Sherwin-Williams Co (SHW)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,400,800 | 5,512,900 | 5,907,700 | 5,053,700 | 4,591,400 |
| Total current liabilities | US$ in thousands | 6,808,700 | 6,626,900 | 5,960,700 | 5,719,500 | 4,594,400 |
| Current ratio | 0.79 | 0.83 | 0.99 | 0.88 | 1.00 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,400,800K ÷ $6,808,700K
= 0.79
The current ratio of Sherwin-Williams Co has shown fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 1.00, indicating that the company had $1 in current assets for every $1 in current liabilities. However, by December 31, 2021, the current ratio decreased to 0.88, suggesting a slight decrease in the company's ability to cover its short-term obligations with its current assets.
Over the subsequent years, the current ratio fluctuated further, with ratios of 0.99, 0.83, and 0.79 as of December 31, 2022, 2023, and 2024, respectively. These declining ratios indicate a potential strain on the company's liquidity position, as its current assets may be insufficient to cover its current liabilities effectively.
It is essential for Sherwin-Williams Co to closely monitor its current ratio and take appropriate measures to ensure the company maintains a healthy liquidity position to meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2024