WW Grainger Inc (GWW)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,036,000 | 1,448,000 | 769,000 | 804,000 | 660,000 | 601,000 | 515,000 | 461,000 | 325,000 | 315,000 | 262,000 | 364,000 | 241,000 | 328,000 | 547,000 | 562,000 | 585,000 | 859,000 | 1,603,000 | 1,492,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,305,000 | 2,383,000 | 2,397,000 | 2,528,000 | 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 |
| Cash ratio | 0.45 | 0.61 | 0.32 | 0.32 | 0.36 | 0.32 | 0.27 | 0.24 | 0.16 | 0.18 | 0.15 | 0.21 | 0.16 | 0.21 | 0.34 | 0.37 | 0.41 | 0.60 | 1.15 | 0.99 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,036,000K
+ $—K)
÷ $2,305,000K
= 0.45
The cash ratio of WW Grainger Inc has fluctuated over the specified period, ranging from a low of 0.15 on June 30, 2022, to a high of 1.15 on June 30, 2020. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using cash on hand.
The trend in WW Grainger Inc's cash ratio shows a general decrease over the years, reaching a low point of 0.15 on June 30, 2022, before recovering slightly. However, it is essential to note that the cash ratio alone may not provide a complete picture of the company's liquidity position, as it does not consider other current assets that can be converted into cash quickly. Therefore, it is advisable to assess the cash ratio in conjunction with other liquidity ratios to gain a more comprehensive understanding of WW Grainger Inc's liquidity position.