WW Grainger Inc (GWW)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,410,000 | 10,287,000 | 10,172,000 | 10,092,000 | 9,982,000 | 9,844,000 | 9,714,000 | 9,572,000 | 9,379,000 | 9,189,000 | 8,888,000 | 8,575,000 | 8,302,000 | 8,110,000 | 7,932,000 | 7,670,000 | 7,559,000 | 7,410,000 | 7,314,000 | 7,265,000 |
| Inventory | US$ in thousands | 2,306,000 | 2,170,000 | 2,169,000 | 2,178,000 | 2,266,000 | 2,196,000 | 2,223,000 | 2,252,000 | 2,253,000 | 2,071,000 | 1,990,000 | 1,929,000 | 1,870,000 | 1,786,000 | 1,707,000 | 1,675,000 | 1,733,000 | 1,780,000 | 1,695,000 | 1,615,000 |
| Inventory turnover | 4.51 | 4.74 | 4.69 | 4.63 | 4.41 | 4.48 | 4.37 | 4.25 | 4.16 | 4.44 | 4.47 | 4.45 | 4.44 | 4.54 | 4.65 | 4.58 | 4.36 | 4.16 | 4.32 | 4.50 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,410,000K ÷ $2,306,000K
= 4.51
WW Grainger Inc's inventory turnover ratio over the past few years has exhibited a relatively stable trend. The ratio fluctuated between 4.16 and 4.74, with the highest value observed on September 30, 2024, at 4.74, indicating that the company turned over its inventory approximately 4.74 times during that period. This suggests that Grainger efficiently managed its inventory levels, converting stock into sales effectively.
Overall, the consistency of the inventory turnover ratio suggests that the company has a well-optimized inventory management system in place. A higher turnover ratio generally indicates a more efficient use of inventory and can also reflect strong demand for the company's products. However, it is essential for WW Grainger Inc to monitor and assess its inventory turnover ratio continuously to ensure optimal management of its inventory levels and meet customer demand effectively.