Sherwin-Williams Co (SHW)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,954,000 | 23,004,500 | 23,166,100 | 23,129,900 | 22,594,000 | 22,245,800 | 22,052,800 | 21,730,400 | 20,667,000 | 20,736,600 | 20,519,600 | 20,435,000 | 20,401,600 | 20,809,700 | 20,494,500 | 20,570,300 | 20,496,200 | 20,864,300 | 21,186,100 | 20,961,600 |
| Total stockholders’ equity | US$ in thousands | 3,715,800 | 3,780,000 | 3,631,100 | 3,166,800 | 3,102,100 | 2,597,800 | 2,224,600 | 2,234,300 | 2,437,200 | 2,690,300 | 2,840,400 | 3,078,700 | 3,610,800 | 4,207,300 | 3,869,900 | 3,289,100 | 4,123,300 | 4,022,900 | 3,747,500 | 3,460,100 |
| Financial leverage ratio | 6.18 | 6.09 | 6.38 | 7.30 | 7.28 | 8.56 | 9.91 | 9.73 | 8.48 | 7.71 | 7.22 | 6.64 | 5.65 | 4.95 | 5.30 | 6.25 | 4.97 | 5.19 | 5.65 | 6.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,954,000K ÷ $3,715,800K
= 6.18
The financial leverage ratio of Sherwin-Williams Co. has shown fluctuations over the past eight quarters. The ratio, which measures the extent of a company's debt financing relative to its equity, ranged from a low of 6.09 in Q3 2023 to a high of 9.91 in Q2 2022.
The company experienced a significant increase in financial leverage from Q1 2022 to Q2 2022, where the ratio spiked from 7.30 to 9.91, indicating a higher proportion of debt in its capital structure during that period. Subsequently, there was a gradual decline in the ratio from Q2 2022 to Q3 2023, reaching a low of 6.09, suggesting a reduction in debt relative to equity.
The trend in the financial leverage ratio indicates that Sherwin-Williams Co. has been managing its debt levels over the past quarters. It is essential for investors and stakeholders to closely monitor the company's leverage ratio to assess its financial risk and stability, as high levels of leverage can potentially increase the company's vulnerability to economic downturns and interest rate fluctuations.
Peer comparison
Dec 31, 2023