Sherwin-Williams Co (SHW)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 161,800 | 189,600 | 145,600 | 94,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 45 | — | — |
| Receivables | US$ in thousands | 2,467,900 | 2,940,900 | 3,117,800 | 2,909,200 | 2,563,600 | 2,897,600 | 2,982,500 | 2,783,600 | 2,352,400 | 2,598,000 | 2,590,600 | 2,414,100 | 2,078,100 | 2,454,500 | 2,472,500 | 2,291,500 | 2,088,900 | 2,479,040 | 2,659,050 | 2,339,550 |
| Total current liabilities | US$ in thousands | 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 | 4,521,900 | 4,865,800 | 6,342,600 | 5,000,600 |
| Quick ratio | 0.41 | 0.52 | 0.52 | 0.49 | 0.46 | 0.50 | 0.46 | 0.46 | 0.44 | 0.45 | 0.45 | 0.48 | 0.50 | 0.71 | 0.60 | 0.48 | 0.50 | 0.55 | 0.44 | 0.49 |
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 some fluctuation over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.
Looking at the data provided, the quick ratio has generally been below 1, which may suggest that Sherwin-Williams Co. could potentially face challenges in meeting its short-term financial obligations using its liquid assets alone.
The ratio has ranged from a low of 0.48 in Q4 2023 to a high of 0.62 in Q2 2023. The highest quick ratio of 0.62 in Q2 2023 indicates that the company had slightly better liquidity to cover its short-term liabilities during that period. However, this improvement was not sustained as the ratio decreased to 0.48 in Q4 2023.
Overall, although the quick ratio of Sherwin-Williams Co. has shown some variability over the quarters, it is important for stakeholders to monitor this ratio closely to assess the company's ability to manage its short-term financial obligations effectively and ensure its financial health.
Peer comparison
Dec 31, 2023