Sherwin-Williams Co (SHW)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,512,900 | 5,907,700 | 5,053,700 | 4,591,400 | 4,631,700 |
| Total current liabilities | US$ in thousands | 6,626,900 | 5,960,700 | 5,719,500 | 4,594,400 | 4,521,900 |
| Current ratio | 0.83 | 0.99 | 0.88 | 1.00 | 1.02 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,512,900K ÷ $6,626,900K
= 0.83
The current ratio of Sherwin-Williams Co. has fluctuated over the past five years, indicating potential changes in its liquidity position. As of December 31, 2023, the current ratio stands at 0.83, which is lower compared to the previous year's ratio of 0.99. This decline suggests that the company may have fewer current assets available to cover its current liabilities in the most recent period.
The downward trend in the current ratio from 2020 to 2023 may raise concerns about the company's ability to meet its short-term obligations using its current assets. A current ratio below 1.0 typically implies that the company may struggle to pay off its short-term debts with its current assets alone.
Further analysis is needed to understand the reasons behind the decreasing current ratio and to assess the company's overall financial health and liquidity position. It is essential for stakeholders to monitor changes in the current ratio over time to ensure the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023