Sherwin-Williams Co (SHW)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 23,632,600 | 22,954,400 | 22,594,000 | 20,666,700 | 20,401,600 |
| Total stockholders’ equity | US$ in thousands | 4,051,200 | 3,715,800 | 3,102,100 | 2,437,200 | 3,610,800 |
| Financial leverage ratio | 5.83 | 6.18 | 7.28 | 8.48 | 5.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,632,600K ÷ $4,051,200K
= 5.83
The financial leverage ratio of Sherwin-Williams Co has fluctuated over the past five years, indicating changes in the company's debt position relative to its equity. In December 2020, the ratio stood at 5.65, implying that for every dollar of equity, the company had $5.65 of debt. This ratio increased significantly to 8.48 by December 2021, suggesting a higher level of financial risk due to increased debt relative to equity.
However, by December 2022, the financial leverage ratio decreased to 7.28, indicating a reduction in the company's reliance on debt funding compared to the previous year. This trend continued in December 2023, with the ratio further declining to 6.18, suggesting a more conservative capital structure.
By December 2024, the financial leverage ratio decreased slightly to 5.83, indicating that Sherwin-Williams Co maintained a balanced mix of debt and equity. Overall, the fluctuation in the financial leverage ratio over the years reflects changes in the company's capital structure and its ability to manage debt levels effectively.
Peer comparison
Dec 31, 2024