WW Grainger Inc (GWW)

Solvency ratios

	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
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
Debt-to-capital ratio	0.42	0.42	0.44	0.45	0.48	0.50	0.51	0.53	0.56	0.56	0.56	0.57	0.57	0.53	0.63	0.65	0.51	0.51	0.52	0.51
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
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

W.W. Grainger Inc.'s solvency ratios display a consistent trend over the past eight quarters. The debt-to-assets ratio has remained relatively stable around 0.28 to 0.33, indicating that the company's total debt as a proportion of its total assets has not significantly fluctuated.

The debt-to-capital ratio has also shown a consistent pattern, ranging from 0.42 to 0.53, reflecting the percentage of the company's capital structure that is financed by debt. This ratio has been on a gradual increase, suggesting a slight increase in reliance on debt financing over time.

The debt-to-equity ratio has seen a more pronounced upward trend from 0.74 to 1.12, indicating a significant rise in the proportion of debt relative to equity in the company's capital structure. This may raise concerns about the level of financial risk and leverage within the organization.

The financial leverage ratio, which measures the extent to which the company's operations are funded by debt, has shown a similar increasing trend from 2.62 to 3.36 over the past eight quarters. This suggests that the company's financial leverage has been on the rise, indicating higher financial risk associated with the use of debt to finance its operations.

In conclusion, W.W. Grainger Inc.'s solvency ratios indicate a consistent trend of increasing debt levels and financial leverage over the observed period, potentially signaling a need for careful monitoring of the company's financial stability and risk management strategies.

Coverage ratios

	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
Interest coverage	27.58	27.44	25.92	25.12	23.82	22.70	21.61	19.36	17.78	16.34	15.48	13.10	10.96	54.41	58.47	116.44	139.11	16.56	14.55	13.90

W.W. Grainger Inc.'s interest coverage ratio has shown a consistent upward trend over the past eight quarters, indicating the company's strong ability to meet its interest obligations using its operating income. The interest coverage ratio has steadily increased from 19.36 in Q1 2022 to 27.58 in Q4 2023. This positive trend suggests that the company's earnings are more than sufficient to cover its interest expenses, reflecting a favorable financial position. The continuous improvement in the interest coverage ratio signifies a lower risk of default on debt payments and indicates sound financial management by W.W. Grainger Inc.