Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Sherwin-Williams Co., solvency ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt Ratios
Debt to equity 2.49 2.65 3.41 3.95 2.30
Debt to equity (including operating lease liability) 2.99 3.18 4.03 4.72 2.80
Debt to capital 0.71 0.73 0.77 0.80 0.70
Debt to capital (including operating lease liability) 0.75 0.76 0.80 0.83 0.74
Debt to assets 0.43 0.43 0.47 0.47 0.41
Debt to assets (including operating lease liability) 0.51 0.51 0.55 0.56 0.50
Financial leverage 5.83 6.18 7.28 8.48 5.65
Coverage Ratios
Interest coverage 9.30 8.45 7.58 7.72 8.40
Fixed charge coverage 4.53 4.29 3.90 3.77 4.13

Based on: 10-K (reporting date: 2024-12-31), 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).

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 improved from 2022 to 2023 and from 2023 to 2024.
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) improved from 2022 to 2023 and from 2023 to 2024.
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 improved from 2022 to 2023 and from 2023 to 2024.
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) improved from 2022 to 2023 and from 2023 to 2024.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Sherwin-Williams Co. debt to assets ratio improved from 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Sherwin-Williams Co. financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

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 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.

Debt to Equity

Sherwin-Williams Co., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Short-term borrowings 662,400 374,200 978,100 763,500 100
Current portion of long-term debt 1,049,200 1,098,800 600 260,600 25,100
Current portion of finance lease liabilities 3,700
Long-term debt, excluding current portion 8,176,800 8,377,900 9,591,000 8,590,900 8,266,900
Long-term finance lease liabilities, excluding current portion 185,600
Total debt 10,077,700 9,850,900 10,569,700 9,615,000 8,292,100
 
Shareholders’ equity 4,051,200 3,715,800 3,102,100 2,437,200 3,610,800
Solvency Ratio
Debt to equity1 2.49 2.65 3.41 3.95 2.30
Benchmarks
Debt to Equity, Competitors2
Linde plc 0.57 0.49 0.45 0.33 0.34
Debt to Equity, Sector
Chemicals 0.76 0.68 0.66 0.52 0.48
Debt to Equity, Industry
Materials 0.68 0.65 0.67 0.55 0.56

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 10,077,700 ÷ 4,051,200 = 2.49

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 improved from 2022 to 2023 and from 2023 to 2024.

Debt to Equity (including Operating Lease Liability)

Sherwin-Williams Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Short-term borrowings 662,400 374,200 978,100 763,500 100
Current portion of long-term debt 1,049,200 1,098,800 600 260,600 25,100
Current portion of finance lease liabilities 3,700
Long-term debt, excluding current portion 8,176,800 8,377,900 9,591,000 8,590,900 8,266,900
Long-term finance lease liabilities, excluding current portion 185,600
Total debt 10,077,700 9,850,900 10,569,700 9,615,000 8,292,100
Current portion of operating lease liabilities 466,600 449,300 425,300 409,700 387,300
Long-term operating lease liabilities, excluding current portion 1,558,300 1,509,500 1,512,900 1,470,700 1,434,100
Total debt (including operating lease liability) 12,102,600 11,809,700 12,507,900 11,495,400 10,113,500
 
Shareholders’ equity 4,051,200 3,715,800 3,102,100 2,437,200 3,610,800
Solvency Ratio
Debt to equity (including operating lease liability)1 2.99 3.18 4.03 4.72 2.80
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Linde plc 0.59 0.51 0.47 0.35 0.36
Debt to Equity (including Operating Lease Liability), Sector
Chemicals 0.82 0.74 0.73 0.57 0.54
Debt to Equity (including Operating Lease Liability), Industry
Materials 0.74 0.70 0.72 0.60 0.61

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 12,102,600 ÷ 4,051,200 = 2.99

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) improved from 2022 to 2023 and from 2023 to 2024.

Debt to Capital

Sherwin-Williams Co., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Short-term borrowings 662,400 374,200 978,100 763,500 100
Current portion of long-term debt 1,049,200 1,098,800 600 260,600 25,100
Current portion of finance lease liabilities 3,700
Long-term debt, excluding current portion 8,176,800 8,377,900 9,591,000 8,590,900 8,266,900
Long-term finance lease liabilities, excluding current portion 185,600
Total debt 10,077,700 9,850,900 10,569,700 9,615,000 8,292,100
Shareholders’ equity 4,051,200 3,715,800 3,102,100 2,437,200 3,610,800
Total capital 14,128,900 13,566,700 13,671,800 12,052,200 11,902,900
Solvency Ratio
Debt to capital1 0.71 0.73 0.77 0.80 0.70
Benchmarks
Debt to Capital, Competitors2
Linde plc 0.36 0.33 0.31 0.25 0.26
Debt to Capital, Sector
Chemicals 0.43 0.40 0.40 0.34 0.33
Debt to Capital, Industry
Materials 0.41 0.39 0.40 0.36 0.36

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,077,700 ÷ 14,128,900 = 0.71

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 improved from 2022 to 2023 and from 2023 to 2024.

Debt to Capital (including Operating Lease Liability)

Sherwin-Williams Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Short-term borrowings 662,400 374,200 978,100 763,500 100
Current portion of long-term debt 1,049,200 1,098,800 600 260,600 25,100
Current portion of finance lease liabilities 3,700
Long-term debt, excluding current portion 8,176,800 8,377,900 9,591,000 8,590,900 8,266,900
Long-term finance lease liabilities, excluding current portion 185,600
Total debt 10,077,700 9,850,900 10,569,700 9,615,000 8,292,100
Current portion of operating lease liabilities 466,600 449,300 425,300 409,700 387,300
Long-term operating lease liabilities, excluding current portion 1,558,300 1,509,500 1,512,900 1,470,700 1,434,100
Total debt (including operating lease liability) 12,102,600 11,809,700 12,507,900 11,495,400 10,113,500
Shareholders’ equity 4,051,200 3,715,800 3,102,100 2,437,200 3,610,800
Total capital (including operating lease liability) 16,153,800 15,525,500 15,610,000 13,932,600 13,724,300
Solvency Ratio
Debt to capital (including operating lease liability)1 0.75 0.76 0.80 0.83 0.74
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Linde plc 0.37 0.34 0.32 0.26 0.27
Debt to Capital (including Operating Lease Liability), Sector
Chemicals 0.45 0.43 0.42 0.36 0.35
Debt to Capital (including Operating Lease Liability), Industry
Materials 0.43 0.41 0.42 0.38 0.38

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 12,102,600 ÷ 16,153,800 = 0.75

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) improved from 2022 to 2023 and from 2023 to 2024.

Debt to Assets

Sherwin-Williams Co., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Short-term borrowings 662,400 374,200 978,100 763,500 100
Current portion of long-term debt 1,049,200 1,098,800 600 260,600 25,100
Current portion of finance lease liabilities 3,700
Long-term debt, excluding current portion 8,176,800 8,377,900 9,591,000 8,590,900 8,266,900
Long-term finance lease liabilities, excluding current portion 185,600
Total debt 10,077,700 9,850,900 10,569,700 9,615,000 8,292,100
 
Total assets 23,632,600 22,954,400 22,594,000 20,666,700 20,401,600
Solvency Ratio
Debt to assets1 0.43 0.43 0.47 0.47 0.41
Benchmarks
Debt to Assets, Competitors2
Linde plc 0.27 0.24 0.23 0.18 0.18
Debt to Assets, Sector
Chemicals 0.31 0.28 0.28 0.23 0.23
Debt to Assets, Industry
Materials 0.26 0.25 0.26 0.22 0.23

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,077,700 ÷ 23,632,600 = 0.43

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 2022 to 2023 and from 2023 to 2024.

Debt to Assets (including Operating Lease Liability)

Sherwin-Williams Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Short-term borrowings 662,400 374,200 978,100 763,500 100
Current portion of long-term debt 1,049,200 1,098,800 600 260,600 25,100
Current portion of finance lease liabilities 3,700
Long-term debt, excluding current portion 8,176,800 8,377,900 9,591,000 8,590,900 8,266,900
Long-term finance lease liabilities, excluding current portion 185,600
Total debt 10,077,700 9,850,900 10,569,700 9,615,000 8,292,100
Current portion of operating lease liabilities 466,600 449,300 425,300 409,700 387,300
Long-term operating lease liabilities, excluding current portion 1,558,300 1,509,500 1,512,900 1,470,700 1,434,100
Total debt (including operating lease liability) 12,102,600 11,809,700 12,507,900 11,495,400 10,113,500
 
Total assets 23,632,600 22,954,400 22,594,000 20,666,700 20,401,600
Solvency Ratio
Debt to assets (including operating lease liability)1 0.51 0.51 0.55 0.56 0.50
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Linde plc 0.28 0.25 0.24 0.19 0.20
Debt to Assets (including Operating Lease Liability), Sector
Chemicals 0.33 0.31 0.31 0.26 0.25
Debt to Assets (including Operating Lease Liability), Industry
Materials 0.28 0.27 0.28 0.24 0.25

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 12,102,600 ÷ 23,632,600 = 0.51

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 2022 to 2023 and from 2023 to 2024.

Financial Leverage

Sherwin-Williams Co., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Total assets 23,632,600 22,954,400 22,594,000 20,666,700 20,401,600
Shareholders’ equity 4,051,200 3,715,800 3,102,100 2,437,200 3,610,800
Solvency Ratio
Financial leverage1 5.83 6.18 7.28 8.48 5.65
Benchmarks
Financial Leverage, Competitors2
Linde plc 2.10 2.03 1.99 1.85 1.86
Financial Leverage, Sector
Chemicals 2.46 2.39 2.37 2.20 2.13
Financial Leverage, Industry
Materials 2.66 2.60 2.61 2.49 2.47

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 23,632,600 ÷ 4,051,200 = 5.83

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 decreased from 2022 to 2023 and from 2023 to 2024.

Interest Coverage

Sherwin-Williams Co., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Net income 2,681,400 2,388,800 2,020,100 1,864,400 2,030,400
Add: Income tax expense 770,400 721,100 553,000 384,200 488,800
Add: Interest expense 415,700 417,500 390,800 334,700 340,400
Earnings before interest and tax (EBIT) 3,867,500 3,527,400 2,963,900 2,583,300 2,859,600
Solvency Ratio
Interest coverage1 9.30 8.45 7.58 7.72 8.40
Benchmarks
Interest Coverage, Competitors2
Linde plc 19.06 21.54 32.75 45.60 21.41
Interest Coverage, Sector
Chemicals 14.55 14.83 15.52 17.53 12.73
Interest Coverage, Industry
Materials 16.68 14.00 14.30 15.36 8.03

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,867,500 ÷ 415,700 = 9.30

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 2022 to 2023 and from 2023 to 2024.

Fixed Charge Coverage

Sherwin-Williams Co., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Net income 2,681,400 2,388,800 2,020,100 1,864,400 2,030,400
Add: Income tax expense 770,400 721,100 553,000 384,200 488,800
Add: Interest expense 415,700 417,500 390,800 334,700 340,400
Earnings before interest and tax (EBIT) 3,867,500 3,527,400 2,963,900 2,583,300 2,859,600
Add: Operating lease cost 562,400 528,500 498,000 478,000 464,500
Earnings before fixed charges and tax 4,429,900 4,055,900 3,461,900 3,061,300 3,324,100
 
Interest expense 415,700 417,500 390,800 334,700 340,400
Operating lease cost 562,400 528,500 498,000 478,000 464,500
Fixed charges 978,100 946,000 888,800 812,700 804,900
Solvency Ratio
Fixed charge coverage1 4.53 4.29 3.90 3.77 4.13
Benchmarks
Fixed Charge Coverage, Competitors2
Linde plc 12.10 12.98 13.32 13.02 7.79
Fixed Charge Coverage, Sector
Chemicals 7.91 7.92 7.13 6.99 5.55
Fixed Charge Coverage, Industry
Materials 9.98 8.89 8.68 8.75 4.84

Based on: 10-K (reporting date: 2024-12-31), 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).

1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,429,900 ÷ 978,100 = 4.53

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 2022 to 2023 and from 2023 to 2024.