W.W. Grainger (W.W. Grainger) EBIT

: $2,593 Mil (TTM As of Dec. 2023)

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W.W. Grainger's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $564 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $2,593 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. W.W. Grainger's annualized ROC % for the quarter that ended in Dec. 2023 was 27.97%. W.W. Grainger's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 45.34%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. W.W. Grainger's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 5.28%.

W.W. Grainger EBIT Historical Data

The historical data trend for W.W. Grainger's EBIT 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 Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

1,288.00

1,040.00

1,572.00

2,239.00

2,593.00

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
EBIT																548.00	686.00	669.00	674.00	564.00

Competitive Comparison

For the Industrial Distribution subindustry, W.W. Grainger's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT Distribution

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

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

W.W. Grainger EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,593 Mil.

W.W. Grainger (NYSE:GWW) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

W.W. Grainger's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2228 * ( 1 - 23.84% )	/	( (6045	+	6088)	/ 2 )
=	1696.8448	/	6066.5
=	27.97 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8140	-	1494	-	( 601	-	max(0, 1898	-	5412	+	601	))
=	6045

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	8147	-	1399	-	( 660	-	max(0, 1831	-	5274	+	660	))
=	6088

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

W.W. Grainger's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2256	/	( ( (1956 + max(3020, 0))	+	(2087 + max(2888, 0)) )	/	2 )
=	2256	/	( ( 4976	+	4975 )	/	2 )
=	2256	/	4975.5
=	45.34 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2444	+	2196	+	171)	-	(1494	+	0	+	297)
=	3020

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2192	+	2266	+	156)	-	(1399	+	0	+	327)
=	2888

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

W.W. Grainger's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	2593	/	49097.249
	=	5.28 %

W.W. Grainger EBIT 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 » EBIT

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