Sherwin-Williams Co (SHW)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.00 | 5.77 | 6.33 | 6.69 | 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 |
Sherwin-Williams Co has consistently maintained a very low level of debt relative to its assets, with a debt-to-assets ratio of 0.00 across all reported periods. This indicates a strong solvency position and a low risk of financial distress due to debt obligations.
Similarly, the company has a debt-to-capital ratio of 0.00, indicating that it relies very little on debt financing in relation to its total capital. The debt-to-equity ratio also remains at 0.00 consistently, suggesting that the company funds its operations primarily through equity rather than debt.
The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, has shown some fluctuations over time but generally remains at moderate levels. The ratio peaked at 9.91 in June 2022 and has since decreased to 1.00 by December 2024. Overall, Sherwin-Williams Co's financial leverage has been manageable and has trended downwards in recent periods, indicating a reduction in reliance on debt financing.
In conclusion, Sherwin-Williams Co demonstrates a strong solvency position, with low debt levels relative to its assets and capital. The company's conservative approach to debt management has contributed to its stability and financial health.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.17 | 9.14 | 9.13 | 8.85 | 8.71 | 6.70 | 6.39 | 5.98 | 5.85 | 7.53 | 7.11 | 7.51 | 8.07 | 8.64 | 9.46 | 9.13 | 8.44 | 6.18 | 5.62 | 5.40 |
Sherwin-Williams Co's interest coverage ratio has shown a generally positive trend over the past few years, indicating the company's ability to meet its interest obligations with its operating income. The interest coverage ratio increased steadily from 5.40 in March 2020 to 9.17 in December 2024.
A higher interest coverage ratio implies that the company is more capable of servicing its debt, as it has more operating income available to cover interest expenses. In the case of Sherwin-Williams Co, the improving trend in the interest coverage ratio suggests that the company's financial health in terms of managing its interest obligations has strengthened over the period under review.
However, it is worth noting that there was a slight dip in the interest coverage ratio in the most recent period from March 2024 to December 2024. It would be important to monitor this trend in future periods to assess whether it indicates a potential challenge in meeting interest payments or if it is just a temporary fluctuation.