WW Grainger Inc (GWW)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,637,000 | 2,561,000 | 2,542,000 | 2,554,000 | 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 |
| Total assets | US$ in thousands | 8,829,000 | 9,114,000 | 8,352,000 | 8,400,000 | 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 |
| Operating ROA | 29.87% | 28.10% | 30.44% | 30.40% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,637,000K ÷ $8,829,000K
= 29.87%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's operating efficiency in generating profits from its assets. WW Grainger Inc's Operating ROA has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024. The ratio started at 14.74% in March 2020 and reached its peak at 31.48% by December 31, 2023, before slightly declining to 29.87% by the end of 2024.
The increasing trend in Operating ROA indicates that WW Grainger Inc has been improving its operational effectiveness in utilizing its assets to generate operating profits. This could be attributed to various factors such as effective cost management, revenue growth, better asset utilization, and operational efficiency improvements.
However, the slight decline in Operating ROA towards the end of 2024 may suggest some challenges or changes in the company's operating environment. It would be important for stakeholders to monitor this ratio along with other financial metrics to assess the company's overall financial health and performance.
Overall, the increasing trend in WW Grainger Inc's Operating ROA signals improved efficiency in generating operating profits from its assets over the analyzed period.