WW Grainger Inc (GWW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.38 | 2.62 | 2.77 | 3.05 | 3.01 |
WW Grainger Inc has consistently maintained a strong solvency position based on the information provided. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 over the five-year period from December 31, 2020, to December 31, 2024. This indicates that the company has no long-term debt on its balance sheet in relation to its assets, capital, or equity.
Furthermore, the financial leverage ratio has shown a decreasing trend from 3.01 in 2020 to 2.38 in 2024. This suggests that the company has been reducing its reliance on debt financing to support its operations and growth. A lower financial leverage ratio indicates a lower level of financial risk and a stronger ability to meet its financial obligations.
Overall, the solvency ratios of WW Grainger Inc reflect a prudent and conservative financial management strategy, with a minimal level of debt and decreasing financial leverage over the years. This bodes well for the company's ability to weather economic downturns and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 34.45 | 27.58 | 23.70 | 17.84 | 11.18 |
WW Grainger Inc's interest coverage has shown a consistent upward trend over the past five years. The ratio has increased from 11.18 in 2020 to 34.45 in 2024. This indicates that the company's ability to cover its interest expenses with its operating income has steadily improved over the years.
The significant rise in the interest coverage ratio reflects that WW Grainger Inc has generated more earnings relative to its interest obligations, demonstrating a strong financial position. A higher interest coverage ratio is indicative of lower risk of financial distress, as the company has sufficient earnings to meet its interest payments comfortably.
Overall, the increasing trend in WW Grainger Inc's interest coverage ratio suggests that the company has been effectively managing its debt and interest expenses while maintaining a healthy level of profitability. This positive trajectory bodes well for the company's financial health and ability to service its debt obligations in the future.