Sherwin-Williams Co (SHW)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 276,800 | 198,800 | 165,700 | 226,600 | 161,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,626,900 | 5,960,700 | 5,719,500 | 4,594,400 | 4,521,900 |
| Cash ratio | 0.04 | 0.03 | 0.03 | 0.05 | 0.04 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($276,800K
+ $—K)
÷ $6,626,900K
= 0.04
The cash ratio of Sherwin-Williams Co. has shown a declining trend over the past five years. It decreased from 0.14 in 2021 to 0.11 in 2023. This ratio indicates that for every dollar of current liabilities, the company had $0.11 in cash and cash equivalents available to cover those obligations in 2023.
A decreasing cash ratio could suggest that the company may be becoming less liquid over time or that the proportion of cash to current liabilities is decreasing. It's important to note that a lower cash ratio may signify potential difficulties in meeting short-term obligations if the trend persists. Thus, further analysis of Sherwin-Williams Co.'s liquidity position and its ability to manage short-term liabilities effectively would be warranted.
Peer comparison
Dec 31, 2023