WW Grainger Inc (GWW)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,829,000 | 9,114,000 | 8,352,000 | 8,400,000 | 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 |
| 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 |
| Financial leverage ratio | 1.00 | 2.60 | 2.55 | 2.63 | 2.37 | 2.41 | 2.49 | 2.57 | 2.77 | 3.12 | 3.20 | 3.36 | 3.05 | 3.50 | 3.46 | 3.49 | 3.01 | 2.77 | 3.34 | 3.97 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,829,000K ÷ $8,829,000K
= 1.00
Based on the data provided, the financial leverage ratio of WW Grainger Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The financial leverage ratio measures the company's use of debt to finance its operations and assets. A higher financial leverage ratio indicates higher dependence on debt financing.
WW Grainger Inc's financial leverage ratio started at 3.97 on March 31, 2020, which decreased to 2.77 on September 30, 2020. The ratio then increased to 3.49 on March 31, 2021, gradually fluctuating around the 3.00 mark until December 31, 2022, where it decreased to 2.77. Subsequently, the financial leverage ratio continued to decrease reaching its lowest point of 1.00 on December 31, 2024.
The decreasing trend in the financial leverage ratio from 2022 to 2024 indicates that WW Grainger Inc may have reduced its reliance on debt to finance its operations and assets, potentially indicating a more conservative approach to capital structure and financial risk. This could be seen as a positive development from a risk management perspective, as lower financial leverage ratios generally imply lower financial risk and greater financial stability.