WW Grainger Inc (GWW)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,266,000 | 2,260,000 | 2,275,000 | 2,278,000 | 2,284,000 | 2,294,000 | 2,309,000 | 2,338,000 | 2,362,000 | 2,372,000 | 2,375,000 | 2,373,000 | 2,389,000 | 2,388,000 | 3,301,000 | 3,303,000 | 1,914,000 | 1,918,000 | 2,080,000 | 2,077,000 |
| Total assets | US$ in thousands | 8,147,000 | 8,140,000 | 8,031,000 | 7,825,000 | 7,588,000 | 7,201,000 | 7,049,000 | 6,993,000 | 6,592,000 | 6,390,000 | 6,462,000 | 6,333,000 | 6,295,000 | 6,583,000 | 7,194,000 | 7,177,000 | 6,005,000 | 5,922,000 | 5,992,000 | 6,014,000 |
| Debt-to-assets ratio | 0.28 | 0.28 | 0.28 | 0.29 | 0.30 | 0.32 | 0.33 | 0.33 | 0.36 | 0.37 | 0.37 | 0.37 | 0.38 | 0.36 | 0.46 | 0.46 | 0.32 | 0.32 | 0.35 | 0.35 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,266,000K ÷ $8,147,000K
= 0.28
The debt-to-assets ratio of W.W. Grainger Inc. has exhibited a decreasing trend over the past eight quarters, indicating the company's ability to effectively manage its debt levels in relation to its total assets. The ratio has steadily declined from 0.33 in Q1 2022 to 0.28 in Q4 2023. This suggests that the company has been successful in reducing its debt relative to its total assets over this time period.
A lower debt-to-assets ratio is generally viewed positively by investors and creditors, as it signifies lower financial risk and better financial health. W.W. Grainger Inc.'s consistent improvement in this ratio demonstrates prudent financial management and a stronger balance sheet position. By maintaining a lower level of debt in proportion to its assets, the company may have enhanced its ability to meet its financial obligations and pursue strategic growth opportunities in a more sustainable manner.
Overall, the decreasing trend in W.W. Grainger Inc.'s debt-to-assets ratio reflects positively on the company's financial strength and management of debt levels, potentially enhancing investor confidence in its long-term stability and solvency. However, continued monitoring of this ratio is advisable to ensure that the company maintains a healthy balance between debt and assets in the future.