WW Grainger Inc (GWW)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,909,000 | 1,829,000 | 1,819,000 | 1,819,000 | 1,829,000 | 1,818,000 | 1,768,000 | 1,669,000 | 1,547,000 | 1,446,000 | 1,317,000 | 1,171,000 | 1,043,000 | 928,000 | 871,000 | 760,000 | 695,000 | 630,000 | 623,000 | 769,000 |
| Total assets | US$ in thousands | 8,829,000 | 9,114,000 | 8,352,000 | 8,400,000 | 8,147,000 | 8,140,000 | 8,031,000 | 7,825,000 | 7,588,000 | 7,201,000 | 7,049,000 | 6,993,000 | 6,592,000 | 6,390,000 | 6,462,000 | 6,333,000 | 6,295,000 | 6,583,000 | 7,194,000 | 7,177,000 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,909,000K ÷ $8,829,000K
= 21.62%
WW Grainger Inc's return on assets (ROA) has shown a general upward trend over the analyzed period, starting at 10.71% as of March 31, 2020, and peaking at 22.45% as of December 31, 2023.
The ROA indicates how effectively the company is generating profit from its assets. An increasing ROA suggests that Grainger has been more efficient in its asset utilization and management, generating a higher return for every dollar of assets held.
However, there were fluctuations in the ROA from quarter to quarter, indicating potential variability in Grainger's asset performance. For example, there was a notable decline in ROA from June 30, 2022 to September 30, 2022, followed by a recovery in subsequent periods.
The decline in ROA as of December 31, 2024, compared to the previous quarter, suggests a slight decrease in profitability relative to the previous quarter. It may be essential for Grainger to closely monitor its asset management strategies to sustain or improve its return on assets in future periods.