WW Grainger Inc (GWW)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.49 | 2.88 | 2.48 | 2.62 | 2.72 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,737,000K ÷ $2,305,000K
= 2.49
Based on the provided data, WW Grainger Inc's current ratio has shown some fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term obligations using its current assets.
In December 2020, the current ratio was 2.72, indicating that the company had $2.72 in current assets for every $1 in current liabilities. The ratio decreased to 2.62 by December 2021, suggesting a slight decline in liquidity.
By December 2022, the current ratio fell further to 2.48, potentially indicating potential challenges in meeting short-term obligations. However, in December 2023, the ratio improved to 2.88, showing a strengthened liquidity position.
The most recent data point in December 2024 shows a current ratio of 2.49, which is slightly lower compared to the previous year but still demonstrates that the company has sufficient current assets to cover its current liabilities.
Overall, while there have been fluctuations in WW Grainger Inc's current ratio over the years, the company has generally maintained a healthy liquidity position, with the ability to meet its short-term obligations. It is important to monitor future trends in the current ratio to assess the company's ongoing liquidity management.