Aureus
BGood

Sherwin-Williams Company (The)(SHW)

B

Financial data as of Dec 31, 2024Improving · Materials

FCF Margin9.0%Free Cash Flow / Revenue
Cash Conversion117.6%Operating CF / Net Income
Free Cash Flow$2.1B
Revenue$23.1B
Net Cash-$11.7BNet debt position
Debt / FCF5.7xElevated debt burden
Current Ratio0.79Tight short-term liquidity
YoY FCF Growth+32.4%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
-0.5Elevated debt-to-FCF ratio (5.7x)
→
-1Current ratio below 1.0 (0.79)
→
+1Strong YoY FCF growth (32.4% YoY)
→
FinalB

Analysis Summary

Strengths

  • Excellent cash conversion (118%)
  • Strong YoY FCF growth (+32.4%)
  • FCF trend is improving

Concerns

  • Low FCF margin (9.0%)
  • Heavy debt position ($11.7B)
  • High debt-to-FCF ratio (5.7x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin9.0%
Net Margin11.6%
Operating CF Margin13.7%
CapEx Ratio4.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$11.7BNet debt position
Debt / FCF5.7xElevated debt burden
Current Ratio0.79Tight liquidity
Debt / Equity2.94High leverage

Quarterly FCF Trend

+32.4% YoYImproving (+32.4%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameSherwin-Williams Company (The)
SectorMaterials
Free Cash Flow$2.1B
Revenue$23.1B
Net Income$2.7B
Operating Cash Flow$3.2B
Capital Expenditure$1.1B
FCF Margin9.0%
Cash Conversion Rate117.6%
Net Margin11.6%
Total Debt$11.9B
Total Cash$210.4M
Net Cash-$11.7B
Current Ratio0.79
Debt / Equity2.94
Debt / FCF5.7x
YoY FCF Growth+32.4%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeB
Data SourceYahoo Finance