Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Sherwin-Williams Co., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.83 | 0.99 | 0.88 | 1.00 | 1.02 | |
| Quick ratio | 0.41 | 0.46 | 0.44 | 0.50 | 0.50 | |
| Cash ratio | 0.04 | 0.03 | 0.03 | 0.05 | 0.04 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Sherwin-Williams Co. current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Sherwin-Williams Co. quick ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Sherwin-Williams Co. cash ratio improved from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Sherwin-Williams Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 5,512,900) | 5,907,700) | 5,053,700) | 4,591,400) | 4,631,700) | |
| Current liabilities | 6,626,900) | 5,960,700) | 5,719,500) | 4,594,400) | 4,521,900) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.83 | 0.99 | 0.88 | 1.00 | 1.02 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Linde plc | 0.80 | 0.79 | 0.74 | 0.80 | 0.85 | |
| Current Ratio, Sector | ||||||
| Chemicals | 0.81 | 0.84 | 0.79 | 0.85 | 0.90 | |
| Current Ratio, Industry | ||||||
| Materials | 1.14 | 1.20 | 1.19 | 1.14 | 1.15 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,512,900 ÷ 6,626,900 = 0.83
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Sherwin-Williams Co. current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Quick Ratio
Sherwin-Williams Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 276,800) | 198,800) | 165,700) | 226,600) | 161,800) | |
| Accounts receivable, less allowance | 2,467,900) | 2,563,600) | 2,352,400) | 2,078,100) | 2,088,900) | |
| Total quick assets | 2,744,700) | 2,762,400) | 2,518,100) | 2,304,700) | 2,250,700) | |
| Current liabilities | 6,626,900) | 5,960,700) | 5,719,500) | 4,594,400) | 4,521,900) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.41 | 0.46 | 0.44 | 0.50 | 0.50 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Linde plc | 0.61 | 0.61 | 0.55 | 0.59 | 0.61 | |
| Quick Ratio, Sector | ||||||
| Chemicals | 0.55 | 0.57 | 0.52 | 0.57 | 0.58 | |
| Quick Ratio, Industry | ||||||
| Materials | 0.71 | 0.80 | 0.78 | 0.71 | 0.64 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,744,700 ÷ 6,626,900 = 0.41
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Sherwin-Williams Co. quick ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Cash Ratio
Sherwin-Williams Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 276,800) | 198,800) | 165,700) | 226,600) | 161,800) | |
| Total cash assets | 276,800) | 198,800) | 165,700) | 226,600) | 161,800) | |
| Current liabilities | 6,626,900) | 5,960,700) | 5,719,500) | 4,594,400) | 4,521,900) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.04 | 0.03 | 0.03 | 0.05 | 0.04 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Linde plc | 0.30 | 0.33 | 0.21 | 0.27 | 0.22 | |
| Cash Ratio, Sector | ||||||
| Chemicals | 0.22 | 0.25 | 0.15 | 0.22 | 0.17 | |
| Cash Ratio, Industry | ||||||
| Materials | 0.39 | 0.48 | 0.44 | 0.35 | 0.25 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 276,800 ÷ 6,626,900 = 0.04
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Sherwin-Williams Co. cash ratio improved from 2021 to 2022 and from 2022 to 2023. |