WW Grainger Inc (GWW)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,637,000 | 2,565,000 | 2,215,000 | 1,547,000 | 1,019,000 |
| Revenue | US$ in thousands | 17,168,000 | 16,478,000 | 15,228,000 | 13,022,000 | 11,797,000 |
| Operating profit margin | 15.36% | 15.57% | 14.55% | 11.88% | 8.64% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,637,000K ÷ $17,168,000K
= 15.36%
WW Grainger Inc's operating profit margin has shown a consistent upward trend over the past five years, indicating improved operational efficiency and profitability.
Starting at 8.64% on December 31, 2020, the operating profit margin increased to 11.88% by December 31, 2021, showing a significant improvement in profitability. This positive momentum continued in the following years, with the margin rising to 14.55% on December 31, 2022, 15.57% on December 31, 2023, and then slightly decreasing to 15.36% by December 31, 2024.
Overall, the company has demonstrated an ability to generate more profit from its operations over the years, indicating effective cost management and potentially increasing revenue streams. This trend suggests that WW Grainger Inc has been successful in enhancing its operational performance and achieving better profitability ratios.