WW Grainger Inc (GWW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 39.36% | 39.25% | 39.28% | 39.29% | 39.42% | 39.54% | 39.35% | 38.92% | 38.41% | 37.85% | 37.47% | 36.88% | 36.25% | 35.66% | 35.25% | 35.44% | 35.92% | 36.68% | 37.12% | 37.84% |
| Operating profit margin | 15.36% | 15.13% | 15.17% | 15.37% | 15.57% | 15.67% | 15.53% | 15.07% | 14.55% | 14.12% | 13.53% | 12.68% | 11.88% | 11.15% | 11.00% | 10.25% | 8.64% | 7.90% | 7.59% | 9.05% |
| Pretax margin | 15.05% | 14.78% | 14.83% | 15.00% | 15.17% | 15.26% | 15.10% | 14.62% | 14.09% | 13.68% | 13.06% | 12.21% | 11.40% | 10.66% | 10.47% | 9.66% | 8.03% | 7.33% | 7.03% | 8.56% |
| Net profit margin | 11.12% | 10.80% | 10.86% | 10.94% | 11.10% | 11.17% | 11.04% | 10.65% | 10.16% | 9.78% | 9.26% | 8.62% | 8.01% | 7.36% | 7.11% | 6.40% | 5.89% | 5.38% | 5.36% | 6.58% |
WW Grainger Inc has shown a consistent improvement in its profitability ratios over the years. The Gross profit margin has steadily increased from 37.84% in March 2020 to 39.36% in December 2024. This indicates the company's ability to efficiently manage its production costs and generate higher profits on sales.
Similarly, the Operating profit margin has shown a positive trend, starting at 9.05% in March 2020 and reaching 15.36% in December 2024. This implies that the company has been effective in controlling its operating expenses and increasing operational efficiency.
The Pretax margin has also shown a steady increase, starting at 8.56% in March 2020 and ending at 15.05% in December 2024. This indicates the company's ability to generate higher profits before taxes relative to its total revenue.
Moreover, the Net profit margin has consistently improved over time, starting at 6.58% in March 2020 and reaching 11.12% in December 2024. This suggests that the company has been successful in managing its overall expenses and enhancing its bottom line profitability.
Overall, WW Grainger Inc has demonstrated strong profitability performance, with improving margins across all key financial metrics, indicating efficient cost management and solid revenue generation capabilities.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 21.62% | 20.07% | 21.78% | 21.65% | 22.45% | 22.33% | 22.01% | 21.33% | 20.39% | 20.08% | 18.68% | 16.75% | 15.82% | 14.52% | 13.48% | 12.00% | 11.04% | 9.57% | 8.66% | 10.71% |
| Return on total capital | 22.90% | 73.82% | 78.43% | 80.74% | 75.36% | 76.23% | 77.97% | 78.36% | 81.90% | 91.59% | 88.41% | 84.00% | 72.78% | 78.22% | 73.34% | 68.34% | 49.69% | 39.96% | 42.15% | 59.83% |
| Return on equity (ROE) | 21.62% | 52.21% | 55.51% | 56.86% | 53.15% | 53.76% | 54.79% | 54.81% | 56.56% | 62.65% | 59.84% | 56.27% | 48.29% | 50.79% | 46.63% | 41.85% | 33.21% | 26.53% | 28.95% | 42.49% |
WW Grainger Inc has shown a consistent improvement in its profitability ratios over the years.
- Operating return on assets (Operating ROA) has been steadily increasing from 14.74% in March 2020 to 31.48% in December 2023, with a slight decline to 29.87% by December 2024. This indicates that the company is efficiently generating operating income relative to its total assets.
- Return on assets (ROA) has followed a similar trend, rising from 10.71% in March 2020 to 21.62% by December 2024. This ratio reflects the overall profitability of the company's assets.
- Return on total capital has shown fluctuations but generally increasing from 39.96% in September 2020 to 80.74% in March 2024, before decreasing to 22.90% by December 2024. This ratio measures the efficiency of the company in generating returns from its total capital employed.
- Return on equity (ROE) has consistently improved from 28.95% in June 2020 to 56.86% in March 2024, before dropping to 21.62% by December 2024. ROE reflects the return generated for the shareholders' equity invested in the company.
Overall, the increasing trend in these profitability ratios indicates that WW Grainger Inc has been effectively utilizing its assets and capital to generate profits for its shareholders. However, the slight decline in some ratios towards the end of the period may warrant further analysis to understand the underlying reasons and potential areas for improvement.