WW Grainger Inc (GWW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 8,829,000 | 8,147,000 | 7,588,000 | 6,592,000 | 6,295,000 |
| Operating ROA | 29.87% | 31.48% | 29.19% | 23.47% | 16.19% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,637,000K ÷ $8,829,000K
= 29.87%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the efficiency with which WW Grainger Inc generates profits from its operational assets. From the data provided, it is evident that WW Grainger Inc's Operating ROA has displayed a positive trend over the years, reflecting improving operational efficiency and profitability.
As of December 31, 2020, WW Grainger Inc's Operating ROA stood at 16.19%, indicating that for every dollar of assets the company utilized in its operations, it generated a return of 16.19 cents. This ratio increased significantly by the end of 2023, reaching 31.48%, demonstrating a noteworthy enhancement in operational performance and asset utilization efficiency.
However, it is interesting to note that the Operating ROA dipped slightly to 29.87% by December 31, 2024. This slight decrease may signal a need for further analysis to understand the underlying reasons for the change, as it could be influenced by various factors such as changes in revenue, expenses, or asset structure.
Overall, the positive trajectory of WW Grainger Inc's Operating ROA over the years indicates a strong performance in terms of efficiency and profitability in utilizing its operational assets to generate returns for its stakeholders.