WW Grainger Inc (GWW)
Total 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 |
| Total assets | US$ in thousands | 8,829,000 | 9,114,000 | 8,352,000 | 8,400,000 | 8,147,000 | 8,140,000 | 8,031,000 | 7,825,000 | 7,588,000 | 7,201,000 | 7,049,000 | 6,993,000 | 6,592,000 | 6,390,000 | 6,462,000 | 6,333,000 | 6,295,000 | 6,583,000 | 7,194,000 | 7,177,000 |
| 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 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $17,168,000K ÷ $8,829,000K
= 1.94
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. For WW Grainger Inc, the total asset turnover has shown a generally increasing trend from 1.63 in March 31, 2020, to 1.94 in March 31, 2024. This indicates that the company has been effectively utilizing its assets to generate sales over the years.
However, there are fluctuations in the ratio over the period, with peaks observed in September 30, 2022, and December 31, 2023, at 2.05 and 2.02, respectively. These fluctuations could be attributed to changes in business operations, market conditions, or strategic initiatives undertaken by the company.
The ratio dropped to 1.86 on September 30, 2024, which could indicate a temporary decline in the efficiency of asset utilization during that period. Monitoring this ratio over time can provide insights into the company's operational efficiency and effectiveness in utilizing its assets to drive sales growth.