WW Grainger Inc (GWW)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.64% | 38.64% | 36.48% | 36.54% | 38.53% |
| Operating profit margin | 15.65% | 14.63% | 11.96% | 8.79% | 11.06% |
| Pretax margin | 14.80% | 13.74% | 10.93% | 7.65% | 10.19% |
| Net profit margin | 11.16% | 10.22% | 8.06% | 5.99% | 7.44% |
W.W. Grainger Inc.'s profitability ratios have shown a positive trend over the past five years. The gross profit margin has consistently increased from 38.28% in 2019 to 39.42% in 2023, reflecting the company's ability to effectively manage its cost of goods sold. This indicates efficient production and pricing strategies.
Similarly, the operating profit margin has gradually improved from 10.99% in 2019 to 15.57% in 2023, indicating that the company has been successful in controlling its operating expenses while increasing sales. This suggests effective management of core business operations.
The pretax margin has also shown a consistent upward trend, increasing from 10.53% in 2019 to 15.17% in 2023. This indicates the company's ability to generate higher profits before accounting for taxes, reflecting improved operational efficiency and profitability.
Furthermore, the net profit margin has demonstrated steady growth over the years, rising from 7.39% in 2019 to 11.10% in 2023. This shows that the company has been successful in increasing its bottom-line profitability after accounting for all expenses, including taxes.
Overall, W.W. Grainger Inc.'s profitability ratios suggest a positive trajectory, indicating improved efficiency in cost management, operational performance, and overall profitability over the analyzed period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 31.48% | 29.19% | 23.47% | 16.19% | 21.02% |
| Return on assets (ROA) | 22.45% | 20.39% | 15.82% | 11.04% | 14.14% |
| Return on total capital | 47.67% | 46.89% | 36.52% | 24.16% | 33.48% |
| Return on equity (ROE) | 58.72% | 63.40% | 55.66% | 38.02% | 45.77% |
W.W. Grainger Inc. has shown consistent improvement in its profitability ratios over the past five years. The operating return on assets (Operating ROA) has been steadily increasing, indicating the company's ability to generate profit from its assets through operations. This suggests efficient management of assets to drive operational income.
Similarly, the Return on Assets (ROA) and Return on Total Capital ratios have also shown an upward trend, reflecting the company's ability to generate profit from its total assets and overall capital employed in the business. This indicates that W.W. Grainger Inc. has been effective in utilizing its resources to generate income for its stakeholders.
The Return on Equity (ROE) has also demonstrated an upward trajectory, illustrating the company's ability to generate profit from shareholders' equity. This indicates that shareholders have been receiving a good return on their investments in the company.
Overall, the profitability ratios of W.W. Grainger Inc. show a positive trend, suggesting strong financial performance and efficient use of resources to generate profits over the years.