WW Grainger Inc (GWW)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 17,168,000 | 16,932,000 | 16,752,000 | 16,622,000 | 16,478,000 | 16,283,000 | 16,017,000 | 15,672,000 | 15,228,000 | 14,785,000 | 14,215,000 | 13,585,000 | 13,022,000 | 12,604,000 | 12,250,000 | 11,880,000 | 11,797,000 | 11,703,000 | 11,632,000 | 11,688,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 1,956,000 | 1,913,000 | 1,468,000 | 1,828,000 | 1,409,000 | 1,438,000 | 1,434,000 | 1,817,000 | 1,429,000 | 1,436,000 | 1,441,000 | 1,395,000 | 1,394,000 | 1,365,000 | 1,357,000 |
| Fixed asset turnover | — | — | — | — | — | 8.32 | 8.37 | 10.68 | 8.33 | 10.49 | 9.89 | 9.47 | 7.17 | 8.82 | 8.53 | 8.24 | 8.46 | 8.40 | 8.52 | 8.61 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,168,000K ÷ $—K
= —
The fixed asset turnover ratio for WW Grainger Inc has fluctuated over the period of analysis. Starting at 8.61 on March 31, 2020, the ratio decreased slightly before trending upwards to reach its peak of 10.68 on March 31, 2023. This indicates that the company generated $10.68 in sales for every dollar invested in fixed assets at that point in time.
However, there was a significant drop in the ratio to 8.37 on June 30, 2023, before stabilizing around 8.32 in the subsequent quarters. The ratio was not available for the last quarter of 2023 and remained missing for the next reporting periods in 2024.
Overall, the increasing trend in the fixed asset turnover ratio from 2020 to 2023 suggests that the company was effectively utilizing its fixed assets to generate sales. The drop in the ratio in mid-2023 may indicate a decline in efficiency or changes in the company's operations. Further monitoring of the fixed asset turnover ratio is necessary to assess the company's performance in utilizing its fixed assets for revenue generation.