WW Grainger Inc (GWW)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,829,000 | 1,547,000 | 1,043,000 | 695,000 | 849,000 |
| Revenue | US$ in thousands | 16,387,000 | 15,137,000 | 12,937,000 | 11,598,000 | 11,413,000 |
| Net profit margin | 11.16% | 10.22% | 8.06% | 5.99% | 7.44% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,829,000K ÷ $16,387,000K
= 11.16%
The net profit margin of W.W. Grainger Inc. has shown a generally positive trend over the last five years. The company's net profit margin increased from 7.39% in 2019 to 11.10% in 2023, indicating an improvement in the company's ability to convert revenue into profit. This upward trend suggests that the company has been effectively managing its expenses and generating higher profits relative to its revenue. Overall, the increasing net profit margin reflects positively on W.W. Grainger Inc.'s profitability and operational efficiency during the period under consideration.