Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
Sherwin-Williams Co., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency position of the company demonstrates a generally improving trend over the analyzed period, from March 31, 2022, to December 31, 2025. A consistent decrease in leverage ratios is observed, although some fluctuations occur. Interest coverage remains robust throughout the period, indicating a strong ability to meet interest obligations.
- Debt to Equity
- The debt to equity ratio exhibits a declining trend overall, moving from 4.74 in March 2022 to 2.36 in December 2025. The most significant decrease occurred between March 2022 and December 2022, falling from 4.74 to 3.41. A slight increase is noted in the most recent quarters, from 2.44 in September 2024 to 2.61 in March 2025, but remains lower than levels seen earlier in the period.
- Debt to Equity (Including Operating Lease Liability)
- Similar to the standard debt to equity ratio, this metric also shows a decreasing trend, starting at 5.59 in March 2022 and ending at 2.81 in December 2025. The pattern of decline mirrors that of the debt to equity ratio, with a substantial reduction in the initial period and some fluctuation towards the end of the observed timeframe. The inclusion of operating lease liabilities results in higher ratio values compared to the standard debt to equity ratio.
- Debt to Capital
- The debt to capital ratio decreased from 0.83 in March 2022 to 0.70 in December 2025, indicating a reduced reliance on debt financing relative to the company’s capital structure. The decline is relatively steady, with minor variations throughout the period.
- Debt to Capital (Including Operating Lease Liability)
- This ratio follows a similar pattern to the standard debt to capital ratio, beginning at 0.85 in March 2022 and decreasing to 0.74 in December 2025. As with the debt to equity ratios, incorporating operating lease liabilities results in higher values.
- Debt to Assets
- The debt to assets ratio demonstrates a consistent downward trend, decreasing from 0.49 in March 2022 to 0.42 in December 2025. This suggests a decreasing proportion of assets financed by debt. The decline is gradual and relatively consistent.
- Debt to Assets (Including Operating Lease Liability)
- This ratio also exhibits a declining trend, moving from 0.57 in March 2022 to 0.50 in December 2025. The inclusion of operating lease liabilities results in higher values than the standard debt to assets ratio, but the overall trend remains consistent.
- Financial Leverage
- Financial leverage, as measured by this ratio, decreased from 9.73 in March 2022 to 5.63 in December 2025. This indicates a reduction in the company’s use of debt to amplify returns. The most significant decrease occurred between March 2022 and December 2022, followed by a more gradual decline.
- Interest Coverage
- The interest coverage ratio consistently increased throughout the period, rising from 7.47 in March 2022 to 8.18 in December 2025. This indicates an improving ability to cover interest expenses with earnings before interest and taxes. The ratio remains comfortably above 7.0, suggesting a strong capacity to service its debt obligations.
In summary, the company’s solvency position has strengthened over the analyzed period, as evidenced by declining leverage ratios and improving interest coverage. The inclusion of operating lease liabilities consistently increases the reported debt ratios, but the underlying trends remain consistent across both sets of metrics.
Debt Ratios
Coverage Ratios
Debt to Equity
Sherwin-Williams Co., debt to equity calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The debt to equity ratio demonstrates a fluctuating pattern over the observed period, generally exhibiting a decreasing trend, though with some reversals. Initially, the ratio stood at 4.74 and 4.77 in the first two quarters, indicating a relatively high level of debt compared to equity. A noticeable decline followed, reaching 4.06 and subsequently 3.41 by the end of 2022.
- Overall Trend
- The period between March 2022 and December 2022 shows a consistent reduction in the debt to equity ratio, suggesting improved solvency as the company decreased its reliance on debt financing relative to equity. This trend indicates a strengthening financial position during this timeframe.
- 2023 Fluctuations
- In 2023, the ratio experienced some volatility. It increased slightly to 3.50 in the first quarter before decreasing significantly to 2.86, 2.63, and 2.65 over the subsequent three quarters. This suggests active debt management or changes in equity levels throughout the year. The ratio remained relatively stable in the latter half of 2023.
- Recent Performance (2024-2025)
- The ratio saw a slight increase to 3.06 in the first quarter of 2024, followed by a decrease to 2.76, 2.44, and 2.44 over the remaining quarters of 2024. This pattern continued into 2025, with the ratio fluctuating between 2.61 and 2.60 before ending at 2.36 in December 2025. The most recent values indicate the lowest levels of debt relative to equity observed throughout the entire period, suggesting continued improvement in the company’s solvency position.
The consistent downward trend, particularly evident in the latter half of the period, suggests effective financial management focused on reducing debt or increasing equity. However, the intermittent increases indicate that the ratio is subject to change based on financing decisions and overall financial performance.
Debt to Equity (including Operating Lease Liability)
Sherwin-Williams Co., debt to equity (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= ÷ =
The debt to equity ratio, inclusive of operating lease liabilities, demonstrates a notable decreasing trend over the observed period, although with some fluctuation. Initially high, the ratio has generally moved towards a more conservative level, suggesting a strengthening financial position regarding leverage.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio began at 5.59 and steadily declined to 4.03. This indicates a reduction in the proportion of debt financing relative to equity during this timeframe. The decrease suggests either a decrease in debt levels, an increase in shareholders’ equity, or a combination of both.
- Fluctuation and Further Decline (Mar 31, 2023 – Sep 30, 2024)
- Following the initial decline, the ratio experienced some volatility. It decreased to a low of 2.91 in September 2024, after reaching 4.11 in March 2023 and 3.40 in June 2023. This period shows a continued overall downward trend, but with quarterly variations. Shareholders’ equity increased significantly during this period, contributing to the lower ratio.
- Recent Period (Dec 31, 2024 – Dec 31, 2025)
- The ratio stabilized somewhat, fluctuating between 2.81 and 3.10. While not exhibiting the same rate of decline as earlier periods, the ratio remained within a relatively narrow range, indicating a consistent leverage profile. A slight increase to 3.07 was observed in September 2025, followed by a decrease to 2.81 by the end of the period.
Total debt, inclusive of operating lease liabilities, initially remained relatively stable before increasing in early 2023. However, it subsequently decreased through September 2024, before increasing again in late 2024 and 2025. Shareholders’ equity demonstrated a consistent upward trend throughout the majority of the period, with a particularly strong increase between March 2022 and December 2023. This growth in equity is a primary driver of the observed decline in the debt to equity ratio.
Overall, the trend suggests a deliberate or opportunistic shift towards a more balanced capital structure, reducing reliance on debt financing. The company appears to be effectively managing its debt levels in relation to its equity base.
Debt to Capital
Sherwin-Williams Co., debt to capital calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||
| Total capital | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The debt to capital ratio for the analyzed period demonstrates a generally decreasing trend, with some fluctuations. Initially, the ratio stood at 0.83 for the first two quarters analyzed, then exhibited a decline, reaching a low of 0.71 in the latter half of 2023. A slight increase was observed in the first half of 2024, before resuming a downward trajectory through the end of the analyzed period.
- Overall Trend
- The overall trend indicates a strengthening of the company’s capital structure relative to its debt obligations. The ratio decreased from 0.83 at the beginning of the period to 0.70 at the end, suggesting a reduced reliance on debt financing compared to equity and other capital sources.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the debt to capital ratio decreased from 0.83 to 0.77. This suggests a period of capital growth outpacing debt accumulation, or a deliberate effort to reduce debt levels.
- Mid-Period (Mar 31, 2023 – Dec 31, 2023)
- The period from March 31, 2023, to December 31, 2023, saw a more pronounced decrease, with the ratio falling from 0.78 to 0.73. This continued trend of capital growth relative to debt suggests positive financial performance or strategic financial management.
- Recent Fluctuations (Mar 31, 2024 – Dec 31, 2025)
- The ratio experienced a slight increase from 0.73 to 0.75 between March 31, 2024, and March 31, 2025, before continuing its decline to 0.70 by December 31, 2025. This recent fluctuation could be attributed to short-term financing decisions or changes in capital structure. The final decrease indicates a renewed focus on reducing the debt to capital ratio.
The consistent downward trend, despite minor fluctuations, suggests improving solvency and a potentially lower risk profile for the company. The observed changes in the debt to capital ratio warrant further investigation into the underlying factors driving these movements, such as changes in debt levels, equity issuance, or retained earnings.
Debt to Capital (including Operating Lease Liability)
Sherwin-Williams Co., debt to capital (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
The debt to capital ratio, including operating lease liabilities, demonstrates a generally decreasing trend over the observed period, with some fluctuations. Initially, the ratio remained relatively stable before exhibiting a more pronounced decline, followed by a slight increase in the most recent quarters.
- Initial Stability (Mar 31, 2022 – Sep 30, 2022)
- The debt to capital ratio began the period at 0.85 and fluctuated modestly, decreasing to 0.83 by September 30, 2022. This suggests a consistent, but not dramatic, relationship between debt and capital during this timeframe.
- Downward Trend (Dec 31, 2022 – Sep 30, 2023)
- A clear downward trend is observed from December 31, 2022, through September 30, 2023. The ratio decreased from 0.80 to 0.76, indicating a reduction in the proportion of debt financing relative to total capital. This could be attributed to increased equity, debt reduction, or a combination of both.
- Fluctuation and Recent Increase (Mar 31, 2024 – Dec 31, 2025)
- Following the decline, the ratio experienced some fluctuation. It rose to 0.78 by March 31, 2024, before decreasing to 0.74 by June 30, 2024. The ratio then increased to 0.75 by September 30, 2025, and concluded the period at 0.74 on December 31, 2025. While still lower than the initial values, this recent movement suggests a potential stabilization or slight increase in leverage.
- Overall Trend
- Despite the recent fluctuations, the overall trend indicates a decrease in the debt to capital ratio over the analyzed period. The ratio moved from 0.85 at the beginning of the period to 0.74 at the end, representing a reduction in financial leverage. This suggests the company has been managing its debt levels effectively, or has been successful in raising capital through equity financing.
The observed changes in the debt to capital ratio warrant further investigation into the underlying factors driving these trends, such as specific debt repayment schedules, equity issuances, and changes in operating lease obligations.
Debt to Assets
Sherwin-Williams Co., debt to assets calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The debt-to-assets ratio for the analyzed period demonstrates a generally decreasing trend, with some fluctuations. Initially, the ratio stood at 0.49 and generally declined through the first three quarters of 2023, reaching a low of 0.43. Subsequently, the ratio experienced some volatility, increasing to 0.46 by March 31, 2024, before decreasing again to 0.42 by December 31, 2024. The most recent periods show a slight increase to 0.44 in March 2025, followed by a decrease to 0.42 in June 2025, and a further increase to 0.44 in September 2025, concluding at 0.42 in December 2025.
- Overall Trend
- The overall trend indicates a reduction in the proportion of assets financed by debt over the observed timeframe. While not consistently downward, the ratio generally decreased from 0.49 in March 2022 to 0.42 in December 2025, suggesting a strengthening of the company’s financial position regarding leverage.
- Short-Term Fluctuations
- There are noticeable short-term fluctuations within the trend. For example, the ratio increased from 0.43 in September 2023 to 0.46 in March 2024. These fluctuations could be attributed to changes in debt levels, asset values, or a combination of both. The increase in debt observed in the first quarter of 2024 appears to be a contributing factor to the ratio increase during that period.
- Recent Performance
- The most recent four quarters (March 2024 – December 2025) show a relatively stable range between 0.42 and 0.46. This suggests a period of more consistent capital structure management. The slight increase in the ratio in September 2025, followed by a return to 0.42 in December 2025, indicates potential short-term adjustments in financing strategies.
- Debt and Asset Movement
- Total debt initially remained relatively stable before increasing in the first quarter of 2023. It then decreased for three consecutive quarters before increasing again in the first quarter of 2024. Total assets generally increased throughout the period, contributing to the overall downward trend in the debt-to-assets ratio. The rate of asset growth appeared to outpace debt growth for much of the period, further supporting the decreasing ratio.
Debt to Assets (including Operating Lease Liability)
Sherwin-Williams Co., debt to assets (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
The debt to assets ratio, including operating lease liabilities, for the analyzed period demonstrates a generally decreasing trend, with some fluctuations. Initially, the ratio remained relatively stable before exhibiting a more pronounced decline and subsequent stabilization, followed by a slight increase towards the end of the observed timeframe.
- Initial Stability (Mar 31, 2022 – Dec 31, 2022)
- The ratio began at 0.57 and fluctuated modestly, decreasing to 0.55 over the first nine months before returning to 0.57 by the end of 2022. This suggests a consistent, but not significantly changing, level of debt relative to assets during this period.
- Downward Trend (Mar 31, 2023 – Sep 30, 2023)
- A clear downward trend emerged starting in March 2023, with the ratio declining from 0.56 to 0.51 by September 2023. This indicates a reduction in debt relative to the asset base, potentially through debt repayment or asset growth.
- Stabilization and Slight Increase (Dec 31, 2023 – Jun 30, 2025)
- Following the decline, the ratio stabilized around the 0.50-0.52 range for several quarters, before increasing to 0.52 in September 2025. The final reported value for June 2025 is 0.50. This suggests a period of relatively consistent financial leverage, followed by a minor increase in debt relative to assets.
- Overall Range
- Throughout the analyzed period, the debt to assets ratio ranged from a low of 0.50 to a high of 0.57. The ratio concluded the period at 0.50, representing a decrease from the initial value. This indicates a generally improved solvency position over the observed timeframe, although the recent increase warrants monitoring.
The observed fluctuations suggest potential strategic decisions regarding capital structure or changes in asset composition. Further investigation into the underlying drivers of these changes would be necessary to provide a more comprehensive assessment.
Financial Leverage
Sherwin-Williams Co., financial leverage calculation (quarterly data)
| 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 | |||||||||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| Linde plc | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
Financial leverage, as indicated by the ratio of total assets to shareholders’ equity, demonstrates a clear declining trend over the observed period. Initially, the ratio stood at 9.73 and decreased consistently through December 31, 2022, reaching a low of 7.28. This decline suggests a decreasing reliance on debt financing relative to equity.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- The period from March 31, 2022, to December 31, 2022, exhibits a substantial reduction in financial leverage. The ratio decreased from 9.73 to 7.28, representing a decrease of approximately 25.4%. This suggests a deliberate effort to reduce debt or a significant increase in equity during this timeframe.
- Stabilization and Subsequent Increase (Mar 31, 2023 – Dec 31, 2024)
- Following the initial decline, the ratio stabilized between 6.09 and 7.30 for the period spanning March 31, 2023, to December 31, 2024. A slight increase is observed from 6.09 to 6.69 during this period, indicating a modest increase in financial leverage. However, the ratio remained below the levels observed in the earlier part of the analyzed period.
- Recent Trend (Mar 31, 2025 – Dec 31, 2025)
- The most recent period shows a further decrease in financial leverage, with the ratio falling from 5.97 to 5.63. This suggests a renewed focus on reducing debt or increasing equity in the latter part of 2025. The ratio reached its lowest point in the observed period at 5.63.
Overall, the trend indicates a shift towards a more conservative capital structure. While there were periods of stabilization and slight increases, the overarching pattern demonstrates a consistent reduction in the company’s financial leverage over the analyzed timeframe. This could be due to increased profitability leading to retained earnings, equity issuance, or active debt reduction strategies.
Interest Coverage
Sherwin-Williams Co., interest coverage calculation (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= ( + + + )
÷ ( + + + )
=
The interest coverage ratio demonstrates a generally positive trend over the observed period, indicating an increasing ability to meet interest obligations from earnings. Fluctuations are present, but the overall trajectory suggests strengthening solvency from an interest perspective.
- Overall Trend
- The interest coverage ratio generally increased from 7.47 in March 2022 to 8.18 in December 2023. A slight decrease to 7.70 was observed in December 2025, but the ratio remained above the levels seen in the earlier part of the period. This suggests a strengthening capacity to cover interest expenses with operating income.
- Quarterly Fluctuations
- While the overall trend is positive, the ratio exhibits quarterly variability. Declines were noted between June and September 2022, and again between December 2022 and March 2023. These declines coincide with seasonal fluctuations in EBIT. The most significant increase occurred between March and June 2023, reaching a peak of 9.03 in June 2024. A subsequent decline was observed in the following quarters, but the ratio remained relatively stable.
- EBIT and Interest Expense Relationship
- The interest coverage ratio’s movement closely follows the fluctuations in EBIT. Periods of higher EBIT generally correspond to higher interest coverage ratios, and vice versa. Interest expense remained relatively stable throughout the period, increasing from US$88.4 million in March 2022 to US$131.6 million in December 2025. The consistent growth in EBIT outpaced the increase in interest expense, driving the overall improvement in the ratio.
- Recent Performance
- The ratio peaked at 9.04 in June 2024 before decreasing to 8.18 by December 2025. While this represents a decrease from the peak, the ratio remains comfortably above the levels observed in the earlier periods, indicating continued strong solvency. The increase in interest expense in the final quarter contributed to this decline.
In conclusion, the interest coverage ratio indicates a healthy and improving ability to service debt obligations. While quarterly fluctuations exist, the overall trend is positive, suggesting a robust financial position with respect to interest-bearing liabilities.