WW Grainger Inc (GWW)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,036,000 | 660,000 | 325,000 | 241,000 | 585,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,305,000 | 1,831,000 | 2,010,000 | 1,528,000 | 1,441,000 |
| Quick ratio | 0.45 | 0.36 | 0.16 | 0.16 | 0.41 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,036,000K
+ $—K
+ $—K)
÷ $2,305,000K
= 0.45
The quick ratio of WW Grainger Inc has shown fluctuations over the past five years. In 2020, the quick ratio stood at 0.41, indicating that the company had $0.41 in liquid assets available to cover each $1 of its current liabilities. However, by the end of 2021 and 2022, the quick ratio decreased to 0.16, signaling a significant decline in the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio improved slightly in 2023 to 0.36, suggesting a partial recovery in the company's liquidity position. By the end of 2024, the quick ratio further increased to 0.45, indicating that WW Grainger Inc had improved its ability to cover its short-term liabilities with liquid assets.
Overall, the fluctuation in the quick ratio of WW Grainger Inc over the years highlights the importance of carefully monitoring liquidity levels to ensure the company can meet its short-term obligations effectively.