Sherwin-Williams Co (SHW)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 210,400 | 276,800 | 198,800 | 165,700 | 226,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,808,700 | 6,626,900 | 5,960,700 | 5,719,500 | 4,594,400 |
| Quick ratio | 0.03 | 0.04 | 0.03 | 0.03 | 0.05 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($210,400K
+ $—K
+ $—K)
÷ $6,808,700K
= 0.03
The quick ratio of Sherwin-Williams Co has experienced relatively low values over the past few years, indicating a potential liquidity concern. A quick ratio below 1 implies that the company may have difficulty meeting its short-term obligations with its most liquid assets.
For the financial years ending on December 31, 2020, 2021, 2022, 2023, and 2024, the quick ratio was 0.05, 0.03, 0.03, 0.04, and 0.03 respectively. These figures suggest that the company's ability to cover its current liabilities with its quick assets such as cash, marketable securities, and accounts receivable has been limited.
Investors and creditors may view a low quick ratio as a red flag due to the potential risk of insolvency or difficulties in meeting short-term financial obligations. Sherwin-Williams Co may need to closely monitor and manage its liquidity position to ensure it can meet its upcoming financial obligations promptly.
Peer comparison
Dec 31, 2024