WW Grainger Inc (GWW)
Total asset 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 |
| Total assets | US$ in thousands | 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 | 6,005,000 | 5,922,000 | 5,992,000 | 6,014,000 |
| Total asset turnover | 2.01 | 1.99 | 1.98 | 1.99 | 1.99 | 2.04 | 2.00 | 1.93 | 1.96 | 1.96 | 1.89 | 1.86 | 1.86 | 1.77 | 1.61 | 1.62 | 1.90 | 1.91 | 1.87 | 1.86 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $16,387,000K ÷ $8,147,000K
= 2.01
Based on the information provided, the total asset turnover of W.W. Grainger Inc. has been relatively stable over the past eight quarters, ranging from 1.94 to 2.05. This ratio indicates the company's ability to generate sales revenue in relation to its total assets. A total asset turnover ratio above 1 suggests effective utilization of assets to generate sales.
W.W. Grainger Inc. has consistently maintained a total asset turnover ratio above 2 in some quarters, which indicates that the company is efficient in generating revenue relative to its asset base during those periods. However, there have been quarters where the ratio dipped slightly below 2, potentially indicating a temporary decrease in sales efficiency.
Overall, W.W. Grainger Inc.'s total asset turnover ratio reflects a generally healthy operational efficiency and asset utilization. It's important for the company to continue monitoring and managing its assets effectively to sustain or improve this metric in the future.