Leverage has increased, with total debt rising to $14.2B and debt-to-equity at 3.69, while retained earnings fell to $2.0B, indicating that buybacks are consuming more capital than retained profits.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Total Current Assets | 7B | 6.01B | 5.4B | 5.51B | 5.91B | 5.05B | 4.59B | 4.63B | 4.34B | 4.41B | 3.63B | 2.66B | 2.57B | 3.16B | 3.15B | 2.26B | 2.21B | 1.77B | 1.91B | 2.07B | 2.45B | 1.89B | 1.78B | 1.72B | 1.51B | 1.51B | 1.55B | 1.58B | 1.55B | 1.53B | 1.42B |
| Cash & Short-Term Investments | 293.5M | 207.2M | 210.4M | 276.8M | 198.8M | 165.7M | 226.6M | 161.8M | 155.5M | 204.2M | 889.79M | 205.74M | 40.73M | 744.89M | 862.59M | 32.7M | 58.59M | 69.33M | 26.21M | 27.32M | 490.37M | 36.04M | 45.93M | 302.81M | 164.01M | 118.81M | 2.9M | 18.62M | 19.1M | 3.5M | 1.9M |
| Cash Only | 293.5M | 207.2M | 210.4M | 276.8M | 198.8M | 165.7M | 226.6M | 161.8M | 155.5M | 204.2M | 889.79M | 205.74M | 40.73M | 744.89M | 862.59M | 32.7M | 58.59M | 69.33M | 26.21M | 27.32M | 469.17M | 36.04M | 45.93M | 302.81M | 164.01M | 118.81M | 2.9M | 18.62M | 19.1M | 3.5M | 1.9M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 21.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 3.57B | 2.79B | 2.39B | 2.47B | 2.56B | 2.35B | 2.08B | 2.09B | 2.02B | 2.1B | 1.23B | 1.11B | 1.13B | 1.1B | 1.03B | 989.87M | 916.66M | 696.05M | 769.99M | 870.67M | 864.97M | 809.28M | 724.38M | 544.07M | 493.94M | 523.28M | 594.16M | 606.05M | 604.5M | 546.3M | 452.4M |
| Days Sales Outstanding | 47.39 | 43.22 | 37.75 | 39.08 | 42.25 | 43.05 | 41.31 | 42.59 | 42.02 | 51.27 | 37.9 | 35.87 | 37.08 | 39.34 | 39.53 | 41.22 | 43.03 | 35.81 | 35.22 | 39.7 | 40.43 | 41.07 | 43.32 | 36.72 | 34.77 | 37.7 | 41.61 | 44.21 | 44.72 | 40.85 | 39.95 |
| Inventory | 2.53B | 2.32B | 2.29B | 2.33B | 2.63B | 1.93B | 1.8B | 1.89B | 1.82B | 1.74B | 1.07B | 1.02B | 1.03B | 970.82M | 920.32M | 926.81M | 917.7M | 738.49M | 864.2M | 887.47M | 825.18M | 808.54M | 772.85M | 638.24M | 624.65M | 632.76M | 703.73M | 703.39M | 682.5M | 721.7M | 642.7M |
| Days Inventory Outstanding | 70.44 | 70.29 | 70.16 | 69.17 | 74.76 | 61.69 | 68.03 | 69.92 | 65.5 | 76.95 | 65.71 | 64.32 | 63.24 | 63.63 | 63.04 | 67.37 | 77.98 | 70.36 | 70.39 | 73.51 | 68.53 | 71.8 | 82.67 | 78.9 | 80.11 | 81.14 | 93.61 | 98.76 | 93.77 | 99.58 | 101.92 |
| Other Current Assets | 604.8M | 690.8M | 513.5M | 438.4M | 518.8M | 608.4M | 482.6M | 491.4M | 354.9M | 355.7M | 438.19M | 318.63M | 360.74M | 345.26M | 333.82M | 312.21M | 320.77M | 266.15M | 248.81M | 284.12M | 269.76M | 240.52M | 238.76M | 230.02M | 223.4M | 232.09M | 250.75M | 250.04M | 241.2M | 260.8M | 319.2M |
| Total Non-Current Assets | 19.95B | 19.89B | 18.23B | 17.44B | 16.69B | 15.61B | 15.81B | 15.86B | 14.79B | 15.49B | 3.13B | 3.12B | 3.13B | 3.22B | 3.09B | 2.97B | 2.96B | 2.55B | 2.51B | 2.79B | 2.54B | 2.47B | 2.49B | 1.97B | 1.93B | 2.12B | 2.2B | 2.45B | 2.52B | 2.5B | 1.58B |
| Property, Plant & Equipment | 6.28B | 6.13B | 5.49B | 4.72B | 4.07B | 3.69B | 3.6B | 3.52B | 1.78B | 1.88B | 1.1B | 1.04B | 1.02B | 1.02B | 965.9M | 956.53M | 952.12M | 818.68M | 860.13M | 899.37M | 828.78M | 745.15M | 720.36M | 650.25M | 664.6M | 672.69M | 722.38M | 711.68M | 718.9M | 692.3M | 549.4M |
| Fixed Asset Turnover | 3.98x | 3.84x | 4.21x | 4.88x | 5.44x | 5.41x | 5.11x | 5.08x | 9.87x | 7.98x | 10.82x | 10.88x | 10.90x | 9.97x | 9.87x | 9.16x | 8.17x | 8.67x | 9.28x | 8.90x | 9.42x | 9.65x | 8.47x | 8.32x | 7.80x | 7.53x | 7.21x | 7.03x | 6.86x | 7.05x | 7.52x |
| Goodwill | 8.02B | 8.04B | 7.58B | 7.63B | 7.58B | 7.13B | 7.05B | 7B | 6.96B | 6.81B | 1.13B | 1.14B | 1.16B | 1.18B | 1.16B | 1.11B | 1.1B | 1.01B | 1.01B | 996.61M | 916.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 3.8B | 3.97B | 3.53B | 3.88B | 4B | 4B | 4.47B | 4.73B | 5.2B | 6B | 255.01M | 255.37M | 289.13M | 313.3M | 347.55M | 305.87M | 320.5M | 279.41M | 299.96M | 351.14M | 285.92M | 1.18B | 1.21B | 750.73M | 738.25M | 919.89M | 964.63M | 1.31B | 1.41B | 1.47B | 774.7M |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 1.85B | 1.76B | 1.63B | 1.21B | 1.03B | 789M | 694.3M | 604.4M | 854.7M | 798.7M | 647.43M | 681.19M | 665.26M | 710.42M | 616.04M | 597.25M | 580.43M | 440.91M | 339.75M | 538.63M | 513.64M | 551.35M | 563.52M | 566.48M | 523.47M | 528.41M | 512.12M | 428.56M | 384.5M | 339.9M | 254.3M |
| Total Assets | 26.95B | 25.9B | 23.63B | 22.95B | 22.59B | 20.67B | 20.4B | 20.5B | 19.13B | 19.9B | 6.75B | 5.78B | 5.7B | 6.38B | 6.23B | 5.23B | 5.17B | 4.32B | 4.42B | 4.86B | 5B | 4.37B | 4.27B | 3.68B | 3.43B | 3.63B | 3.75B | 4.03B | 4.07B | 4.04B | 2.99B |
| Asset Turnover | 0.93x | 0.91x | 0.98x | 1.00x | 0.98x | 0.97x | 0.90x | 0.87x | 0.92x | 0.75x | 1.76x | 1.96x | 1.95x | 1.60x | 1.53x | 1.68x | 1.50x | 1.64x | 1.81x | 1.65x | 1.56x | 1.65x | 1.43x | 1.47x | 1.51x | 1.40x | 1.39x | 1.24x | 1.21x | 1.21x | 1.38x |
| Asset Growth % | 32.27% | 9.6% | 2.95% | 1.6% | 9.33% | 1.3% | -0.46% | 7.12% | -3.85% | 194.7% | 16.85% | 1.4% | -10.7% | 2.37% | 19.23% | 1.16% | 19.55% | -2.08% | -9.05% | -2.8% | 14.33% | 2.22% | 16.06% | 7.29% | -5.39% | -3.27% | -7% | -0.8% | 0.74% | 34.77% | 39.86% |
| Total Current Liabilities | 9.63B | 6.92B | 6.81B | 6.63B | 5.96B | 5.72B | 4.59B | 4.52B | 4.3B | 3.99B | 2.83B | 2.14B | 2.68B | 2.53B | 1.88B | 2.16B | 2.06B | 1.39B | 1.94B | 2.14B | 2.07B | 1.55B | 1.52B | 1.15B | 1.08B | 1.14B | 1.12B | 1.14B | 1.11B | 1.12B | 1.05B |
| Accounts Payable | 2.83B | 2.35B | 2.25B | 2.31B | 2.44B | 2.4B | 2.12B | 1.88B | 1.8B | 1.79B | 1.03B | 1.16B | 1.04B | 998.48M | 923M | 965.15M | 909.65M | 674.77M | 738.09M | 740.8M | 779.37M | 719.98M | 650.98M | 587.93M | 522.34M | 454.41M | 448.8M | 458.92M | 408.1M | 424.2M | 385.9M |
| Days Payables Outstanding | 75.05 | 71.38 | 69.09 | 68.73 | 69.35 | 76.93 | 79.86 | 69.42 | 64.93 | 79.12 | 63.63 | 73.1 | 63.77 | 65.44 | 63.23 | 70.16 | 77.3 | 64.29 | 60.12 | 61.36 | 64.72 | 63.94 | 69.63 | 72.68 | 66.99 | 58.27 | 59.7 | 64.44 | 56.07 | 58.53 | 61.2 |
| Short-Term Debt | 3.74B | 1.55B | 1.71B | 1.47B | 978.7M | 1.02B | 25.2M | 634.5M | 635.6M | 634.9M | 741.21M | 42.62M | 682.7M | 599.5M | 72.72M | 354.14M | 396.47M | 34.94M | 530.01M | 671.99M | 582.63M | 134.17M | 250.03M | 10.6M | 15M | 111.85M | 126.23M | 122.27M | 118.2M | 160.8M | 170.2M |
| Deferred Revenue (Current) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 194.79M | 224.3M | 236.93M | 224.76M | 195.74M | 555.64M | 146.99M | 141.64M | 540.21M | 559.7M | 585.7M | 530.7M | 494.9M |
| Current Ratio | 0.73x | 0.87x | 0.79x | 0.83x | 0.99x | 0.88x | 1.00x | 1.02x | 1.01x | 1.11x | 1.28x | 1.24x | 0.96x | 1.25x | 1.68x | 1.05x | 1.07x | 1.27x | 0.99x | 0.97x | 1.18x | 1.22x | 1.17x | 1.49x | 1.39x | 1.32x | 1.39x | 1.38x | 1.39x | 1.37x | 1.35x |
| Quick Ratio | 0.46x | 0.53x | 0.46x | 0.48x | 0.55x | 0.55x | 0.61x | 0.61x | 0.59x | 0.67x | 0.90x | 0.77x | 0.57x | 0.87x | 1.19x | 0.62x | 0.63x | 0.74x | 0.54x | 0.55x | 0.78x | 0.70x | 0.66x | 0.93x | 0.81x | 0.77x | 0.76x | 0.77x | 0.78x | 0.73x | 0.74x |
| Cash Conversion Cycle | 42.78 | 42.12 | 38.82 | 39.52 | 47.65 | 27.82 | 29.48 | 43.09 | 42.6 | 49.1 | 39.97 | 27.09 | 36.55 | 37.52 | 39.34 | 38.43 | 43.71 | 41.88 | 45.49 | 51.85 | 44.23 | 48.93 | 56.35 | 42.94 | 47.89 | 60.57 | 75.52 | 78.53 | 82.42 | 81.9 | 80.68 |
| Total Non-Current Liabilities | 13.47B | 14.38B | 12.77B | 12.61B | 13.53B | 12.51B | 12.2B | 11.85B | 11.11B | 12.26B | 2.04B | 2.77B | 2.02B | 2.08B | 2.57B | 1.55B | 1.5B | 1.44B | 873.38M | 928.23M | 927.91M | 1.08B | 1.1B | 1.07B | 1.01B | 998.81M | 1.16B | 1.19B | 1.24B | 1.33B | 542.4M |
| Long-Term Debt | 8.33B | 9.32B | 8.18B | 8.38B | 9.59B | 8.59B | 8.27B | 8.05B | 8.71B | 9.89B | 1.21B | 1.91B | 1.12B | 1.12B | 1.63B | 639.23M | 648.33M | 782.67M | 303.73M | 293.45M | 291.88M | 487M | 488.24M | 502.99M | 506.68M | 503.52M | 623.59M | 624.37M | 730.3M | 843.9M | 142.7M |
| Capital Lease Obligations | 6.43B | 1.59B | 1.56B | 1.51B | 1.51B | 1.47B | 1.43B | 1.37B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 2.95B | 765.3M | 607.5M | 683.1M | 681.6M | 768.2M | 846.1M | 969.9M | 1.13B | 1.42B | 73.83M | 138.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 2.73B | 2.71B | 2.43B | 2.04B | 1.75B | 1.68B | 1.65B | 1.46B | 1.27B | 959.1M | 759.74M | 723.18M | 906.2M | 957.04M | 934.33M | 910.44M | 847.53M | 656.57M | 569.65M | 634.77M | 636.04M | 597.22M | 614.82M | 566.59M | 500.24M | 495.29M | 539.98M | 569.03M | 507.3M | 484M | 399.7M |
| Total Liabilities | 23.1B | 21.3B | 19.58B | 19.24B | 19.49B | 18.23B | 16.79B | 16.37B | 15.4B | 16.25B | 4.87B | 4.91B | 4.7B | 4.61B | 4.44B | 3.71B | 3.56B | 2.83B | 2.81B | 3.07B | 3B | 2.64B | 2.62B | 2.22B | 2.09B | 2.14B | 2.28B | 2.33B | 2.35B | 2.44B | 1.59B |
| Total Debt | 14.22B | 12.94B | 11.91B | 11.81B | 12.51B | 11.5B | 10.11B | 10.43B | 9.34B | 10.52B | 1.95B | 1.95B | 1.8B | 1.72B | 1.7B | 993.37M | 1.04B | 817.61M | 833.74M | 965.45M | 874.51M | 621.17M | 738.27M | 513.59M | 521.68M | 615.37M | 749.82M | 746.63M | 848.5M | 1B | 312.9M |
| Net Debt | 13.92B | 12.74B | 11.7B | 11.53B | 12.31B | 11.33B | 9.89B | 10.27B | 9.19B | 10.32B | 1.06B | 1.74B | 1.76B | 976.98M | 842.3M | 960.67M | 986.21M | 748.28M | 807.52M | 938.12M | 405.34M | 585.13M | 692.34M | 210.78M | 357.67M | 496.56M | 746.92M | 728.01M | 829.4M | 1B | 311M |
| Debt / Equity | 3.69x | 2.81x | 2.94x | 3.18x | 4.03x | 4.72x | 2.80x | 2.53x | 2.50x | 2.88x | 1.04x | 2.25x | 1.81x | 0.97x | 0.95x | 0.65x | 0.65x | 0.55x | 0.52x | 0.54x | 0.44x | 0.36x | 0.45x | 0.35x | 0.39x | 0.41x | 0.51x | 0.44x | 0.49x | 0.63x | 0.22x |
| Debt / EBITDA | 3.19x | 2.95x | 2.72x | 2.79x | 3.49x | 3.55x | 2.94x | 3.48x | 3.76x | 4.80x | 1.02x | 1.08x | 1.20x | 1.29x | 1.52x | 1.04x | 1.13x | 0.94x | 0.83x | 0.84x | 0.83x | 0.69x | 0.96x | 0.74x | 0.78x | 0.96x | 1.03x | 1.02x | 1.25x | 1.52x | 0.60x |
| Net Debt / EBITDA | 3.12x | 2.90x | 2.67x | 2.73x | 3.44x | 3.50x | 2.88x | 3.42x | 3.69x | 4.71x | 0.56x | 0.96x | 1.17x | 0.73x | 0.75x | 1.01x | 1.07x | 0.86x | 0.81x | 0.82x | 0.39x | 0.65x | 0.90x | 0.31x | 0.53x | 0.78x | 1.03x | 1.00x | 1.22x | 1.51x | 0.60x |
| Interest Coverage | 7.76x | 8.12x | 8.96x | 8.16x | 7.35x | 7.49x | 8.16x | 6.48x | 4.59x | 6.34x | 19.46x | 22.10x | 20.60x | 19.30x | 22.20x | 18.45x | 10.60x | 16.56x | 11.88x | 13.75x | 13.43x | 15.21x | 15.83x | - | - | - | - | - | - | - | - |
| Total Equity | 3.85B | 4.6B | 4.05B | 3.72B | 3.1B | 2.44B | 3.61B | 4.12B | 3.73B | 3.65B | 1.88B | 867.91M | 996.47M | 1.77B | 1.79B | 1.52B | 1.61B | 1.49B | 1.61B | 1.79B | 1.99B | 1.73B | 1.65B | 1.46B | 1.34B | 1.49B | 1.47B | 1.7B | 1.72B | 1.59B | 1.4B |
| Equity Growth % | 14.86% | 13.5% | 9.03% | 19.78% | 27.28% | -32.5% | -12.43% | 10.52% | 2.27% | 94.2% | 116.43% | -12.9% | -43.85% | -0.96% | 18.12% | -5.75% | 7.95% | -7.14% | -10.08% | -10.37% | 15.12% | 4.83% | 13.17% | 8.72% | -9.8% | 1.08% | -13.34% | -1.01% | 7.77% | 13.63% | 15.6% |
| Book Value per Share | 15.60 | 18.48 | 15.94 | 14.39 | 11.85 | 9.12 | 13.19 | 14.71 | 13.09 | 12.81 | 6.63 | 3.08 | 3.39 | 5.74 | 5.75 | 4.78 | 4.93 | 4.31 | 4.48 | 4.55 | 4.83 | 4.08 | 3.81 | 3.31 | 2.95 | 3.17 | 3.06 | 3.35 | 3.29 | 3.05 | 2.71 |
| Total Shareholders' Equity | 3.85B | 4.6B | 4.05B | 3.72B | 3.1B | 2.44B | 3.61B | 4.12B | 3.73B | 3.65B | 1.88B | 867.91M | 996.47M | 1.77B | 1.79B | 1.52B | 1.61B | 1.49B | 1.61B | 1.79B | 1.99B | 1.73B | 1.65B | 1.46B | 1.34B | 1.49B | 1.47B | 1.7B | 1.72B | 1.59B | 1.4B |
| Common Stock | 83.3M | 83.1M | 92.5M | 91.8M | 91.2M | 90.8M | 89.9M | 119.4M | 118.4M | 117.6M | 116.56M | 115.76M | 114.53M | 112.9M | 111.62M | 107.45M | 231.35M | 228.65M | 227.15M | 225.58M | 222.99M | 218.94M | 216.4M | 212.41M | 209.84M | 208.03M | 206.85M | 206.31M | 0 | 0 | 0 |
| Retained Earnings | 2.01B | 1.03B | 7.25B | 5.29B | 3.52B | 2.12B | 844.3M | 7.37B | 6.25B | 5.46B | 4.05B | 3.23B | 2.42B | 1.77B | 1.23B | 756.37M | 4.82B | 4.52B | 4.25B | 3.94B | 3.49B | 3.04B | 2.7B | 2.4B | 2.16B | 2.12B | 1.95B | 2.02B | 1.8B | 1.6B | 1.41B |
| Treasury Stock | -1.97B | -84.3M | -6.99B | -5.23B | -3.78B | -2.87B | -96.5M | -5.84B | -4.9B | -4.27B | -4.24B | -4.22B | -3.15B | -1.64B | -849.68M | -276.65M | -4.39B | -4.01B | -3.47B | -3.07B | -2.2B | -1.89B | -1.53B | -1.27B | -1.03B | -837.28M | -678.78M | -533.89M | 0 | 0 | 0 |
| Accumulated OCI | -594.1M | -634.4M | -875.2M | -624.3M | -700.6M | -698.4M | -718.3M | -679.5M | -629.9M | -384.9M | -540.35M | -587.1M | -471.96M | -321.04M | -370.39M | -367.88M | -278.32M | -317.45M | -410.62M | -198.6M | -695.68M | -248.24M | -381.4M | -513.92M | -261.17M | -204.55M | -163.61M | -145.62M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High leverage and demand stagnation
Total debt rose from $11.9B in 2024Q4 to $14.2B in 2026Q2, while cash remained below $300M, according to recent SEC filings, indicating a balance sheet that is becoming more leveraged over time.
The sequential increase in debt, coupled with a decline in equity from $4.6B to $3.9B over the same period, suggests that the company is funding its operations and capital returns through additional borrowing. This trend appears to be driven by aggressive share repurchases and dividends, as highlighted in the cash flow analysis, which may strain the balance sheet if free cash flow does not keep pace. Investors should monitor whether this leverage is a temporary strategic move or a structural shift.
Debt-to-equity rose to 3.69 in 2026Q2 from 2.94 in 2024Q4, as reported in financial statements, indicating increasing reliance on debt financing even as equity shrinks, a trend that warrants close monitoring.
The absolute debt level has increased by nearly $2.3B over the trailing two years, while equity has contracted, pushing the D/E ratio to its highest point in the observed period. This suggests that the company is not deleveraging as might be expected post-acquisition, but rather is taking on additional leverage to fund shareholder returns. Given the company's high fixed-cost base and sensitivity to housing demand, this leverage could amplify earnings volatility if volumes remain weak.
Total assets grew to $27.0B in 2026Q2 from $23.4B in 2024Q1, with goodwill rising to $8.0B and net PPE to $6.3B, based on reported figures, indicating continued investment in both acquisitions and physical capacity.
The increase in goodwill, from $7.6B to $8.0B, suggests that the company has been making acquisitions, which may carry integration risk. Meanwhile, the steady rise in net PPE, from $4.9B to $6.3B, reflects ongoing capital expenditure, though the cash flow analysis indicates that capex intensity has declined recently. This asset mix implies a business that is becoming more asset-heavy, which could pressure returns if demand does not recover.
Retained earnings swung from $8.7B in 2025Q3 to $2.0B in 2026Q2, while total equity fell to $3.9B, according to recent SEC filings, suggesting that share repurchases and dividends are consuming more capital than retained profits.
The dramatic drop in retained earnings, from $8.7B to $2.0B, is likely due to a combination of dividend payments and share repurchases that exceed net income, as well as potential accounting adjustments. This trend, if continued, could erode the equity base and increase financial risk. The company's aggressive buyback program, noted in the cash flow analysis, appears to be a primary driver, and investors should assess whether this is a prudent use of capital given the rising debt load.
The current ratio has stayed below 1.0 for all ten quarters, dipping to 0.73 in 2026Q2, as reported in financial statements, indicating that short-term obligations exceed current assets, a persistent liquidity concern.
With cash balances consistently under $300M and a current ratio below 1, the company appears to rely heavily on its ability to roll over short-term debt and access credit markets. This is typical for a company with strong cash flow generation, but it leaves little buffer against unexpected shocks. The low cash position, combined with high leverage, suggests that any disruption in operating cash flow could quickly strain liquidity.
Goodwill of $8.0B represents over 200% of total equity, and debt-to-equity of 3.69 is the highest in the observed period, based on reported figures, suggesting that headline equity figures may overstate the company's financial resilience.
The large goodwill balance, stemming from acquisitions like Valspar, is a non-cash asset that may be subject to impairment if the acquired businesses underperform. Additionally, the high leverage ratio indicates that the company's equity cushion is thin, making it vulnerable to earnings downturns. Investors should look beyond the reported equity and consider the quality of assets and the sustainability of debt levels, especially given the stagnant demand environment.
Quick answers to the most common questions about buying SHW stock.
As of 2025, The Sherwin-Williams Company (SHW) had total assets of $25.90B including $6.01B in current assets.
The Sherwin-Williams Company (SHW) carries total debt of $12.94B, offset by $207.2M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
The Sherwin-Williams Company (SHW) has total shareholders' equity (book value) of $4.60B ($18.48 book value per share). Book value represents the net worth of the company belonging to common stock holders.
The Sherwin-Williams Company (SHW) reported a current ratio of 0.87x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.