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: 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).
| 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 2021 to 2022 and from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Sherwin-Williams Co. debt to assets ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Sherwin-Williams Co. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Sherwin-Williams Co. interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Sherwin-Williams Co., debt to equity 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) | ||||||
| Short-term borrowings | 374,200) | 978,100) | 763,500) | 100) | 204,700) | |
| Current portion of long-term debt | 1,098,800) | 600) | 260,600) | 25,100) | 429,800) | |
| Long-term debt, excluding current portion | 8,377,900) | 9,591,000) | 8,590,900) | 8,266,900) | 8,050,700) | |
| Total debt | 9,850,900) | 10,569,700) | 9,615,000) | 8,292,100) | 8,685,200) | |
| Shareholders’ equity | 3,715,800) | 3,102,100) | 2,437,200) | 3,610,800) | 4,123,300) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 2.65 | 3.41 | 3.95 | 2.30 | 2.11 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Linde plc | 0.49 | 0.45 | 0.33 | 0.34 | 0.28 | |
| Debt to Equity, Sector | ||||||
| Chemicals | 0.68 | 0.66 | 0.52 | 0.48 | 0.43 | |
| Debt to Equity, Industry | ||||||
| Materials | 0.65 | 0.67 | 0.55 | 0.56 | 0.52 | |
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 9,850,900 ÷ 3,715,800 = 2.65
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 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Sherwin-Williams Co., debt to equity (including operating lease liability) 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) | ||||||
| Short-term borrowings | 374,200) | 978,100) | 763,500) | 100) | 204,700) | |
| Current portion of long-term debt | 1,098,800) | 600) | 260,600) | 25,100) | 429,800) | |
| Long-term debt, excluding current portion | 8,377,900) | 9,591,000) | 8,590,900) | 8,266,900) | 8,050,700) | |
| Total debt | 9,850,900) | 10,569,700) | 9,615,000) | 8,292,100) | 8,685,200) | |
| Current portion of operating lease liabilities | 449,300) | 425,300) | 409,700) | 387,300) | 371,600) | |
| Long-term operating lease liabilities, excluding current portion | 1,509,500) | 1,512,900) | 1,470,700) | 1,434,100) | 1,370,700) | |
| Total debt (including operating lease liability) | 11,809,700) | 12,507,900) | 11,495,400) | 10,113,500) | 10,427,500) | |
| Shareholders’ equity | 3,715,800) | 3,102,100) | 2,437,200) | 3,610,800) | 4,123,300) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 3.18 | 4.03 | 4.72 | 2.80 | 2.53 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.51 | 0.47 | 0.35 | 0.36 | 0.30 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.74 | 0.73 | 0.57 | 0.54 | 0.48 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Materials | 0.70 | 0.72 | 0.60 | 0.61 | 0.57 | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 11,809,700 ÷ 3,715,800 = 3.18
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 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Sherwin-Williams Co., debt to capital 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) | ||||||
| Short-term borrowings | 374,200) | 978,100) | 763,500) | 100) | 204,700) | |
| Current portion of long-term debt | 1,098,800) | 600) | 260,600) | 25,100) | 429,800) | |
| Long-term debt, excluding current portion | 8,377,900) | 9,591,000) | 8,590,900) | 8,266,900) | 8,050,700) | |
| Total debt | 9,850,900) | 10,569,700) | 9,615,000) | 8,292,100) | 8,685,200) | |
| Shareholders’ equity | 3,715,800) | 3,102,100) | 2,437,200) | 3,610,800) | 4,123,300) | |
| Total capital | 13,566,700) | 13,671,800) | 12,052,200) | 11,902,900) | 12,808,500) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.73 | 0.77 | 0.80 | 0.70 | 0.68 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Linde plc | 0.33 | 0.31 | 0.25 | 0.26 | 0.22 | |
| Debt to Capital, Sector | ||||||
| Chemicals | 0.40 | 0.40 | 0.34 | 0.33 | 0.30 | |
| Debt to Capital, Industry | ||||||
| Materials | 0.39 | 0.40 | 0.36 | 0.36 | 0.34 | |
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
Debt to capital = Total debt ÷ Total capital
= 9,850,900 ÷ 13,566,700 = 0.73
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 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Sherwin-Williams Co., debt to capital (including operating lease liability) 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) | ||||||
| Short-term borrowings | 374,200) | 978,100) | 763,500) | 100) | 204,700) | |
| Current portion of long-term debt | 1,098,800) | 600) | 260,600) | 25,100) | 429,800) | |
| Long-term debt, excluding current portion | 8,377,900) | 9,591,000) | 8,590,900) | 8,266,900) | 8,050,700) | |
| Total debt | 9,850,900) | 10,569,700) | 9,615,000) | 8,292,100) | 8,685,200) | |
| Current portion of operating lease liabilities | 449,300) | 425,300) | 409,700) | 387,300) | 371,600) | |
| Long-term operating lease liabilities, excluding current portion | 1,509,500) | 1,512,900) | 1,470,700) | 1,434,100) | 1,370,700) | |
| Total debt (including operating lease liability) | 11,809,700) | 12,507,900) | 11,495,400) | 10,113,500) | 10,427,500) | |
| Shareholders’ equity | 3,715,800) | 3,102,100) | 2,437,200) | 3,610,800) | 4,123,300) | |
| Total capital (including operating lease liability) | 15,525,500) | 15,610,000) | 13,932,600) | 13,724,300) | 14,550,800) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.76 | 0.80 | 0.83 | 0.74 | 0.72 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.34 | 0.32 | 0.26 | 0.27 | 0.23 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.43 | 0.42 | 0.36 | 0.35 | 0.32 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Materials | 0.41 | 0.42 | 0.38 | 0.38 | 0.36 | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 11,809,700 ÷ 15,525,500 = 0.76
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 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Sherwin-Williams Co., debt to assets 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) | ||||||
| Short-term borrowings | 374,200) | 978,100) | 763,500) | 100) | 204,700) | |
| Current portion of long-term debt | 1,098,800) | 600) | 260,600) | 25,100) | 429,800) | |
| Long-term debt, excluding current portion | 8,377,900) | 9,591,000) | 8,590,900) | 8,266,900) | 8,050,700) | |
| Total debt | 9,850,900) | 10,569,700) | 9,615,000) | 8,292,100) | 8,685,200) | |
| Total assets | 22,954,400) | 22,594,000) | 20,666,700) | 20,401,600) | 20,496,200) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.43 | 0.47 | 0.47 | 0.41 | 0.42 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Linde plc | 0.24 | 0.23 | 0.18 | 0.18 | 0.16 | |
| Debt to Assets, Sector | ||||||
| Chemicals | 0.28 | 0.28 | 0.23 | 0.23 | 0.21 | |
| Debt to Assets, Industry | ||||||
| Materials | 0.25 | 0.26 | 0.22 | 0.23 | 0.22 | |
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
Debt to assets = Total debt ÷ Total assets
= 9,850,900 ÷ 22,954,400 = 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Assets (including Operating Lease Liability)
Sherwin-Williams Co., debt to assets (including operating lease liability) 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) | ||||||
| Short-term borrowings | 374,200) | 978,100) | 763,500) | 100) | 204,700) | |
| Current portion of long-term debt | 1,098,800) | 600) | 260,600) | 25,100) | 429,800) | |
| Long-term debt, excluding current portion | 8,377,900) | 9,591,000) | 8,590,900) | 8,266,900) | 8,050,700) | |
| Total debt | 9,850,900) | 10,569,700) | 9,615,000) | 8,292,100) | 8,685,200) | |
| Current portion of operating lease liabilities | 449,300) | 425,300) | 409,700) | 387,300) | 371,600) | |
| Long-term operating lease liabilities, excluding current portion | 1,509,500) | 1,512,900) | 1,470,700) | 1,434,100) | 1,370,700) | |
| Total debt (including operating lease liability) | 11,809,700) | 12,507,900) | 11,495,400) | 10,113,500) | 10,427,500) | |
| Total assets | 22,954,400) | 22,594,000) | 20,666,700) | 20,401,600) | 20,496,200) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.51 | 0.55 | 0.56 | 0.50 | 0.51 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.25 | 0.24 | 0.19 | 0.20 | 0.17 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.31 | 0.31 | 0.26 | 0.25 | 0.24 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Materials | 0.27 | 0.28 | 0.24 | 0.25 | 0.24 | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 11,809,700 ÷ 22,954,400 = 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 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Sherwin-Williams Co., financial leverage 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) | ||||||
| Total assets | 22,954,400) | 22,594,000) | 20,666,700) | 20,401,600) | 20,496,200) | |
| Shareholders’ equity | 3,715,800) | 3,102,100) | 2,437,200) | 3,610,800) | 4,123,300) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 6.18 | 7.28 | 8.48 | 5.65 | 4.97 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Linde plc | 2.03 | 1.99 | 1.85 | 1.86 | 1.76 | |
| Financial Leverage, Sector | ||||||
| Chemicals | 2.39 | 2.37 | 2.20 | 2.13 | 2.01 | |
| Financial Leverage, Industry | ||||||
| Materials | 2.60 | 2.61 | 2.49 | 2.47 | 2.37 | |
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 22,954,400 ÷ 3,715,800 = 6.18
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 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Sherwin-Williams Co., interest coverage 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) | ||||||
| Net income | 2,388,800) | 2,020,100) | 1,864,400) | 2,030,400) | 1,541,300) | |
| Add: Income tax expense | 721,100) | 553,000) | 384,200) | 488,800) | 440,500) | |
| Add: Interest expense | 417,500) | 390,800) | 334,700) | 340,400) | 349,300) | |
| Earnings before interest and tax (EBIT) | 3,527,400) | 2,963,900) | 2,583,300) | 2,859,600) | 2,331,100) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 8.45 | 7.58 | 7.72 | 8.40 | 6.67 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Linde plc | 21.54 | 32.75 | 45.60 | 21.41 | 21.27 | |
| Interest Coverage, Sector | ||||||
| Chemicals | 14.83 | 15.52 | 17.53 | 12.73 | 11.06 | |
| Interest Coverage, Industry | ||||||
| Materials | 14.00 | 14.30 | 15.36 | 8.03 | 5.77 | |
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
Interest coverage = EBIT ÷ Interest expense
= 3,527,400 ÷ 417,500 = 8.45
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Fixed Charge Coverage
Sherwin-Williams Co., fixed charge coverage 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) | ||||||
| Net income | 2,388,800) | 2,020,100) | 1,864,400) | 2,030,400) | 1,541,300) | |
| Add: Income tax expense | 721,100) | 553,000) | 384,200) | 488,800) | 440,500) | |
| Add: Interest expense | 417,500) | 390,800) | 334,700) | 340,400) | 349,300) | |
| Earnings before interest and tax (EBIT) | 3,527,400) | 2,963,900) | 2,583,300) | 2,859,600) | 2,331,100) | |
| Add: Operating lease cost | 528,500) | 498,000) | 478,000) | 464,500) | 452,900) | |
| Earnings before fixed charges and tax | 4,055,900) | 3,461,900) | 3,061,300) | 3,324,100) | 2,784,000) | |
| Interest expense | 417,500) | 390,800) | 334,700) | 340,400) | 349,300) | |
| Operating lease cost | 528,500) | 498,000) | 478,000) | 464,500) | 452,900) | |
| Fixed charges | 946,000) | 888,800) | 812,700) | 804,900) | 802,200) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 4.29 | 3.90 | 3.77 | 4.13 | 3.47 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Linde plc | 12.98 | 13.32 | 13.02 | 7.79 | 6.92 | |
| Fixed Charge Coverage, Sector | ||||||
| Chemicals | 7.92 | 7.13 | 6.99 | 5.55 | 4.82 | |
| Fixed Charge Coverage, Industry | ||||||
| Materials | 8.89 | 8.68 | 8.75 | 4.84 | 3.58 | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,055,900 ÷ 946,000 = 4.29
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 2021 to 2022 and from 2022 to 2023. |