W.W. Grainger, Inc. cash flow to debt ratio of 63.71% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

W.W. Grainger, Inc.'s free cash flow has decreased -15.22% from $1.57G last year to $1.33G, signaling decreasing performance

W.W. Grainger, Inc.'s debt to equity ratio is 0.71, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

W.W. Grainger, Inc.'s debt has decreased relative to shareholder equity from 0.95 last year to 0.71 today, signaling strengthened financials

W.W. Grainger, Inc. has a net debt to EBITDA ratio of 0.93x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

W.W. Grainger, Inc.'s interest coverage ratio of 32.30 indicates that earnings with good margin can cover interest payments on company debt

W.W. Grainger, Inc.'s profit margin has decreased (-12.80%) in the last year from 11.12% to 9.70%, signaling decreasing performance

W.W. Grainger, Inc.'s short-term assets of $5.48G exceed its short-term liabilities of $1.94G

W.W. Grainger, Inc.'s return on assets of 18.81% is higher than the 5.00% threshold, indicating efficient asset utilization

W.W. Grainger, Inc.'s return on equity of 47.84%, is higher than 15.00%, indicating good performance

W.W. Grainger, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

W.W. Grainger, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

W.W. Grainger, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

W.W. Grainger, Inc. has a free cash flow yield of 2.08%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

W.W. Grainger, Inc.'s yearly earnings has decreased -10.63% since last year from $1.91G to $1.71G, signaling decreasing performance

W.W. Grainger, Inc.'s yearly revenue has increased 4.51% since last year from $17.17G to $17.94G, signaling increasing performance

ROIC 26.40% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

W.W. Grainger, Inc.'s 3-year revenue CAGR of 5.62% is positive, indicating growing revenue over the past 3 years

W.W. Grainger, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

W.W. Grainger, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

W.W. Grainger, Inc. is overvalued relative to its fair value price of 396.58 based on Discounted Cash Flow model

W.W. Grainger, Inc. has an earnings yield of 2.78%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

W.W. Grainger, Inc. is overvalued relative to its fair value price of 354.15 based on EBITDA multiple model

W.W. Grainger, Inc. has an EV/EBITDA ratio of 22.88x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

W.W. Grainger, Inc. is overvalued relative to its fair value price of 1.05K based on Earnings Fair Value model

W.W. Grainger, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

W.W. Grainger, Inc. has a price-to-book ratio of 16.29x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

W.W. Grainger, Inc. has a price-to-sales ratio of 3.48x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue