Sherwin-Williams Co (SHW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.83 | 6.18 | 7.28 | 8.48 | 5.65 |
Based on the provided solvency ratios for Sherwin-Williams Co, we can observe the following trends:
1. Debt-to-assets ratio: The company maintains a consistent debt-to-assets ratio of 0.00 across the years from 2020 to 2024. This indicates that Sherwin-Williams Co has not relied heavily on debt to finance its assets, suggesting a strong ability to cover its liabilities with its assets.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 throughout the period. This demonstrates that the company's capital structure is not significantly leveraged with debt, which can be viewed positively in terms of financial risk.
3. Debt-to-equity ratio: The debt-to-equity ratio also stays constant at 0.00 from 2020 to 2024. This signifies that Sherwin-Williams Co has no debt relative to its equity, indicating a conservative approach to financing and a strong financial position.
4. Financial leverage ratio: The financial leverage ratio shows a decreasing trend from 2021 to 2024, with values ranging from 5.65 to 5.83. A decreasing trend in the financial leverage ratio implies that the company is reducing its reliance on debt in its capital structure over time, enhancing its financial stability and flexibility.
Overall, based on the solvency ratios provided, Sherwin-Williams Co appears to have a solid financial position with minimal debt obligations and a conservative approach to capital structure management, which may contribute to its long-term financial sustainability and resilience.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 9.05 | 8.84 | 7.62 | 7.75 | 8.52 |
The interest coverage ratio of Sherwin-Williams Co has displayed a consistent and relatively healthy trend over the years. Starting at 8.52 in December 2020, the ratio slightly decreased to 7.75 in December 2021 but remained relatively stable around 7.62 in December 2022. It then showed an improvement to 8.84 in December 2023 and further increased to 9.05 in December 2024.
Overall, the company's interest coverage ratio indicates that it is capable of comfortably meeting its interest payment obligations. The upward trend in recent years suggests that Sherwin-Williams Co's earnings are sufficient to cover its interest expenses with a growing margin of safety. This positive trend may reflect improved profitability, operational efficiency, or effective management of debt levels.