,175,300)	8,130,800)	8,129,500)	8,377,900)	8,499,200)	9,095,700)	9,593,100)	9,591,000)	9,588,900)	8,593,600)	8,592,300)
Total debt	11,795,100)	12,072,100)	11,699,800)	10,871,300)	11,515,500)	10,686,300)	10,776,400)	9,888,400)	10,139,700)	10,338,800)	10,734,900)	9,850,900)	9,936,000)	10,401,400)	11,075,000)	10,569,700)	10,534,700)	10,606,200)	10,592,700)
Current portion of operating lease liabilities	487,600)	486,500)	484,700)	479,800)	479,800)	480,700)	470,100)	466,600)	462,800)	457,800)	454,000)	449,300)	441,100)	436,100)	430,200)	425,300)	418,100)	418,100)	416,000)
Long-term operating lease liabilities, excluding current portion	1,699,100)	1,656,800)	1,602,200)	1,591,500)	1,582,300)	1,603,200)	1,573,400)	1,558,300)	1,496,500)	1,502,900)	1,495,100)	1,509,500)	1,502,900)	1,503,200)	1,494,900)	1,512,900)	1,492,400)	1,483,100)	1,481,200)
Total debt (including operating lease liability)	13,981,800)	14,215,400)	13,786,700)	12,942,600)	13,577,600)	12,770,200)	12,819,900)	11,913,300)	12,099,000)	12,299,500)	12,684,000)	11,809,700)	11,880,000)	12,340,700)	13,000,100)	12,507,900)	12,445,200)	12,507,400)	12,489,900)

Shareholders’ equity	3,976,700)	3,854,700)	4,431,100)	4,598,300)	4,425,300)	4,400,900)	4,130,100)	4,051,200)	4,156,100)	3,751,800)	3,503,700)	3,715,800)	3,780,000)	3,631,100)	3,166,800)	3,102,100)	2,597,800)	2,224,600)	2,234,300)
Solvency Ratio
Debt to equity (including operating lease liability)¹	3.52	3.69	3.11	2.81	3.07	2.90	3.10	2.94	2.91	3.28	3.62	3.18	3.14	3.40	4.11	4.03	4.79	5.62	5.59

¹ Q3 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 13,981,800 ÷ 3,976,700 = 3.52

The company's solvency profile demonstrates a general trend of deleveraging between early 2022 and late 2025, followed by a modest increase in leverage through 2026. The debt-to-equity ratio experienced a substantial contraction, moving from a high of 5.62 in June 2022 to a minimum of 2.81 in December 2025, before rising to 3.52 by September 2026.

Total Debt Trends: Total debt, inclusive of operating lease liabilities, remained relatively stable between 12.4 billion and 12.5 billion USD throughout 2022. A period of reduction occurred during 2023, with liabilities reaching a low of approximately 11.8 billion USD by December 31, 2023. However, an upward trajectory emerged in 2024, with debt peaking at 14.2 billion USD in June 2026, reflecting an increase in total obligations toward the end of the analyzed period.
Shareholders' Equity Growth: Shareholders' equity exhibited consistent and significant growth for the majority of the timeframe. Starting at 2.2 billion USD in March 2022, equity expanded to reach a peak of 4.6 billion USD by December 2025. A notable reduction occurred in the first half of 2026, where equity decreased to 3.8 billion USD in June 2026 before slightly recovering to 3.98 billion USD by September 2026.
Debt to Equity Ratio Analysis: The solvency ratio improved markedly as equity growth outpaced debt increases from 2022 to 2025. The ratio declined from 5.59 in March 2022 to 2.91 in September 2024, reaching its lowest point of 2.81 in December 2025. The subsequent rise to 3.52 by September 2026 is attributable to the simultaneous increase in total debt and a contraction in shareholders' equity during the 2026 fiscal periods.

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Sherwin-Williams Co., debt to capital 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)
Short-term borrowings	2,353,600)	2,246,400)	2,376,600)	1,200,500)	1,846,900)	1,706,700)	1,798,500)	662,400)	915,500)	1,358,300)	1,256,300)	374,200)	338,600)	806,200)	1,481,300)	978,100)	945,200)	2,012,000)	1,739,700)
Current portion of long-term debt	1,498,800)	1,498,400)	100)	350,100)	350,500)	1,150,700)	1,150,800)	1,049,200)	1,048,900)	849,700)	1,349,100)	1,098,800)	1,098,200)	499,500)	600)	600)	600)	600)	260,700)
Long-term debt, excluding current portion	7,942,700)	8,327,300)	9,323,100)	9,320,700)	9,318,100)	7,828,900)	7,827,100)	8,176,800)	8,175,300)	8,130,800)	8,129,500)	8,377,900)	8,499,200)	9,095,700)	9,593,100)	9,591,000)	9,588,900)	8,593,600)	8,592,300)
Total debt	11,795,100)	12,072,100)	11,699,800)	10,871,300)	11,515,500)	10,686,300)	10,776,400)	9,888,400)	10,139,700)	10,338,800)	10,734,900)	9,850,900)	9,936,000)	10,401,400)	11,075,000)	10,569,700)	10,534,700)	10,606,200)	10,592,700)
Shareholders’ equity	3,976,700)	3,854,700)	4,431,100)	4,598,300)	4,425,300)	4,400,900)	4,130,100)	4,051,200)	4,156,100)	3,751,800)	3,503,700)	3,715,800)	3,780,000)	3,631,100)	3,166,800)	3,102,100)	2,597,800)	2,224,600)	2,234,300)
Total capital	15,771,800)	15,926,800)	16,130,900)	15,469,600)	15,940,800)	15,087,200)	14,906,500)	13,939,600)	14,295,800)	14,090,600)	14,238,600)	13,566,700)	13,716,000)	14,032,500)	14,241,800)	13,671,800)	13,132,500)	12,830,800)	12,827,000)
Solvency Ratio
Debt to capital¹	0.75	0.76	0.73	0.70	0.72	0.71	0.72	0.71	0.71	0.73	0.75	0.73	0.72	0.74	0.78	0.77	0.80	0.83	0.83
Benchmarks
Debt to Capital, Competitors²
Linde plc	0.40	0.42	0.41	0.41	0.40	0.40	0.39	0.36	0.36	0.36	0.34	0.33	0.32	0.30	0.32	0.31	0.29	0.29	0.28

¹ Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 11,795,100 ÷ 15,771,800 = 0.75

² Click competitor name to see calculations.

The solvency profile indicates a general trend of improvement in the debt-to-capital ratio over the analyzed period, characterized by a gradual decline from initial peaks followed by a period of relative stabilization. The ratio moved from a high of 0.83 in the first half of 2022 to a low of 0.70 by December 2025, before concluding the period at 0.75.

Total Debt Trends: Total debt exhibited significant volatility, starting at approximately 10.59 billion USD in March 2022. A period of debt reduction occurred through 2023, reaching a trough of 9.85 billion USD in December of that year. Subsequently, debt levels increased, peaking at 12.07 billion USD in June 2026, before slightly retreating to 11.80 billion USD by September 2026.
Total Capital Expansion: Total capital demonstrated a consistent upward trajectory throughout the majority of the timeframe. From a starting point of 12.83 billion USD in March 2022, the capital base expanded to a peak of 16.13 billion USD in March 2026. This growth in the total capital base acted as a buffer, offsetting the increases in total debt during the latter half of the period.
Debt to Capital Ratio Dynamics: The ratio experienced a sustained downward trend from March 2022 (0.83) through December 2025 (0.70), suggesting a shift toward a more conservative capital structure. Despite the increase in nominal debt levels starting in 2024, the ratio remained significantly lower than 2022 levels because the growth in total capital outpaced the growth in debt. A slight reversal is noted in 2026, where the ratio climbed back to 0.75, correlating with the peak in total debt during that year.

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Sherwin-Williams Co., debt to capital (including operating lease liability) 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)
Short-term borrowings	2,353,600)	2,246,400)	2,376,600)	1,200,500)	1,846,900)	1,706,700)	1,798,500)	662,400)	915,500)	1,358,300)	1,256,300)	374,200)	338,600)	806,200)	1,481,300)	978,100)	945,200)	2,012,000)	1,739,700)
Current portion of long-term debt	1,498,800)	1,498,400)	100)	350,100)	350,500)	1,150,700)	1,150,800)	1,049,200)	1,048,900)	849,700)	1,349,100)	1,098,800)	1,098,200)	499,500)	600)	600)	600)	600)	260,700)
Long-term debt, excluding current portion	7,942,700)	8,327,300)	9,323,100)	9,320,700)	9,318,100)	7,828,900)	7,827,100)	8,176,800)	8,175,300)	8,130,800)	8,129,500)	8,377,900)	8,499,200)	9,095,700)	9,593,100)	9,591,000)	9,588,900)	8,593,600)	8,592,300)
Total debt	11,795,100)	12,072,100)	11,699,800)	10,871,300)	11,515,500)	10,686,300)	10,776,400)	9,888,400)	10,139,700)	10,338,800)	10,734,900)	9,850,900)	9,936,000)	10,401,400)	11,075,000)	10,569,700)	10,534,700)	10,606,200)	10,592,700)
Current portion of operating lease liabilities	487,600)	486,500)	484,700)	479,800)	479,800)	480,700)	470,100)	466,600)	462,800)	457,800)	454,000)	449,300)	441,100)	436,100)	430,200)	425,300)	418,100)	418,100)	416,000)
Long-term operating lease liabilities, excluding current portion	1,699,100)	1,656,800)	1,602,200)	1,591,500)	1,582,300)	1,603,200)	1,573,400)	1,558,300)	1,496,500)	1,502,900)	1,495,100)	1,509,500)	1,502,900)	1,503,200)	1,494,900)	1,512,900)	1,492,400)	1,483,100)	1,481,200)
Total debt (including operating lease liability)	13,981,800)	14,215,400)	13,786,700)	12,942,600)	13,577,600)	12,770,200)	12,819,900)	11,913,300)	12,099,000)	12,299,500)	12,684,000)	11,809,700)	11,880,000)	12,340,700)	13,000,100)	12,507,900)	12,445,200)	12,507,400)	12,489,900)
Shareholders’ equity	3,976,700)	3,854,700)	4,431,100)	4,598,300)	4,425,300)	4,400,900)	4,130,100)	4,051,200)	4,156,100)	3,751,800)	3,503,700)	3,715,800)	3,780,000)	3,631,100)	3,166,800)	3,102,100)	2,597,800)	2,224,600)	2,234,300)
Total capital (including operating lease liability)	17,958,500)	18,070,100)	18,217,800)	17,540,900)	18,002,900)	17,171,100)	16,950,000)	15,964,500)	16,255,100)	16,051,300)	16,187,700)	15,525,500)	15,660,000)	15,971,800)	16,166,900)	15,610,000)	15,043,000)	14,732,000)	14,724,200)
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.78	0.79	0.76	0.74	0.75	0.74	0.76	0.75	0.74	0.77	0.78	0.76	0.76	0.77	0.80	0.80	0.83	0.85	0.85

¹ Q3 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,981,800 ÷ 17,958,500 = 0.78

The financial data indicates a general improvement in the solvency position from early 2022 through 2025, followed by a moderate increase in leverage during the first half of 2026. While absolute debt levels fluctuated, the proportion of debt relative to total capital generally declined before stabilizing at a level lower than the initial period.

Total Debt Trends: Total debt, including operating lease liabilities, remained relatively range-bound between approximately $11.8 billion and $13.0 billion from March 2022 through March 2024. A period of relative stability was observed between 2023 and 2024, with a low point reached in December 2023 at $11.81 billion. However, a distinct upward trend emerged starting in 2025, with debt increasing to a peak of $14.22 billion in June 2026.
Total Capital Expansion: Total capital exhibited a consistent upward trajectory over the analyzed period. Starting at $14.72 billion in March 2022, the capital base expanded to $17.96 billion by September 2026. This steady growth in the total capital base served as a buffer, offsetting some of the increases in absolute debt and contributing to the overall stability of the solvency ratio.
Debt to Capital Ratio Analysis: The debt to capital ratio experienced a gradual decline from its peak of 0.85 in the first half of 2022, reaching a minimum of 0.74 in June 2023 and again in June and December 2025. This indicates a period of deleveraging or a faster growth rate of equity/capital relative to debt. In 2026, the ratio saw a slight uptick, rising to 0.79 in June 2026 and settling at 0.78 by September 2026, though it remained below the levels observed in 2022.

In summary, the organization successfully reduced its reliance on debt relative to its total capital base between 2022 and 2025. Although absolute debt levels rose toward the end of the period, the concurrent expansion of total capital prevented the solvency ratio from returning to its 2022 highs, maintaining a more optimized capital structure.

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Sherwin-Williams Co., debt to assets 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)
Short-term borrowings	2,353,600)	2,246,400)	2,376,600)	1,200,500)	1,846,900)	1,706,700)	1,798,500)	662,400)	915,500)	1,358,300)	1,256,300)	374,200)	338,600)	806,200)	1,481,300)	978,100)	945,200)	2,012,000)	1,739,700)
Current portion of long-term debt	1,498,800)	1,498,400)	100)	350,100)	350,500)	1,150,700)	1,150,800)	1,049,200)	1,048,900)	849,700)	1,349,100)	1,098,800)	1,098,200)	499,500)	600)	600)	600)	600)	260,700)
Long-term debt, excluding current portion	7,942,700)	8,327,300)	9,323,100)	9,320,700)	9,318,100)	7,828,900)	7,827,100)	8,176,800)	8,175,300)	8,130,800)	8,129,500)	8,377,900)	8,499,200)	9,095,700)	9,593,100)	9,591,000)	9,588,900)	8,593,600)	8,592,300)
Total debt	11,795,100)	12,072,100)	11,699,800)	10,871,300)	11,515,500)	10,686,300)	10,776,400)	9,888,400)	10,139,700)	10,338,800)	10,734,900)	9,850,900)	9,936,000)	10,401,400)	11,075,000)	10,569,700)	10,534,700)	10,606,200)	10,592,700)

Total assets	26,961,400)	26,951,400)	26,378,700)	25,901,700)	26,206,400)	25,363,600)	24,636,100)	23,632,600)	23,968,300)	23,734,000)	23,428,100)	22,954,400)	23,004,500)	23,166,100)	23,129,900)	22,594,000)	22,245,800)	22,052,800)	21,730,400)
Solvency Ratio
Debt to assets¹	0.44	0.45	0.44	0.42	0.44	0.42	0.44	0.42	0.42	0.44	0.46	0.43	0.43	0.45	0.48	0.47	0.47	0.48	0.49
Benchmarks
Debt to Assets, Competitors²
Linde plc	0.30	0.32	0.30	0.31	0.30	0.30	0.29	0.27	0.27	0.27	0.25	0.24	0.23	0.22	0.23	0.22	0.21	0.21	0.20

¹ Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 11,795,100 ÷ 26,961,400 = 0.44

² Click competitor name to see calculations.

The solvency position of the company exhibits a general trend of stability with a slight improvement in the debt-to-assets ratio over the analyzed period. The ratio began at 0.49 in March 2022 and concluded at 0.44 in September 2026, indicating a marginal reduction in the proportion of assets financed by debt.

Total Asset Expansion: A consistent upward trajectory in total assets is evident, increasing from 21,730,400 thousand USD in March 2022 to 26,961,400 thousand USD by September 2026. This steady growth in the asset base has served as a stabilizing factor, preventing the debt-to-assets ratio from increasing significantly despite periods of higher borrowing.
Debt Level Volatility: Total debt levels exhibited periodic fluctuations rather than a linear trend. A notable decline occurred through 2023, reaching a low of 9,850,900 thousand USD in December of that year. This was followed by a gradual increase in leverage, peaking at 12,072,100 thousand USD in June 2026, before settling at 11,795,100 thousand USD by the end of the period.
Solvency Ratio Dynamics: The debt-to-assets ratio experienced a downward trend from March 2022 (0.49) to December 2023 (0.43), driven by a combination of asset growth and debt reduction. Between June 2024 and December 2025, the ratio reached its lowest plateau of 0.42. The subsequent rise to 0.44 and 0.45 in 2026 reflects a period where debt accumulation slightly outpaced asset growth, though the overall ratio remains below the initial 2022 levels.

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Sherwin-Williams Co., debt to assets (including operating lease liability) 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)
Short-term borrowings	2,353,600)	2,246,400)	2,376,600)	1,200,500)	1,846,900)	1,706,700)	1,798,500)	662,400)	915,500)	1,358,300)	1,256,300)	374,200)	338,600)	806,200)	1,481,300)	978,100)	945,200)	2,012,000)	1,739,700)
Current portion of long-term debt	1,498,800)	1,498,400)	100)	350,100)	350,500)	1,150,700)	1,150,800)	1,049,200)	1,048,900)	849,700)	1,349,100)	1,098,800)	1,098,200)	499,500)	600)	600)	600)	600)	260,700)
Long-term debt, excluding current portion	7,942,700)	8,327,300)	9,323,100)	9,320,700)	9,318,100)	7,828,900)	7,827,100)	8,176,800)	8,175,300)	8,130,800)	8,129,500)	8,377,900)	8,499,200)	9,095,700)	9,593,100)	9,591,000)	9,588,900)	8,593,600)	8,592,300)
Total debt	11,795,100)	12,072,100)	11,699,800)	10,871,300)	11,515,500)	10,686,300)	10,776,400)	9,888,400)	10,139,700)	10,338,800)	10,734,900)	9,850,900)	9,936,000)	10,401,400)	11,075,000)	10,569,700)	10,534,700)	10,606,200)	10,592,700)
Current portion of operating lease liabilities	487,600)	486,500)	484,700)	479,800)	479,800)	480,700)	470,100)	466,600)	462,800)	457,800)	454,000)	449,300)	441,100)	436,100)	430,200)	425,300)	418,100)	418,100)	416,000)
Long-term operating lease liabilities, excluding current portion	1,699,100)	1,656,800)	1,602,200)	1,591,500)	1,582,300)	1,603,200)	1,573,400)	1,558,300)	1,496,500)	1,502,900)	1,495,100)	1,509,500)	1,502,900)	1,503,200)	1,494,900)	1,512,900)	1,492,400)	1,483,100)	1,481,200)
Total debt (including operating lease liability)	13,981,800)	14,215,400)	13,786,700)	12,942,600)	13,577,600)	12,770,200)	12,819,900)	11,913,300)	12,099,000)	12,299,500)	12,684,000)	11,809,700)	11,880,000)	12,340,700)	13,000,100)	12,507,900)	12,445,200)	12,507,400)	12,489,900)

Total assets	26,961,400)	26,951,400)	26,378,700)	25,901,700)	26,206,400)	25,363,600)	24,636,100)	23,632,600)	23,968,300)	23,734,000)	23,428,100)	22,954,400)	23,004,500)	23,166,100)	23,129,900)	22,594,000)	22,245,800)	22,052,800)	21,730,400)
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.52	0.53	0.52	0.50	0.52	0.50	0.52	0.50	0.50	0.52	0.54	0.51	0.52	0.53	0.56	0.55	0.56	0.57	0.57

¹ Q3 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,981,800 ÷ 26,961,400 = 0.52

The solvency profile exhibits a general trend of stabilization and slight improvement in leverage over the period from March 2022 to September 2026. While total debt levels have experienced periodic fluctuations, the steady expansion of the asset base has resulted in a overall reduction and stabilization of the debt-to-assets ratio.

Debt to Assets Ratio Evolution: The ratio commenced at 0.57 in March 2022 and trended downward to reach a minimum of 0.50 by September 2024. In the subsequent period through September 2026, the ratio remained range-bound between 0.50 and 0.53. This indicates a transition from a higher leverage position to a more stable and slightly lower solvency risk profile.
Total Assets Growth: A consistent upward trajectory in total assets is evident, with values rising from 21.7 billion USD in March 2022 to approximately 27.0 billion USD by September 2026. This growth demonstrates a steady increase in the company's resource base, which serves to cushion the impact of debt obligations.
Total Debt Dynamics: Total debt, including operating lease liabilities, showed cyclical movement. A period of reduction occurred between March 2022 and December 2023, where debt fell from 12.5 billion USD to a low of 11.8 billion USD. This was followed by a gradual increase, peaking at 14.2 billion USD in March 2026. Because asset growth occurred concurrently with these debt increases, the relative solvency ratio did not return to the peak levels seen in early 2022.

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Sherwin-Williams Co., financial leverage 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)
Total assets	26,961,400)	26,951,400)	26,378,700)	25,901,700)	26,206,400)	25,363,600)	24,636,100)	23,632,600)	23,968,300)	23,734,000)	23,428,100)	22,954,400)	23,004,500)	23,166,100)	23,129,900)	22,594,000)	22,245,800)	22,052,800)	21,730,400)
Shareholders’ equity	3,976,700)	3,854,700)	4,431,100)	4,598,300)	4,425,300)	4,400,900)	4,130,100)	4,051,200)	4,156,100)	3,751,800)	3,503,700)	3,715,800)	3,780,000)	3,631,100)	3,166,800)	3,102,100)	2,597,800)	2,224,600)	2,234,300)
Solvency Ratio
Financial leverage¹	6.78	6.99	5.95	5.63	5.92	5.76	5.97	5.83	5.77	6.33	6.69	6.18	6.09	6.38	7.30	7.28	8.56	9.91	9.73
Benchmarks
Financial Leverage, Competitors²
Linde plc	2.23	2.26	2.24	2.27	2.23	2.23	2.17	2.10	2.11	2.10	2.07	2.03	2.00	1.97	2.01	1.99	1.98	1.96	1.93

¹ Q3 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 26,961,400 ÷ 3,976,700 = 6.78

² Click competitor name to see calculations.

An analysis of the solvency metrics reveals a significant long-term reduction in financial leverage from 2022 through 2025, followed by a moderate increase in the first half of 2026.

Asset Growth Trends: Total assets exhibited a consistent upward trajectory, increasing from US$ 21.7 billion in March 2022 to US$ 26.9 billion by September 2026. This steady expansion indicates a growth in the company's resource base over the observed period.
Equity Development: Shareholders' equity grew substantially from US$ 2.2 billion in March 2022 to a peak of US$ 4.6 billion in September 2025. This period of accumulation provided a stronger capital cushion, although a notable contraction occurred in June 2026, where equity fell to US$ 3.8 billion before stabilizing slightly at US$ 3.9 billion by September 2026.
Financial Leverage Dynamics: The financial leverage ratio experienced a pronounced downward trend for the majority of the period, falling from a peak of 9.73 in March 2022 to a minimum of 5.63 in December 2025. This deleveraging process indicates a decreased reliance on debt relative to equity. However, this trend reversed in 2026, with the ratio rising to 6.99 in June 2026 and 6.78 in September 2026, directly correlating with the decrease in shareholders' equity.

The data suggests a multi-year strategic shift toward a more conservative capital structure that culminated in late 2025. The subsequent increase in leverage during 2026 suggests a recent change in the balance sheet composition, potentially due to capital distributions or other equity-reducing activities, which has slightly elevated the financial risk profile compared to the 2025 lows.

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Sherwin-Williams Co., interest coverage 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)
Net income	821,000)	843,600)	534,700)	476,800)	833,100)	754,700)	503,900)	480,100)	806,200)	889,900)	505,200)	356,200)	761,500)	793,700)	477,400)	386,300)	685,100)	577,900)	370,800)
Add: Income tax expense	242,500)	268,900)	145,100)	162,200)	227,400)	231,000)	149,100)	135,500)	216,600)	283,500)	134,800)	117,800)	247,500)	218,400)	137,400)	108,600)	192,100)	162,000)	90,300)
Add: Interest expense	139,300)	135,900)	131,600)	131,600)	117,200)	112,400)	103,800)	98,500)	103,400)	110,800)	103,000)	94,600)	101,900)	111,700)	109,300)	108,300)	101,200)	92,900)	88,400)
Earnings before interest and tax (EBIT)	1,202,800)	1,248,400)	811,400)	770,600)	1,177,700)	1,098,100)	756,800)	714,100)	1,126,200)	1,284,200)	743,000)	568,600)	1,110,900)	1,123,800)	724,100)	603,200)	978,400)	832,800)	549,500)
Solvency Ratio
Interest coverage¹	7.49	7.76	7.83	8.18	8.67	8.84	9.32	9.30	9.04	9.03	8.62	8.45	8.26	7.97	7.62	7.58	7.50	7.07	7.47

¹ Q3 2026 Calculation
Interest coverage = (EBIT_{Q3 2026} + EBIT_{Q2 2026} + EBIT_{Q1 2026} + EBIT_{Q4 2025}) ÷ (Interest expense_{Q3 2026} + Interest expense_{Q2 2026} + Interest expense_{Q1 2026} + Interest expense_{Q4 2025})
= (1,202,800 + 1,248,400 + 811,400 + 770,600) ÷ (139,300 + 135,900 + 131,600 + 131,600) = 7.49

The interest coverage ratio exhibits a cyclical trend characterized by a steady increase through late 2024, followed by a gradual decline throughout 2025 and 2026. The ratio improved from a low of 7.07 in June 2022 to a peak of 9.32 in March 2024, before retreating to 7.49 by September 2026. This fluctuation reflects the interplay between seasonal earnings volatility and a long-term increase in debt servicing costs.

Earnings Before Interest and Tax (EBIT) Performance: EBIT demonstrates significant quarterly seasonality, with peak earnings consistently occurring in the second and third quarters of each year. For instance, EBIT frequently exceeds 1.1 billion US$ during June and September periods but drops significantly during December and March. Despite this volatility, there is a general upward trend in the earnings floor and ceiling over the analyzed period, with the September 2026 EBIT of 1,202.8 million US$ representing a substantial increase over the March 2022 value of 549.5 million US$.
Interest Expense Trajectory: Interest expenses show a consistent and gradual upward trajectory. Starting at 88.4 million US$ in March 2022, the expense rose steadily, surpassing 130 million US$ by December 2025 and reaching 139.3 million US$ by September 2026. Unlike EBIT, interest expenses do not exhibit seasonal fluctuations, indicating a structural increase in the cost of debt or an expansion of the total debt load over time.
Interest Coverage Ratio Dynamics: The coverage ratio improved during the 2023 and 2024 periods, driven by EBIT growth that outpaced the rise in interest expenses. This culminated in a period of peak solvency strength between December 2023 and March 2024, where the ratio remained above 9.0. However, beginning in June 2025, the ratio entered a sustained decline. This downturn is attributed to a combination of decelerating EBIT growth in the later quarters and the continued climb in interest expenses, which compressed the margin of safety for debt servicing.

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