WW Grainger Inc (GWW)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 849,000 | 955,000 | 826,000 | 803,000 |
| Total stockholders’ equity | US$ in thousands | 3,115,000 | 3,090,000 | 2,935,000 | 2,735,000 | 2,440,000 | 2,308,000 | 2,201,000 | 2,081,000 | 1,874,000 | 1,827,000 | 1,868,000 | 1,816,000 | 1,828,000 | 2,131,000 | 1,929,000 | 1,810,000 | 1,855,000 | 1,871,000 | 1,923,000 | 1,971,000 |
| ROE | 58.72% | 58.83% | 60.24% | 61.02% | 63.40% | 62.65% | 59.84% | 56.27% | 55.66% | 50.79% | 46.63% | 41.85% | 38.02% | 29.56% | 32.30% | 42.49% | 45.77% | 51.04% | 42.95% | 40.74% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,829,000K ÷ $3,115,000K
= 58.72%
W.W. Grainger Inc.'s return on equity (ROE) has displayed a generally positive trend over the past eight quarters. The ROE has ranged from a high of 63.40% in Q4 2022 to a low of 56.27% in Q1 2022. Overall, the ROE has remained consistently above 55% during this period, indicating that the company is effectively utilizing its equity to generate profits for shareholders.
The slight fluctuations in ROE over the quarters suggest that W.W. Grainger Inc. has been able to maintain a strong profitability and efficient use of shareholders' equity. The consistently high ROE values demonstrate the company's ability to generate profits relative to the amount of equity invested by shareholders. This implies that the company is making efficient use of its resources and managing its operations effectively to generate returns for its shareholders.
In conclusion, the trend of W.W. Grainger Inc.'s ROE indicates a strong financial performance and efficient management of equity to deliver value to shareholders.