WW Grainger Inc (GWW)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,168,000 | 16,478,000 | 15,228,000 | 13,022,000 | 11,797,000 |
| Total current assets | US$ in thousands | 5,737,000 | 5,274,000 | 4,977,000 | 4,011,000 | 3,919,000 |
| Total current liabilities | US$ in thousands | 2,305,000 | 1,831,000 | 2,010,000 | 1,528,000 | 1,441,000 |
| Working capital turnover | 5.00 | 4.79 | 5.13 | 5.24 | 4.76 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,168,000K ÷ ($5,737,000K – $2,305,000K)
= 5.00
WW Grainger Inc's working capital turnover has shown a relatively consistent trend over the past five years. The ratio, which measures how efficiently the company utilizes its working capital to generate sales, increased from 4.76 in 2020 to 5.24 in 2021, indicating an improvement in the utilization of working capital. However, there was a slight decline in 2022 to 5.13, followed by a further decrease to 4.79 in 2023. The ratio then rebounded in 2024 to 5.00.
Overall, the fluctuations in working capital turnover suggest that WW Grainger Inc has been managing its working capital effectively in recent years, with some variability in efficiency. It is important for the company to closely monitor and potentially improve its working capital turnover to ensure optimal utilization of its resources.