WW Grainger Inc (GWW)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 6,496,000 | 5,849,000 | 4,720,000 | 4,238,000 | 4,397,000 |
| Revenue | US$ in thousands | 16,387,000 | 15,137,000 | 12,937,000 | 11,598,000 | 11,413,000 |
| Gross profit margin | 39.64% | 38.64% | 36.48% | 36.54% | 38.53% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $6,496,000K ÷ $16,387,000K
= 39.64%
The gross profit margin of W.W. Grainger Inc. has shown a generally increasing trend over the past five years. In 2023, the company achieved a gross profit margin of 39.42%, which is higher than the margins of 38.41% in 2022, 36.25% in 2021, and 35.92% in 2020 but slightly lower than the 38.28% margin in 2019.
This improvement in gross profit margin indicates that the company has been more effective in generating profits from its sales revenue in recent years. A rising gross profit margin suggests that the company has been able to control its costs of goods sold or increase the prices of its products/services.
Overall, the increasing trend in the gross profit margin for W.W. Grainger Inc. reflects positively on the company's profitability and operational efficiency.