WW Grainger Inc (GWW)
Debt-to-equity 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 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 |
| Debt-to-equity ratio | 0.73 | 0.73 | 0.78 | 0.83 | 0.94 | 0.99 | 1.05 | 1.12 | 1.26 | 1.30 | 1.27 | 1.31 | 1.31 | 1.12 | 1.71 | 1.82 | 1.03 | 1.03 | 1.08 | 1.05 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,266,000K ÷ $3,115,000K
= 0.73
The debt-to-equity ratio of W.W. Grainger Inc. has been showing a decreasing trend over the quarters, from 1.12 in Q1 2022 to 0.74 in Q4 2023. This indicates that the company is relying less on debt financing relative to equity financing, which can be seen as a positive sign of financial health and stability. A lower debt-to-equity ratio suggests that the company has a stronger equity position to support its operations and growth. Overall, the decreasing trend in the debt-to-equity ratio for W.W. Grainger Inc. indicates a more balanced capital structure and reduced financial risk.