WW Grainger Inc (GWW)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,565,000 | 2,215,000 | 1,547,000 | 1,019,000 | 1,262,000 |
| Revenue | US$ in thousands | 16,387,000 | 15,137,000 | 12,937,000 | 11,598,000 | 11,413,000 |
| Operating profit margin | 15.65% | 14.63% | 11.96% | 8.79% | 11.06% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,565,000K ÷ $16,387,000K
= 15.65%
W.W. Grainger Inc.'s operating profit margin has shown a consistent upward trend over the past five years, reflecting a positive performance in managing its operating expenses relative to its sales revenue. The company's operating profit margin has increased from 10.99% in 2019 to 15.57% in 2023, indicating an improvement in operational efficiency and profitability.
The steady growth in operating profit margin suggests that W.W. Grainger Inc. has been successful in controlling its operating costs and enhancing productivity. This trend may be attributed to effective cost management strategies, operational streamlining, and potentially better utilization of resources.
Overall, the increasing trend in W.W. Grainger Inc.'s operating profit margin underscores the company's ability to generate more profits from its core business activities over the years, which is a positive indicator of financial health and operational effectiveness.