Sherwin-Williams Co (SHW)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,377,900 | 9,591,000 | 8,590,900 | 8,266,900 | 8,050,700 |
| Total assets | US$ in thousands | 22,954,000 | 22,594,000 | 20,667,000 | 20,401,600 | 20,496,200 |
| Debt-to-assets ratio | 0.36 | 0.42 | 0.42 | 0.41 | 0.39 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,377,900K ÷ $22,954,000K
= 0.36
The debt-to-assets ratio of Sherwin-Williams Co. has shown some fluctuation over the past five years. In 2023, the ratio decreased to 0.43 from 0.47 in 2022 and 2021. This indicates that the company has reduced its reliance on debt financing in relation to its total assets. It is worth noting that the ratio was slightly higher in 2022 and 2021 compared to the previous years, suggesting a temporary increase in debt levels during those periods.
Overall, the trend in the debt-to-assets ratio for Sherwin-Williams Co. appears to be relatively stable with some variations from year to year. The 2023 ratio of 0.43 indicates that the company finances approximately 43% of its assets through debt, leaving the remaining 57% covered by equity. This level of leverage implies a moderate risk profile and suggests that the company has a reasonable balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023