W.W. Grainger (W.W. Grainger) Gross Margin %

: 39.10% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. W.W. Grainger's Gross Profit for the three months ended in Dec. 2023 was $1,563 Mil. W.W. Grainger's Revenue for the three months ended in Dec. 2023 was $3,997 Mil. Therefore, W.W. Grainger's Gross Margin % for the quarter that ended in Dec. 2023 was 39.10%.

The historical rank and industry rank for W.W. Grainger's Gross Margin % or its related term are showing as below:

GWW' s Gross Margin % Range Over the Past 10 Years
Min: 35.92 Med: 39.03 Max: 43.29
Current: 39.42

During the past 13 years, the highest Gross Margin % of W.W. Grainger was 43.29%. The lowest was 35.92%. And the median was 39.03%.

GWW's Gross Margin % is ranked better than
84.62% of 143 companies
in the Industrial Distribution industry
Industry Median: 23.42 vs GWW: 39.42

W.W. Grainger had a gross margin of 39.10% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for W.W. Grainger was 0.30% per year.

W.W. Grainger Gross Margin % Historical Data

The historical data trend for W.W. Grainger's Gross Margin % 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.

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W.W. Grainger Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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38.28

35.92

36.25

38.41

39.42

W.W. Grainger Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															39.61	39.94	39.31	39.33	39.10

Competitive Comparison

For the Industrial Distribution subindustry, W.W. Grainger's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Industrial Distribution industry and Industrials sector, W.W. Grainger's Gross Margin % distribution charts can be found below:

* The bar in red indicates where W.W. Grainger's Gross Margin % falls into.

W.W. Grainger Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

W.W. Grainger's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	6496	/	16478
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(16478 - 9982)	/	16478
	=	39.42 %

W.W. Grainger's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1563	/	3997
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3997 - 2434)	/	3997
	=	39.10 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

W.W. Grainger (NYSE:GWW) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

W.W. Grainger had a gross margin of 39.10% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

W.W. Grainger Gross Margin % Related Terms

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

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » W.W. Grainger Inc (NYSE:GWW) » Definitions » Gross Margin %

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