WW Grainger Inc (GWW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 39.64% | 39.77% | 39.58% | 39.15% | 38.64% | 38.08% | 37.71% | 37.12% | 36.48% | 35.84% | 35.44% | 35.65% | 36.14% | 36.91% | 37.35% | 38.05% | 38.50% | 38.64% | 38.86% | 38.89% |
| Operating profit margin | 15.65% | 15.76% | 15.63% | 15.15% | 14.63% | 14.21% | 13.61% | 12.76% | 11.96% | 11.21% | 11.06% | 10.32% | 8.69% | 7.95% | 7.64% | 9.10% | 11.05% | 12.09% | 10.89% | 10.60% |
| Pretax margin | 14.80% | 14.91% | 14.76% | 14.27% | 13.74% | 13.28% | 12.63% | 11.75% | 10.93% | 10.15% | 9.97% | 9.17% | 7.57% | 6.89% | 6.63% | 8.18% | 10.18% | 11.25% | 10.03% | 9.69% |
| Net profit margin | 11.16% | 11.23% | 11.10% | 10.71% | 10.22% | 9.84% | 9.32% | 8.68% | 8.06% | 7.40% | 7.15% | 6.44% | 5.93% | 5.42% | 5.39% | 6.62% | 7.43% | 8.42% | 7.36% | 7.18% |
W.W. Grainger Inc. has shown consistent improvement in profitability ratios over the quarters analyzed. The gross profit margin has steadily increased from 36.88% in Q1 2022 to 39.42% in Q4 2023, indicating efficient cost management and pricing strategies.
The operating profit margin has also shown a positive trend, rising from 12.68% in Q1 2022 to 15.57% in Q4 2023. This reflects the company's ability to control operating expenses effectively and generate higher operating income.
Similarly, the pretax margin has increased from 12.21% in Q1 2022 to 15.17% in Q4 2023, indicating improved profitability before accounting for taxes.
The net profit margin has also shown a consistent improvement, climbing from 8.62% in Q1 2022 to 11.10% in Q4 2023. This signifies that W.W. Grainger Inc. has been able to enhance its bottom line by efficiently managing expenses and generating higher net income.
Overall, the increasing profitability margins across all levels demonstrate the company's strong financial performance and efficient operational management over the analyzed periods.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 14.14% | 16.13% | 13.79% | 13.35% |
| Return on total capital | 47.67% | 47.70% | 47.75% | 47.10% | 46.89% | 45.37% | 42.64% | 38.99% | 36.52% | 33.46% | 31.75% | 29.08% | 24.16% | 20.47% | 16.77% | 20.50% | 33.22% | 35.84% | 30.18% | 28.85% |
| Return on equity (ROE) | 58.72% | 58.83% | 60.24% | 61.02% | 63.40% | 62.65% | 59.84% | 56.27% | 55.66% | 50.79% | 46.63% | 41.85% | 38.02% | 29.56% | 32.30% | 42.49% | 45.77% | 51.04% | 42.95% | 40.74% |
W.W. Grainger Inc. has demonstrated consistent improvement in its profitability ratios over the quarters analyzed.
- The Operating Return on Assets (Operating ROA) has been steadily increasing from 24.64% in Q1 2022 to 31.48% in Q4 2023, indicating that the company is generating more income from its operating activities in relation to its total assets.
- The Return on Assets (ROA) has also shown a positive trend, rising from 16.75% in Q1 2022 to 22.45% in Q4 2023, suggesting that the company is effectively utilizing its assets to generate profits.
- The Return on Total Capital has consistently improved from 38.99% in Q1 2022 to 47.37% in Q4 2023, indicating that the company is generating significant returns from both equity and debt investments.
- The Return on Equity (ROE) has shown a similar upward trajectory, increasing from 56.27% in Q1 2022 to 58.72% in Q4 2023. This signifies that the company is efficiently utilizing shareholders' equity to generate higher returns.
Overall, W.W. Grainger Inc. has showcased strong profitability performance, with increasing returns across various profitability ratios, reflecting effective management of assets and capital to drive earnings growth and enhance shareholder value.