W.W. Grainger (W.W. Grainger) Interest Coverage

: 24.22 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. W.W. Grainger's Operating Income for the three months ended in Dec. 2023 was $557 Mil. W.W. Grainger's Interest Expense for the three months ended in Dec. 2023 was $-23 Mil. W.W. Grainger's interest coverage for the quarter that ended in Dec. 2023 was 24.22. The higher the ratio, the stronger the company's financial strength is.

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

GWW' s Interest Coverage Range Over the Past 10 Years
Min: 10.96 Med: 16.88 Max: 133.47
Current: 27.58

GWW's Interest Coverage is ranked better than
72.31% of 130 companies
in the Industrial Distribution industry
Industry Median: 9.15 vs GWW: 27.58

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

W.W. Grainger Interest Coverage Historical Data

The historical data trend for W.W. Grainger's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 15.97 [6] => 10.96 [7] => 17.78 [8] => 23.82 [9] => 27.58 )

W.W. Grainger Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

15.97

10.96

17.78

23.82

27.58

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
Interest Coverage																23.65	28.33	27.54	30.32	24.22

Competitive Comparison

For the Industrial Distribution subindustry, W.W. Grainger's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where W.W. Grainger's Interest Coverage falls into.

W.W. Grainger Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2023, W.W. Grainger's Interest Expense was $-93 Mil. Its Operating Income was $2,565 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,647 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2565	/	-93
	=	27.58

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

Here, for the three months ended in Dec. 2023, W.W. Grainger's Interest Expense was $-23 Mil. Its Operating Income was $557 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,647 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	557	/	-23
	=	24.22

The higher the ratio, the stronger the company's Financial Strength is.

W.W. Grainger (NYSE:GWW) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

W.W. Grainger Interest Coverage Related Terms

Thank you for viewing the detailed overview of W.W. Grainger's Interest Coverage 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 » Interest Coverage

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