Sherwin-Williams Co (SHW)
Cash ratio
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 210,400 | 238,200 | 200,000 | 179,900 | 276,800 | 503,400 | 209,400 | 151,400 | 198,800 | 130,500 | 312,600 | 401,100 | 165,700 | 313,300 | 219,600 | 314,700 | 226,600 | 619,900 | 188,100 | 238,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,808,700 | 7,218,100 | 7,466,600 | 7,483,500 | 6,626,900 | 6,623,200 | 6,339,100 | 6,306,000 | 5,960,700 | 6,096,000 | 7,198,200 | 6,953,100 | 5,719,500 | 6,478,500 | 6,190,400 | 5,651,600 | 4,594,400 | 4,358,300 | 4,459,600 | 5,220,200 |
| Cash ratio | 0.03 | 0.03 | 0.03 | 0.02 | 0.04 | 0.08 | 0.03 | 0.02 | 0.03 | 0.02 | 0.04 | 0.06 | 0.03 | 0.05 | 0.04 | 0.06 | 0.05 | 0.14 | 0.04 | 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 shown fluctuating trends over the analyzed period. It indicates the company's ability, relative to its current liabilities, to cover those obligations using its cash and cash equivalents.
The cash ratio ranged from a low of 0.02 to a high of 0.14, showcasing some variability. A higher cash ratio is generally preferred as it suggests a company can easily settle its short-term liabilities. However, having too high a cash ratio can indicate an inefficient use of resources, as cash is not being deployed for more productive purposes.
In the later periods analyzed, the cash ratio tended to stabilize around 0.03 to 0.05, indicating Sherwin-Williams Co maintained a moderate level of liquidity relative to its short-term obligations. It is important for the company to manage its cash effectively, ensuring it has sufficient liquidity to meet its financial obligations while also deploying excess cash to generate returns for its shareholders.
Overall, the cash ratio provides insight into Sherwin-Williams Co's liquidity position and its ability to weather potential financial challenges in the short term. It is essential for investors and stakeholders to monitor this ratio alongside other financial metrics to assess the company's overall financial health.
Peer comparison
Dec 31, 2024