WW Grainger Inc (GWW)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,829,000 | 1,547,000 | 1,043,000 | 695,000 | 849,000 |
| Total assets | US$ in thousands | 8,147,000 | 7,588,000 | 6,592,000 | 6,295,000 | 6,005,000 |
| ROA | 22.45% | 20.39% | 15.82% | 11.04% | 14.14% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,829,000K ÷ $8,147,000K
= 22.45%
W.W. Grainger Inc.'s return on assets (ROA) has shown a consistent upward trend over the last five years, reflecting improving operational efficiency and profitability of the company. The ROA increased from 14.14% in 2019 to 22.45% in 2023, signifying a significant improvement in the company's ability to generate profits from its assets.
The steady increase in ROA indicates that W.W. Grainger Inc. has been successful in effectively utilizing its assets to generate earnings for its shareholders. This could be attributed to efficient asset management, better cost control measures, or strategic investments that have contributed to the company's profitability.
Overall, the rising trend in ROA showcases W.W. Grainger Inc.'s ability to generate higher returns on the assets employed in its operations, indicating sound financial health and effective management practices.