SHW · 10-Q · 2026Q1 · Full report

Working Capital and Receivables

SHERWIN WILLIAMS CO · 2026-04-28 · Importance 89 · Surprise 82

Net working capital improved by $802.1 million year-over-year to a deficit of $1.035 billion at March 31, 2026, driven by a $460.0 million increase in current assets and a $342.1 million decrease in current liabilities. Current assets rose primarily due to a $379.0 million increase in accounts receivable and a $105.9 million increase in other current assets (prepaids and recoverable taxes); inventories decreased by $42.0 million. Short-term borrowings and accounts payable movements affected current liabilities, while the current portion of long-term debt declined by $1.151 billion. The current ratio improved but remained below 1.0 at 0.86 as of March 31, 2026.

Key facts

• Current asset balances increased $460.0 million at March 31, 2026 compared to March 31, 2025 due to an increase in Accounts receivable, net of $379.0 million, an increase in Other current assets of $105.9 million and an increase in Cash and cash equivalents of $17.1 million, partially offset by a decrease in Inventories of $42.0 million.

Impact estimates