GWW W.W. GRAINGER, INC.

Overview and Growth

In fiscal 2025, W.W. GRAINGER, INC. recorded $17.94B of revenue, net income of $1.71B, and an operating cash inflow of $2.02B. The $17.94B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 4.5% above fiscal 2024 revenue of $17.17B, marking a year-over-year increase. Diluted earnings per share were $35.40, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $38.71 in fiscal 2024, the current result was 8.6% lower. Asset turnover was 2.0x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $7.01B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 39.1% of revenue, quantifying the portion retained before operating expenses were recognized. Operating income was $2.50B, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 13.9%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $1.71B, after the operating, financing, tax, and other items recognized for the period. Net margin was 9.5%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $2.43B of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 13.5% of revenue, placing earnings before tax in the context of the company’s operating scale. Income tax expense totaled $622.00M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 25.6%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $8.96B of assets against $4.82B of liabilities and $4.14B of equity, revealing how the asset base was financed. Current assets were $5.48B against $1.94B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 2.83x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $585.00M, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 30.2%, excluding receivables and other current assets. Total debt was $2.49B, establishing the amount of borrowing carried within the company’s capital structure. Against book equity, debt measured 0.6x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 27.8%, showing how much of the asset base was matched by borrowing. Liabilities represented 53.8% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 6.5% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $2.02B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The operating-cash-flow-to-net-income relationship was 1.18x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $684.00M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 33.9%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $1.33B of positive free cash flow for the period. The free-cash-flow margin was 7.4%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 14.9% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.