WW Grainger Inc (GWW)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,565,000 | 2,552,000 | 2,488,000 | 2,361,000 | 2,215,000 | 2,088,000 | 1,923,000 | 1,723,000 | 1,547,000 | 1,405,000 | 1,347,000 | 1,218,000 | 1,019,000 | 925,000 | 883,000 | 1,058,000 | 1,262,000 | 1,371,000 | 1,222,000 | 1,186,000 |
| Total assets | US$ in thousands | 8,147,000 | 8,140,000 | 8,031,000 | 7,825,000 | 7,588,000 | 7,201,000 | 7,049,000 | 6,993,000 | 6,592,000 | 6,390,000 | 6,462,000 | 6,333,000 | 6,295,000 | 6,583,000 | 7,194,000 | 7,177,000 | 6,005,000 | 5,922,000 | 5,992,000 | 6,014,000 |
| Operating ROA | 31.48% | 31.35% | 30.98% | 30.17% | 29.19% | 29.00% | 27.28% | 24.64% | 23.47% | 21.99% | 20.84% | 19.23% | 16.19% | 14.05% | 12.27% | 14.74% | 21.02% | 23.15% | 20.39% | 19.72% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,565,000K ÷ $8,147,000K
= 31.48%
Based on the data from the table, W.W. Grainger Inc.'s operating return on assets (operating ROA) has been on an upward trend over the last eight quarters. The company's operating ROA has increased from 24.64% in Q1 2022 to 31.48% in Q4 2023, indicating improved efficiency in generating operating profits relative to its total assets.
This consistent improvement in operating ROA suggests that W.W. Grainger Inc. has been effectively utilizing its assets to generate operating income. The steady growth in operating ROA reflects positively on the company's operational performance and management efficiency, as higher ROA values indicate that the company is generating more operating income per dollar of assets employed.
The overall increasing trend of operating ROA over the quarters demonstrates W.W. Grainger Inc.'s ability to generate healthy operating profits while efficiently managing its asset base. This improvement in operating ROA indicates that the company is becoming more effective and profitable in its core business operations.