WW Grainger Inc (GWW)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 16,387,000 | 16,192,000 | 15,923,000 | 15,580,000 | 15,137,000 | 14,695,000 | 14,128,000 | 13,498,000 | 12,937,000 | 12,539,000 | 12,184,000 | 11,808,000 | 11,725,000 | 11,631,000 | 11,562,000 | 11,624,000 | 11,422,000 | 11,338,000 | 11,221,080 | 11,187,370 |
| Receivables | US$ in thousands | 2,192,000 | 2,444,000 | 2,418,000 | 2,294,000 | 2,133,000 | 2,158,000 | 2,099,000 | 2,001,000 | 1,754,000 | 1,742,000 | 1,634,000 | 1,576,000 | 1,474,000 | 1,485,000 | 1,460,000 | 1,613,000 | 1,425,000 | 1,495,000 | 1,503,000 | 1,485,000 |
| Receivables turnover | 7.48 | 6.63 | 6.59 | 6.79 | 7.10 | 6.81 | 6.73 | 6.75 | 7.38 | 7.20 | 7.46 | 7.49 | 7.95 | 7.83 | 7.92 | 7.21 | 8.02 | 7.58 | 7.47 | 7.53 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $16,387,000K ÷ $2,192,000K
= 7.48
W.W. Grainger Inc.'s receivables turnover ratio has exhibited a consistent trend over the past eight quarters, ranging from 6.62 to 7.52. The ratio indicates how efficiently the company is collecting on its accounts receivable during a specific period.
The average receivables turnover for the past four quarters is 6.91. This suggests that, on average, the company collected its outstanding receivables approximately 6.91 times within a year. A higher receivables turnover ratio is generally favorable as it indicates that the company is effectively converting its credit sales into cash.
The ratio has been relatively stable, hovering around the average figure, with some fluctuations but no distinct upward or downward trend. This stability indicates that W.W. Grainger Inc. has been consistent in managing and collecting its accounts receivable efficiently over the analyzed periods.
Overall, the company's steady performance in terms of receivables turnover suggests effective credit management and collection practices, contributing to the optimization of its working capital and liquidity position.