WW Grainger Inc (GWW)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 14,127,000 | 13,237,000 | 11,660,000 | 11,147,000 | 10,576,000 |
| Payables | US$ in thousands | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $14,127,000K ÷ $—K
= —
The payables turnover ratio for W.W. Grainger Inc. has shown fluctuations over the past five years. The ratio increased from 9.86 in 2019 to 10.17 in 2021, indicating an improvement in the company's ability to efficiently manage its accounts payable during that period. However, in 2022, the ratio decreased to 8.96 before rebounding to 10.46 in 2023.
A higher payables turnover ratio signifies that the company is paying off its suppliers more frequently within a given period. This could indicate favorable credit terms with suppliers or effective management of working capital. On the other hand, a lower ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or indicate liquidity issues.
Overall, W.W. Grainger Inc.'s payables turnover has been relatively healthy, indicating efficient management of its accounts payable in recent years. Further analysis of the company's financial statements and industry benchmarks may provide more insights into the effectiveness of its payables management strategy.