WW Grainger Inc (GWW)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,426,000 | 2,080,000 | 1,414,000 | 887,000 | 1,163,000 |
| Revenue | US$ in thousands | 16,387,000 | 15,137,000 | 12,937,000 | 11,598,000 | 11,413,000 |
| Pretax margin | 14.80% | 13.74% | 10.93% | 7.65% | 10.19% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,426,000K ÷ $16,387,000K
= 14.80%
The pretax margin of W.W. Grainger Inc. has shown a consistent increasing trend over the past five years, from 10.53% in 2019 to 15.17% in 2023. This indicates that the company has been effectively controlling its operating expenses relative to its revenues. The improvement in pretax margin from 2022 to 2023 is particularly noteworthy, highlighting the company's ability to enhance operational efficiency and profitability. Overall, the rising trend in pretax margin suggests that W.W. Grainger Inc. has been successful in managing costs and optimizing its earnings before taxes over the years.