Quick Ratio

The quick ratio measures a company’s ability to pay short-term obligations using its most liquid assets (excluding inventory), and SHW’s current ratio of 0.45x means it has only $0.45 in quick assets for every $1 of current liabilities.

This is well below the sector median of 0.73x, placing the company in the 26th percentile among its sector peers, indicating weaker liquidity than three-quarters of its competitors. There is no trend data available: the year-over-year change and quarter-over-quarter change are both listed as N/A, so no direction can be assessed. The combination of a low quick ratio (0.45x) and the absence of trend information highlights a short-term liquidity risk, as the company could face difficulty meeting immediate obligations without selling inventory or raising capital. This metric directly contradicts the overall CAUTIOUS verdict, but actually reinforces it — the poor liquidity position supports a cautious stance on the stock.

Frequently Asked Questions

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