WW Grainger Inc (GWW)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,909,000 | 1,829,000 | 1,547,000 | 1,043,000 | 695,000 |
| Total assets | US$ in thousands | 8,829,000 | 8,147,000 | 7,588,000 | 6,592,000 | 6,295,000 |
| ROA | 21.62% | 22.45% | 20.39% | 15.82% | 11.04% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,909,000K ÷ $8,829,000K
= 21.62%
Based on the data provided, WW Grainger Inc has shown a positive trend in its return on assets (ROA) over the past five years. ROA has steadily increased from 11.04% as of December 31, 2020, to 21.62% as of December 31, 2024. This indicates that the company has been effectively utilizing its assets to generate profits over the years.
The upward trend in ROA suggests that WW Grainger Inc has been able to improve its operational efficiency and effectiveness in generating profits relative to its asset base. Higher ROA values demonstrate that the company is generating more income per dollar of assets invested, which is a favorable indicator of financial health and performance.
The significant increase in ROA from 2020 to 2024 indicates that the management of WW Grainger Inc has been successful in optimizing the utilization of its assets to drive profitability and create value for shareholders. Investors and stakeholders may view the improving ROA as a positive signal of the company's ability to generate returns on its investments and manage its assets efficiently.