WW Grainger Inc (GWW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,703,000 | 3,115,000 | 2,735,000 | 2,160,000 | 2,093,000 |
| ROE | 51.55% | 58.72% | 56.56% | 48.29% | 33.21% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,909,000K ÷ $3,703,000K
= 51.55%
WW Grainger Inc's return on equity (ROE) has experienced a significant upward trend over the past five years. The ROE increased from 33.21% as of December 31, 2020, to 51.55% as of December 31, 2024. This improvement indicates that the company has been effectively utilizing its equity to generate profits for its shareholders.
Notably, the ROE reached its peak at 58.72% as of December 31, 2023, showing a strong performance in terms of profitability and efficiency in utilizing shareholders' investments. The consistently high ROE levels demonstrate the company's ability to generate higher returns on equity over the years, reflecting positively on its operational efficiency and financial management.
Overall, the increasing trend in ROE for WW Grainger Inc signifies a strong performance in terms of generating profits relative to shareholders' equity, suggesting that the company has been successfully employing its resources to drive profitability and create value for its investors.