WW Grainger Inc (GWW)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.88 | 2.85 | 2.78 | 2.70 | 2.48 | 2.63 | 2.58 | 2.55 | 2.62 | 2.58 | 2.55 | 2.57 | 2.72 | 2.97 | 3.54 | 3.28 | 2.12 | 2.16 | 2.38 | 2.40 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,274,000K ÷ $1,831,000K
= 2.88
W.W. Grainger Inc.'s current ratio has shown a general upward trend over the past eight quarters, indicating an improvement in the company's short-term liquidity position. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has increased from 2.48 in Q4 2022 to 2.88 in Q4 2023.
A current ratio above 1.0 is typically considered healthy, as it suggests that the company has more current assets than current liabilities. W.W. Grainger Inc.'s current ratio has consistently remained well above 1.0, indicating that the company has a strong ability to cover its short-term debts using its current assets.
The increasing current ratio trend suggests that W.W. Grainger Inc. has been effectively managing its current assets and liabilities over the past year. This could be a sign of efficient working capital management and financial stability. However, it is important to monitor the current ratio over time to ensure that the company maintains sufficient liquidity to meet its short-term obligations.