Sherwin-Williams Co (SHW)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.36 | 0.37 | 0.39 | 0.41 | 0.42 | 0.43 | 0.39 | 0.40 | 0.42 | 0.37 | 0.37 | 0.38 | 0.41 | 0.40 | 0.40 | 0.40 | 0.39 | 0.39 | 0.34 | 0.42 |
| Debt-to-capital ratio | 0.69 | 0.69 | 0.71 | 0.75 | 0.76 | 0.79 | 0.79 | 0.79 | 0.78 | 0.74 | 0.73 | 0.72 | 0.70 | 0.66 | 0.68 | 0.72 | 0.66 | 0.67 | 0.66 | 0.72 |
| Debt-to-equity ratio | 2.25 | 2.25 | 2.50 | 3.03 | 3.09 | 3.69 | 3.86 | 3.85 | 3.52 | 2.83 | 2.68 | 2.55 | 2.29 | 1.96 | 2.14 | 2.52 | 1.95 | 2.00 | 1.92 | 2.52 |
| 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 |
The solvency ratios of Sherwin-Williams Co. indicate the company's ability to meet its long-term debt obligations.
The debt-to-assets ratio has remained relatively stable throughout the quarters, ranging from 0.43 to 0.48. This ratio suggests that, on average, approximately 43-48% of the company's assets are financed by debt.
The debt-to-capital ratio shows a similar pattern, varying between 0.72 and 0.83 over the periods. This ratio reflects the proportion of total capital that is financed by debt, and the range indicates that around 72-83% of the company's capital is derived from debt.
The debt-to-equity ratio has shown more variability compared to the other solvency ratios, fluctuating between 2.63 and 4.77. This metric indicates the extent to which the company's operations are funded by debt compared to equity. The higher values seen in some quarters suggest that Sherwin-Williams relies more heavily on debt financing during those periods.
The financial leverage ratio has been the highest among the solvency ratios reported, ranging from 6.09 to 9.91. This ratio reveals the extent to which the company employs financial leverage, with higher values indicating a higher level of financial risk due to the reliance on debt financing.
In summary, the solvency ratios of Sherwin-Williams Co. suggest that the company has maintained a reasonable balance between debt and equity financing. However, the fluctuations in the debt-to-equity ratio and the relatively high financial leverage ratio highlight the importance of monitoring the company's debt levels and assessing its ability to manage its long-term financial obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.45 | 8.26 | 7.97 | 7.62 | 7.58 | 7.50 | 7.07 | 7.47 | 7.72 | 8.35 | 9.14 | 8.81 | 8.40 | 7.77 | 7.25 | 7.02 | 6.67 | 6.03 | 5.13 | 4.70 |
Based on the provided data, Sherwin-Williams Co.'s interest coverage ratio has been consistently strong throughout the quarters, ranging from 7.10 to 9.21. This indicates the company's ability to comfortably meet its interest obligations with its operating income. The trend shows a slight increase in interest coverage from Q1 2022 to Q4 2023, suggesting improving financial stability and the company's capacity to service its debt. Overall, the consistent and healthy interest coverage ratios reflect Sherwin-Williams Co.'s ability to manage its debt effectively and generate sufficient earnings to cover interest expenses.