Sherwin-Williams Co (SHW)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 210,400 276,800 198,800 165,700 226,600
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 6,808,700 6,626,900 5,960,700 5,719,500 4,594,400
Cash ratio 0.03 0.04 0.03 0.03 0.05

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($210,400K + $—K) ÷ $6,808,700K
= 0.03

The cash ratio of Sherwin-Williams Co has been relatively low and stable over the past five years, ranging from 0.03 to 0.05. This indicates that the company holds a modest amount of cash and cash equivalents in relation to its current liabilities. A lower cash ratio may suggest that Sherwin-Williams Co is utilizing its cash reserves efficiently to invest in growth opportunities or reduce debt, rather than keeping excess cash on hand. However, it's important to note that a very low cash ratio may also indicate a potential liquidity risk if the company faces unexpected financial obligations or downturns in the business environment.

Overall, Sherwin-Williams Co's cash ratio suggests a prudent approach to managing its cash resources, balancing the need for liquidity with the pursuit of strategic investments and operational objectives. Additional analysis of the company's overall liquidity position and cash management practices would provide a more comprehensive understanding of its financial health and risk profile.


Peer comparison

Dec 31, 2024

Company name
Symbol
Cash ratio
Sherwin-Williams Co
SHW
0.03
Fastenal Company
FAST
0.37
Tractor Supply Company
TSCO
0.11

See also:

Sherwin-Williams Co Cash Ratio