WW Grainger Inc (GWW)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,584,000 | 2,500,000 | 2,146,000 | 1,485,000 | 947,000 |
| Revenue | US$ in thousands | 17,168,000 | 16,478,000 | 15,228,000 | 13,022,000 | 11,797,000 |
| Pretax margin | 15.05% | 15.17% | 14.09% | 11.40% | 8.03% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,584,000K ÷ $17,168,000K
= 15.05%
WW Grainger Inc's pretax margin has shown a consistent upward trend over the past five years, increasing from 8.03% in December 2020 to 15.05% in December 2024. This indicates that the company has been able to effectively control its operating expenses and generate higher profits before accounting for taxes. The rising pretax margin suggests improving efficiency and cost management within the company. As a key measure of profitability, the pretax margin reflects Grainger's ability to generate earnings from its operations relative to its revenue, which bodes well for the company's financial health and overall performance.