Sherwin-Williams Co (SHW)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 161,800 | 189,600 | 145,600 | 94,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 45 | — | — |
| Total current liabilities | US$ in thousands | 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 | 4,521,900 | 4,865,800 | 6,342,600 | 5,000,600 |
| Cash ratio | 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 | 0.04 | 0.04 | 0.02 | 0.02 |
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 relatively consistent levels over the past eight quarters, ranging between 0.11 and 0.15. The cash ratio measures the company's ability to cover its short-term liabilities using its readily available cash and cash equivalents.
A cash ratio of 0.11 in Q4 2023 indicates that for every dollar of current liabilities, Sherwin-Williams Co. has $0.11 in cash and cash equivalents on hand. This suggests that the company may have a relatively lower level of cash reserves compared to its current liabilities.
While the variations in the cash ratio over the quarters are not significant, it is important to note that a higher cash ratio typically indicates a stronger liquidity position and ability to meet short-term obligations. Sherwin-Williams Co. may want to monitor its cash position closely to ensure it maintains sufficient liquidity to cover its short-term financial obligations.
Peer comparison
Dec 31, 2023