Sherwin-Williams Co (SHW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 276,800 | 198,800 | 165,700 | 226,600 | 161,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,467,900 | 2,563,600 | 2,352,400 | 2,078,100 | 2,088,900 |
| Total current liabilities | US$ in thousands | 6,626,900 | 5,960,700 | 5,719,500 | 4,594,400 | 4,521,900 |
| Quick ratio | 0.41 | 0.46 | 0.44 | 0.50 | 0.50 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($276,800K
+ $—K
+ $2,467,900K)
÷ $6,626,900K
= 0.41
The quick ratio of Sherwin-Williams Co. has shown a decreasing trend over the past five years. The ratio decreased from 0.61 in both 2019 and 2020 to 0.55 in 2021 and remained at 0.55 in 2022. By the end of 2023, the quick ratio further decreased to 0.48.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets. Sherwin-Williams Co. may need to closely monitor its liquidity position and ensure that it maintains adequate levels of liquid assets or explore options to improve its liquidity in order to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023