WW Grainger Inc (GWW)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 5.00 | 4.46 | 5.36 | 5.52 | 4.79 | 4.63 | 4.68 | 4.80 | 5.13 | 5.10 | 5.14 | 5.04 | 5.24 | 5.13 | 4.96 | 4.94 | 4.76 | 4.13 | 3.30 | 3.42 |
The analysis of WW Grainger Inc's activity ratios reveals the following trends:
1. Inventory Turnover: The inventory turnover ratio has shown a relatively stable performance over the period from March 31, 2020, to December 31, 2024, ranging from 4.16 to 4.74. This indicates that the company is effectively managing its inventory by converting it into sales. However, a slight dip in the ratio was observed in the most recent period.
2. Receivables Turnover: The data shows that there is no information available for the receivables turnover ratio for any of the periods provided. This lack of information makes it challenging to assess the efficiency of Grainger's accounts receivable management.
3. Payables Turnover: Similar to receivables turnover, there is no data available for the payables turnover ratio for any of the periods provided. As a result, it is not possible to evaluate how efficiently the company is managing its accounts payable.
4. Working Capital Turnover: The working capital turnover ratio has fluctuated during the period under review, starting at 3.42 on March 31, 2020, and reaching a peak of 5.52 on March 31, 2024. This indicates that Grainger has been effectively utilizing its working capital to generate revenue, with a noticeable increase in efficiency over the years.
Overall, while the inventory turnover and working capital turnover ratios show positive trends, the lack of data for receivables and payables turnover ratios limits the comprehensive assessment of WW Grainger Inc's overall activity efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 80.85 | 77.00 | 77.83 | 78.77 | 82.86 | 81.42 | 83.53 | 85.87 | 87.68 | 82.26 | 81.72 | 82.11 | 82.22 | 80.38 | 78.55 | 79.71 | 83.68 | 87.68 | 84.59 | 81.14 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, let's analyze the activity ratios of WW Grainger Inc:
1. Days of Inventory on Hand (DOH):
- The DOH for WW Grainger Inc has varied over the reported periods, ranging from a low of 77.00 days to a high of 87.68 days.
- Generally, a lower DOH indicates efficient inventory management as the company is turning over its inventory more quickly.
- In the last reported period, the DOH stood at 80.85 days, which suggests that the company had inventory on hand for about 80.85 days based on its sales activity.
2. Days of Sales Outstanding (DSO):
- Data for DSO is not available for WW Grainger Inc across the reported periods.
- DSO is a measure of how long it takes for a company to collect its accounts receivable. Without this data, it is not possible to evaluate the efficiency of the company in collecting outstanding payments from its customers.
3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not provided for WW Grainger Inc for the reported periods.
- This ratio would have indicated the number of days the company takes to pay its suppliers, reflecting its liquidity and vendor management practices.
In conclusion, based on the available data, we can assess WW Grainger Inc's inventory management efficiency through its DOH. However, the absence of information on DSO and the number of days of payables restricts a comprehensive analysis of the company's overall activity and liquidity management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.94 | 1.86 | 2.01 | 1.98 | 2.02 | 2.00 | 1.99 | 2.00 | 2.01 | 2.05 | 2.02 | 1.94 | 1.98 | 1.97 | 1.90 | 1.88 | 1.87 | 1.78 | 1.62 | 1.63 |
WW Grainger Inc's fixed asset turnover ratio has shown some fluctuation over the past few years, ranging from a low of 7.17 to a high of 10.68. This ratio measures how efficiently the company is generating sales from its fixed assets, such as property, plant, and equipment. An increasing trend in fixed asset turnover indicates that the company is utilizing its fixed assets more effectively to generate revenue.
On the other hand, the total asset turnover ratio, which measures the efficiency of the company in generating sales from all its assets, has been relatively stable, ranging from 1.62 to 2.05. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets.
Overall, both ratios provide insights into how effectively WW Grainger Inc is utilizing its assets to generate revenue. The fluctuation in fixed asset turnover suggests changes in how efficiently the company is utilizing its fixed assets, while the stability of the total asset turnover ratio indicates consistent performance in generating sales from all assets.