WW Grainger Inc (GWW)
Working capital 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 current assets | US$ in thousands | 5,274,000 | 5,412,000 | 5,343,000 | 5,190,000 | 4,977,000 | 4,686,000 | 4,513,000 | 4,439,000 | 4,011,000 | 4,005,000 | 4,057,000 | 3,934,000 | 3,919,000 | 4,273,000 | 4,918,000 | 4,914,000 | 3,555,000 | 3,396,000 | 3,456,000 | 3,508,000 |
| Total current liabilities | US$ in thousands | 1,831,000 | 1,898,000 | 1,920,000 | 1,924,000 | 2,010,000 | 1,785,000 | 1,750,000 | 1,742,000 | 1,528,000 | 1,550,000 | 1,589,000 | 1,531,000 | 1,441,000 | 1,441,000 | 1,388,000 | 1,500,000 | 1,678,000 | 1,572,000 | 1,452,000 | 1,462,000 |
| Working capital turnover | 4.76 | 4.61 | 4.65 | 4.77 | 5.10 | 5.07 | 5.11 | 5.00 | 5.21 | 5.11 | 4.94 | 4.91 | 4.73 | 4.11 | 3.28 | 3.40 | 6.09 | 6.22 | 5.60 | 5.47 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $16,387,000K ÷ ($5,274,000K – $1,831,000K)
= 4.76
The working capital turnover ratio for W.W. Grainger Inc. has been relatively stable over the past eight quarters, ranging from a low of 4.63 in Q3 2023 to a high of 5.14 in Q2 2022. This ratio indicates that, on average, the company is able to generate approximately 4.79 times its working capital in sales revenue in Q4 2023.
A working capital turnover ratio of 4.79 means that for every dollar of working capital invested in the business, W.W. Grainger Inc. is generating $4.79 in sales. This suggests that the company efficiently utilizes its working capital to generate revenue, indicating strong operational efficiency.
However, it is important to note that working capital turnover ratios can vary between industries and companies, and it is crucial to compare this ratio with industry benchmarks and historical trends of the company. Overall, a stable and relatively high working capital turnover ratio for W.W. Grainger Inc. indicates effective management of working capital and efficient utilization of resources to drive sales.