WW Grainger Inc (GWW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,115,000 | 2,440,000 | 1,874,000 | 1,828,000 | 1,855,000 |
| ROE | 58.72% | 63.40% | 55.66% | 38.02% | 45.77% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,829,000K ÷ $3,115,000K
= 58.72%
W.W. Grainger Inc.'s return on equity (ROE) has shown fluctuating trends over the past five years. The ROE for the company was 58.72% in 2023, a decrease from 63.40% in 2022 and 55.66% in 2021. This decline may indicate diminishing efficiency in utilizing shareholder equity to generate profits. However, it is worth noting that the ROE has generally been at relatively high levels, demonstrating the company's ability to generate significant returns on the funds invested by shareholders.
The ROE of 58.72% in 2023 is still notably higher compared to the figures in 2020 (38.02%) and 2019 (45.77%), suggesting an improvement in profitability and efficiency in generating returns for shareholders in the most recent year.
Overall, while there have been fluctuations in W.W. Grainger Inc.'s ROE over the past five years, the company has generally maintained a high level of return on equity, indicating effective management of assets and operations to generate profits relative to shareholder investments.