WW Grainger Inc (GWW)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,653,000 | 2,565,000 | 2,204,000 | 1,552,000 | 1,040,000 |
| Interest expense | US$ in thousands | 77,000 | 93,000 | 93,000 | 87,000 | 93,000 |
| Interest coverage | 34.45 | 27.58 | 23.70 | 17.84 | 11.18 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,653,000K ÷ $77,000K
= 34.45
The interest coverage ratio of WW Grainger Inc has shown a steady and positive trend over the years, indicating the company's ability to comfortably meet its interest obligations. Starting at 11.18 in December 2020, the ratio has consistently increased to reach 34.45 by December 2024. This uptrend demonstrates the company's strengthening financial position and its capacity to generate sufficient earnings to cover its interest expenses multiple times over. The rising interest coverage ratio suggests improved financial health and reduced risk of default on debt payments for WW Grainger Inc.