WW Grainger Inc (GWW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,022,000 | 2,586,000 | 2,570,000 | 2,583,000 | 2,593,000 | 2,578,000 | 2,516,000 | 2,386,000 | 2,240,000 | 2,114,000 | 1,946,000 | 1,748,000 | 1,572,000 | 1,429,000 | 1,370,000 | 1,241,000 | 1,040,000 | 949,000 | 907,000 | 1,083,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,829,000 | 3,503,000 | 3,277,000 | 3,199,000 | 3,441,000 | 3,382,000 | 3,227,000 | 3,045,000 | 2,735,000 | 2,308,000 | 2,201,000 | 2,081,000 | 2,160,000 | 1,827,000 | 1,868,000 | 1,816,000 | 2,093,000 | 2,375,000 | 2,152,000 | 1,810,000 |
| Return on total capital | 22.90% | 73.82% | 78.43% | 80.74% | 75.36% | 76.23% | 77.97% | 78.36% | 81.90% | 91.59% | 88.41% | 84.00% | 72.78% | 78.22% | 73.34% | 68.34% | 49.69% | 39.96% | 42.15% | 59.83% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,022,000K ÷ ($—K + $8,829,000K)
= 22.90%
WW Grainger Inc has shown a fluctuating trend in its return on total capital over the periods from March 31, 2020, to December 31, 2024. The ratio started at a high of 59.83% in March 2020, declined to 39.96% by September 2020, and then rose to 88.41% by June 2022. However, the ratio saw a decline in the latter part of 2022 and into 2024, with a significant drop to 22.90% by December 2024. Overall, the company has demonstrated relatively strong performance in terms of return on total capital, with several periods showing robust results above 70%. The latest figure of 22.90% in December 2024 indicates a substantial decrease from previous levels, suggesting that management may need to assess and address factors impacting the company's capital efficiency and overall profitability.