W.W. Grainger (W.W. Grainger) Debt-to-EBITDA : 0.93 (As of Mar. 2024)

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What is W.W. Grainger Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

W.W. Grainger's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $572 Mil. W.W. Grainger's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $2,142 Mil. W.W. Grainger's annualized EBITDA for the quarter that ended in Mar. 2024 was $2,928 Mil. W.W. Grainger's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 0.93.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for W.W. Grainger's Debt-to-EBITDA or its related term are showing as below:

GWW' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.31 Med: 1.51 Max: 2.14
Current: 0.98

During the past 13 years, the highest Debt-to-EBITDA Ratio of W.W. Grainger was 2.14. The lowest was 0.31. And the median was 1.51.

GWW's Debt-to-EBITDA is ranked better than
73.44% of 128 companies
in the Industrial Distribution industry
Industry Median: 2.095 vs GWW: 0.98

W.W. Grainger Debt-to-EBITDA Historical Data

The historical data trend for W.W. Grainger's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

W.W. Grainger Debt-to-EBITDA Chart

W.W. Grainger Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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1.46

2.14

1.57

1.11

0.98

W.W. Grainger Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-EBITDA	Get a 7-Day Free Trial															0.92	0.95	0.93	1.12	0.93

Competitive Comparison of W.W. Grainger's Debt-to-EBITDA

For the Industrial Distribution subindustry, W.W. Grainger's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

W.W. Grainger's Debt-to-EBITDA Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, W.W. Grainger's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where W.W. Grainger's Debt-to-EBITDA falls into.

W.W. Grainger Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

W.W. Grainger's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(105	+	2647)	/	2807
	=	0.98

W.W. Grainger's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(572	+	2142)	/	2928
	=	0.93

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2024) EBITDA data.

W.W. Grainger (NYSE:GWW) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

W.W. Grainger Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of W.W. Grainger's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

W.W. Grainger (W.W. Grainger) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » W.W. Grainger Inc (NYSE:GWW) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

GWW:Germany GWW:Germany G1WW34:Brazil GWW:Austria

Address

100 Grainger Parkway, Lake Forest, IL, USA, 60045-5201

Website

https://www.grainger.com

W.W. Grainger distributes approximately 1.5 million maintenance, repair, and operating products that are sourced from over 4,500 suppliers. The company serves about 5 million customers through its online and electronic purchasing platforms, vending machines, catalog distribution, and network of over 300 global branches. In recent years, Grainger has invested in its e-commerce capabilities and is the 11th-largest e-retailer in North America.

Executives

Laurie R Thomson	officer: VP, Controller	100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Donald G Macpherson	director, officer: Chairman and CEO	100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Matt Fortin	officer: SVP & Chief HR Officer	100 GRAINGER PARKWAY, LAKE FOREST IL 60045
George S Davis	director	100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Rodney C Adkins	director	55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Katherine D. Jaspon	director	130 ROYALL STREET, C/O DUNKIN' BRANDS, INC., CANTON MA 02021
Susan Slavik Williams	director	4450 MACARTHUR BLVD., SECOND FLOOR, NEWPORT BEACH CA 92660
Stuart L Levenick	director	100 NE ADAMS STREET, PEORIA IL 61629
Neil S Novich	director	RYERSON LTULL INC, 2621 W 15TH PLACE, CHICAGO IL 60603
V Ann Hailey	director	THREE LIMITED PARKWAY, COLUMBUS OH 43230
Steven Andrew White	director	1 HORMEL PLACE, AUSTIN MN 55912
Beatriz R Perez	director	ONE COCA-COLA PLAZA, ATLANTA GA 30313
Ernest Scott Santi	director	ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Lucas E Watson	director	100 GRAINGER PARKWAY, LAKE FOREST IL 60045
Paige K Robbins	officer: Sr. VP (see Remarks)	100 GRAINGER PARKWAY, LAKE FOREST IL 60045