WW Grainger Inc (GWW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.36% | 39.42% | 38.41% | 36.25% | 35.92% |
| Operating profit margin | 15.36% | 15.57% | 14.55% | 11.88% | 8.64% |
| Pretax margin | 15.05% | 15.17% | 14.09% | 11.40% | 8.03% |
| Net profit margin | 11.12% | 11.10% | 10.16% | 8.01% | 5.89% |
WW Grainger Inc has shown a consistent improvement in its profitability over the years based on key profitability ratios. The Gross Profit Margin has increased from 35.92% in 2020 to 39.36% in 2024, indicating the company's ability to generate more profit on sales after accounting for the cost of goods sold.
Similarly, the Operating Profit Margin has also exhibited a positive trend, rising from 8.64% in 2020 to 15.36% in 2024. This signifies that the company's operational efficiency and cost management have improved significantly, leading to higher profitability from its core business activities.
Moreover, the Pretax Margin has shown a consistent growth trajectory, increasing from 8.03% in 2020 to 15.05% in 2024. This indicates that Grainger has been successful in managing its operating expenses and other costs efficiently, resulting in higher earnings before taxes.
Finally, the Net Profit Margin has also experienced a steady increase over the years, climbing from 5.89% in 2020 to 11.12% in 2024. This improvement reflects the company's ability to generate higher profits after considering all expenses, including taxes, and indicates a positive trend in overall profitability.
In conclusion, WW Grainger Inc's profitability ratios demonstrate a strong performance with increasing margins across the board, highlighting the company's effective cost management strategies and overall financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 29.87% | 31.48% | 29.19% | 23.47% | 16.19% |
| Return on assets (ROA) | 21.62% | 22.45% | 20.39% | 15.82% | 11.04% |
| Return on total capital | 71.64% | 82.34% | 80.59% | 71.85% | 49.69% |
| Return on equity (ROE) | 51.55% | 58.72% | 56.56% | 48.29% | 33.21% |
WW Grainger Inc has shown a consistent improvement in profitability ratios over the years.
- Operating return on assets has increased from 16.19% in 2020 to 29.87% in 2024, indicating that the company is effectively generating operating profits from its assets.
- Return on assets has also shown a positive trend, growing from 11.04% in 2020 to 21.62% in 2024, reflecting the efficiency of the company in generating profits relative to its total assets.
- The return on total capital has been fluctuating but generally increasing, reaching 82.34% in 2023 before declining slightly to 71.64% in 2024. This ratio demonstrates how effectively the company is utilizing its total capital to generate returns.
- Return on equity has consistently improved over the years, rising from 33.21% in 2020 to 51.55% in 2024, indicating that the company is successful in delivering returns to its shareholders based on their equity investments.
Overall, WW Grainger Inc's profitability ratios suggest that the company is effectively utilizing its assets and capital to generate profits, thereby enhancing shareholder value.