WW Grainger Inc (GWW)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 2.62 | 2.63 | 2.74 | 2.86 | 3.11 | 3.12 | 3.20 | 3.36 | 3.52 | 3.50 | 3.46 | 3.49 | 3.44 | 3.09 | 3.73 | 3.97 | 3.24 | 3.17 | 3.12 | 3.05 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,147,000K ÷ $3,115,000K
= 2.62
The financial leverage ratio of W.W. Grainger Inc. has been gradually decreasing from 3.36 in Q1 2022 to 2.86 in Q1 2023. This indicates that the company has been reducing its reliance on debt to finance its operations over the past few quarters. A lower financial leverage ratio suggests a healthier financial position as the company is less exposed to financial risk associated with high levels of debt. Overall, the trend in the financial leverage ratio reflects a positive shift towards a more stable and sustainable capital structure for W.W. Grainger Inc.