Sherwin-Williams Co (SHW)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 210,400 | 238,200 | 200,000 | 179,900 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,808,700 | 7,218,100 | 7,466,600 | 7,483,500 | 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 |
| Quick ratio | 0.03 | 0.03 | 0.03 | 0.02 | 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 |
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, also known as the acid-test ratio, is a financial metric used to assess a company's short-term liquidity position. It is calculated by dividing the sum of cash and cash equivalents, marketable securities, and accounts receivable by current liabilities.
Analyzing the quick ratio of Sherwin-Williams Co from March 2020 to December 2024, we observe fluctuations over the period. The quick ratio ranged from as low as 0.02 to as high as 0.14 during this timeframe.
The quick ratio of 0.05 in March 2020 indicates that the company had $0.05 of liquid assets available to cover each dollar of its current liabilities. The ratio decreased to 0.04 in June 2020 and continued to fluctuate between 0.03 and 0.06 until September 2021.
However, a notable increase was seen in September 2021, with the quick ratio reaching 0.08, suggesting improved liquidity at that point. Nevertheless, the ratio dropped back to 0.02 by March 2023 before gradually stabilizing around 0.03 by the end of December 2024.
Overall, the quick ratio of Sherwin-Williams Co fluctuated throughout the period, indicating varying levels of short-term liquidity. It is important for the company to maintain a healthy quick ratio to ensure it can meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024