W.W. Grainger, Inc. — Earnings Quality Grade F
GWW · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 47 days, change -0 days YoY
AR growth 4.3% vs revenue growth 4.5%
Revenue 4.5%, CFFO -4.5%. Cash follows revenue
Expense Quality
Inventory 3.8% vs COGS 5.0%. Normal
CapEx growth 26.4% is >2x revenue growth 4.5%
SG&A/Gross Profit = 64.4%. Normal
Gross margin 39.1%, change -0.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.18. Profits backed by cash
FCF $1.3B, FCF/NI = 0.78
Accruals ratio = -3.4%. Low accruals
Cash $0.6B covers only 20% of debt $2.9B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 17% of equity. Manageable
Debt/EBITDA = 1.0x. Healthy
Other assets grew 22.4% vs revenue 4.5%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 5% YoY. Normal
Manipulation Score
M-Score = -2.55 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09