W.W. GRAINGER, INC.
For the period ended Sep 30, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 31, 2025
GWW$1,440.70-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0000277135-25-000129
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0000277135-25-000148
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 87 previous paragraphs and 89 current paragraphs.
45 unchanged; 32 reworded; 12 added; 9 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
SG&A expenses of $871 million for the three months ended September 30, 2025 increased $26 million, or 3%, compared to the same period in 2024. The increase was primarily due to higher marketing expenses.
Current report
Gross profit of $281 million for the three months ended September 30, 2025 increased $48 million, or 21%, and gross profit margin of 30.1% increased 60 basis points compared to the same period in 2024. The increase was primarily driven by pricing updates at Zoro and favorable product mix at MonotaRO.
Current report
SG&A expenses of $199 million for the three months ended September 30, 2025 increased $36 million, or 22%, compared to the same period in 2024. Adjusted SG&A expenses increased $26 million, or 16%, compared to the same period in 2024. The increase was primarily due to higher marketing expenses.
Current report
Results of Operations – Nine Months Ended September 30, 2025
Current report
In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. As discussed in the "Non-GAAP Measures" section, we have adjusted the current year results to exclude one-time losses recorded in SG&A expenses of$186 million within Other and$10 million within Endless Assortment, related to the intention to exit the U.K. market. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measure, see below "Non-GAAP Measures."
Current report
SG&A expenses of $3,402 million for the nine months ended September 30, 2025 increased $324 million, or 11%, compared to the same period in 2024. Adjusted SG&A expenses of $3,206 million increased $144 million, or 5%, due to higher marketing expenses in 2025.
Current report
Operating earnings of $1,861 million for the nine months ended September 30, 2025 decreased $143 million, or 7%, compared to the same period in 2024. Adjusted operating earnings of $2,057 million increased $37 million, or 2% compared to the same period in 2024.
Current report
Net sales of $10,576 million for the nine months ended September 30, 2025 increased $198 million, or 2%, and on a daily, constant currency basis increased 3% compared to the same period in 2024. The increase was primarily due to volume.
Current report
SG&A expenses of $557 million for the nine months ended September 30, 2025 increased $65 million, or 13%, compared to the same period in 2024. Adjusted SG&A expenses of $547 million increased $55 million, or 11%, compared to the same period in 2024. The increase was primarily due to higher marketing expenses in 2025.
Current report
Operating earnings of $246 million for the nine months ended September 30, 2025 increased $56 million, or 30% compared to the same period in 2024. Adjusted operating earnings of $256 million increased $66 million, or 35%, compared to the same period in 2024.
Current report
Exiting Market in the United Kingdom
Current report
In 2025, Grainger performed an assessment of its businesses in the United Kingdom (U.K.) and made the decision to exit the U.K. market in order to concentrate efforts where it can deliver the greatest long-term impact. In September 2025, the Company committed to a plan to sell its Cromwell business in the U.K. and entered into a definitive agreement on October 6, 2025. The Company concluded that the business met the criteria as held for sale as of September 30, 2025 and recorded a pre-tax asset impairment loss of $186 million in SG&A expenses. There was no tax benefit as a result of this impairment loss. Additionally, the Company made the decision to propose the closure of Zoro U.K. in its Endless Assortment segment, subject to the outcome of the required legal, regulatory and employment consultation processes in the U.K. Expenses related to the proposed closure of $10 million were also recorded in SG&A expenses. There was no tax benefit as a result of the recognition of these expenses. The Company does not expect the exit from the U.K. market to have a material effect on its future results of operations. See Note 2, "Assets and Liabilities Held for Sale," to the Condensed Consolidated Financial Statements in Item 1 for more information on the planned sale of the Cromwell business.
Removed paragraphs (9)
Previous report
SG&A expenses of $865 million for the three months ended June 30, 2025 increased $13 million, or 2%, compared to the same period in 2024. Adjusted SG&A expenses increased $28 million, or 3%, compared to the same period in 2024. The increase was primarily due to higher marketing expenses.
Previous report
Operating earnings of $589 million for the three months ended June 30, 2025 decreased $2 million compared to the same period in 2024. Adjusted operating earnings decreased $17 million, or 3%, compared to the same period in 2024.
Previous report
SG&A expenses of $185 million for the three months ended June 30, 2025 increased $17 million, or 10%, compared to the same period in 2024. The increase was primarily due to higher marketing expenses.
Previous report
Results of Operations – Six Months Ended June 30, 2025
Previous report
SG&A expenses of $2,115 million for the six months ended June 30, 2025 increased $71 million, or 4%, and adjusted SG&A expenses increased $87 million, or 4%, driven by higher marketing expenses in 2025.
Previous report
Net sales of $6,941 million for the six months ended June 30, 2025 increased $78 million, or 1%, and on a daily, constant currency basis increased 2% compared to the same period in 2024. The increase was primarily due to volume.
Previous report
Gross profit of $522 million for the six months ended June 30, 2025 increased $73 million, or 16%, and gross profit margin of 29.7% increased 30 basis points compared to the same period in 2024.
Previous report
SG&A expenses of $358 million for the six months ended June 30, 2025 increased $29 million, or 9%, compared to the same period in 2024. The increase was primarily due to higher marketing expenses in 2025.
Previous report
Operating earnings of $164 million for the six months ended June 30, 2025 increased $44 million, or 37% compared to the same period in 2024.
Reworded paragraphs (32)
Previous wording
Historically, the Company's broad and diverse customer base and the generally nondiscretionary nature of its products have provided a degree of resilience during periods of economic contraction in the industrial MRO market. However, the ultimate impact of ongoing macroeconomic conditions, including recent, unprecedented tariff-related developments, remains uncertain and cannot be predicted at this time, but may impact the Company’s operations, financial condition, and results of operations.
Current wording
Historically, the Company's broad and diverse customer base and the generally nondiscretionary nature of its products have provided a degree of resilience during periods of economic contraction in the industrial MRO market. However, the ultimate impact of ongoing macroeconomic conditions, including recent, unprecedented tariff-related developments and shifting government budget policies and priorities at the municipal, state, and national levels, remains uncertain and cannot be predicted at this time, but may impact the Company’s operations, financial condition, and results of operations.
Previous wording
In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. For further information regarding the Company's non-GAAP measures including reconciliations to the most directly comparable GAAP measures, see below "Non-GAAP Measures."
Current wording
In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. As discussed in the "Non-GAAP Measures" section, we have adjusted the current year results to exclude one-time losses recorded in SG&A expenses of$186 million within Other and$10 million within Endless Assortment, related to the intention to exit the U.K. market. For further information regarding the Company's non-GAAP measures, including reconciliations to the most directly comparable GAAP measures, see below "Non-GAAP Measures."
Previous wording
Net sales of $4,554 million for the three months ended June 30, 2025 increased $242 million, or 6%, and on a daily, constant currency basis, net sales increased 5% compared to the same period in 2024. Both High-Touch Solutions N.A. and the Endless Assortment segment contributed to sales growth in the second quarter of 2025. For further discussion on the Company's net sales, see the Segment Analysis section below.
Current wording
Net sales of $4,657 million for the three months ended September 30, 2025 increased $269 million, or 6%, and on a daily, constant currency basis, net sales increased 5% compared to the same period in 2024. Both High-Touch Solutions N.A. and the Endless Assortment segment contributed to sales growth in the third quarter of 2025. For further discussion on the Company's net sales, see the Segment Analysis section below.
Previous wording
Gross profit of $1,755 million for the three months ended June 30, 2025 increased $61 million, or 4%, and gross profit margin of 38.5% decreased 80 basis points compared to the same period in 2024. For further discussion on the Company's gross profit, see the Segment Analysis section below.
Current wording
Gross profit of $1,798 million for the three months ended September 30, 2025 increased $78 million, or 5%, and gross profit margin of 38.6% decreased 60 basis points compared to the same period in 2024. For further discussion on the Company's gross profit, see the Segment Analysis section below.
Previous wording
Selling, general and administrative (SG&A) expenses of $1,077 million for the three months ended June 30, 2025 increased $32 million, or 3%, compared to the same period in 2024. Adjusted SG&A expenses increased $48 million, or 5%, compared to the same period in 2024. The increase was primarily due to higher marketing expenses in the second quarter of 2025.
Current wording
Selling, general and administrative (SG&A) expenses of $1,287 million for the three months ended September 30, 2025 increased $253 million, or 25%, compared to the same period in 2024. Adjusted SG&A expenses of $1,091 million increased $57 million, or 6%, compared to the same period in 2024. The increase was primarily due to higher marketing expenses in the third quarter of 2025.
Previous wording
Operating earnings of $678 million for the three months ended June 30, 2025 increased $29 million, or 5%, compared to the same period in 2024. Adjusted operating earnings increased $13 million, or 2%, compared to the same period in 2024. The increase was due to higher gross profit dollars, partially offset by increased SG&A expenses in the second quarter of 2025.
Current wording
Operating earnings of $511 million for the three months ended September 30, 2025 decreased $175 million, or 26%, compared to the same period in 2024. Adjusted operating earnings of $707 million increased $21 million, or 3%, compared to the same period in 2024. The increase was due to higher gross profit dollars, partially offset by increased SG&A expenses in the third quarter of 2025.
Previous wording
Income tax expense of $153 million for the three months ended June 30, 2025 increased $7 million compared to the same period in 2024. Adjusted income tax expense increased $3 million compared to the same period in 2024. Grainger's reported and adjusted effective tax rates were 23.2% and 22.9% for the three months ended June 30, 2025 and 2024, respectively. The increase in the effective tax rate was primarily due to lower benefits from stock compensation in the period.
Current wording
Income tax expense of $171 million for the three months ended September 30, 2025 increased $5 million compared to the same period in 2024 on a reported and adjusted basis. Grainger's effective tax rates were 34.7% and 24.8% for the three months ended September 30, 2025 and 2024, respectively. The adjusted effective tax rate was 24.8% for the three months ended September 30, 2025.
Previous wording
Diluted earnings per share was $9.97 for the three months ended June 30, 2025, an increase of 5% compared to $9.51 for the same period in 2024. Adjusted diluted earnings per share increased 2% compared to $9.76 for the same period in 2024.
Current wording
Diluted earnings per share was $6.12 for the three months ended September 30, 2025, a decrease of 38% compared to $9.87 for the same period in 2024. Adjusted diluted earnings per share increased 3% for the same period in 2024.
Previous wording
Net sales of $3,544 million for the three months ended June 30, 2025 increased $86 million, which represents a 3%, increase on a reported and daily, constant currency basis, compared to the same period in 2024. The increase was primarily due to volume.
Current wording
Net sales of $3,635 million for the three months ended September 30, 2025 increased $120 million, which represents a 3% increase on a reported and daily, constant currency basis, compared to the same period in 2024. The increase was primarily due to volume.
Previous wording
Gross profit of $1,454 million for the three months ended June 30, 2025 increased $11 million, or 1%. Gross profit margin of 41.0% decreased 70 basis points compared to the same period in 2024. The decrease was primarily driven by negative price cost spread due to timing and last-in, first-out (LIFO) inventory valuation impacts.
Current wording
Gross profit of $1,495 million for the three months ended September 30, 2025 increased $33 million, or 2%, and gross profit margin of 41.1% decreased 50 basis points compared to the same period in 2024. The decrease was primarily driven by negative price cost spread due to timing and last-in, first-out (LIFO) inventory valuation impacts.
Previous wording
Operating earnings of $1,350 million for the six months ended June 30, 2025 increased $32 million or 2%, compared to the same period in 2024. Adjusted operating earnings increased $16 million, or 1% compared to the same period in 2024.
Current wording
Operating earnings of $624 million for the three months ended September 30, 2025 increased $7 million, or 1%, compared to the same period in 2024.
Previous wording
Net sales of $929 million for the three months ended June 30, 2025 increased $153 million, or 20%, and on a daily, constant currency basis increased 16% compared to the same period in 2024. The increase was due to repeat business for the segment and enterprise customer growth at MonotaRO.
Current wording
Net sales of $935 million for the three months ended September 30, 2025 increased $144 million, or 18%, and on a daily, constant currency basis increased 15% compared to the same period in 2024. The increase was due to repeat business for the segment and enterprise customer growth at MonotaRO.
Previous wording
Operating earnings of $92 million for the three months ended June 30, 2025 increased $31 million, or 51%, compared to the same period in 2024.
Current wording
Operating earnings of $82 million for the three months ended September 30, 2025 increased $12 million, or 17%, compared to the same period in 2024. Adjusted operating earnings of $92 million increased $22 million, or 31%, compared to the same period in 2024.
Previous wording
The following table is included as an aid to understanding the changes of Grainger's total net sales, daily net sales and daily, organic constant currency net sales compared from the prior period for the six months ended June 30, 2025 and 2024 (in millions of dollars):
Current wording
The following table is included as an aid to understanding the changes of Grainger's total net sales, daily net sales and daily, constant currency net sales compared from the prior period for the nine months ended September 30, 2025 and 2024 (in millions of dollars):
Previous wording
Net sales of $8,860 million for the six months ended June 30, 2025 increased $313 million, or 4%, and on a daily, constant currency basis increased 5% compared to the same period in 2024. Both High-Touch Solutions N.A. and the Endless Assortment segments contributed to sales growth in the six months ended June 30, 2025. For further discussion on the Company's net sales, see the Segment Analysis section below.
Current wording
Net sales of $13,517 million for the nine months ended September 30, 2025 increased $582 million, or 5%, and on a daily, constant currency basis increased 5% compared to the same period in 2024. Both High-Touch Solutions N.A. and the Endless Assortment segments contributed to sales growth in the nine months ended September 30, 2025. For further discussion on the Company's net sales, see the Segment Analysis section below.
Previous wording
Gross profit of $3,465 million for the six months ended June 30, 2025 increased $103 million, or 3%, and gross profit margin of 39.1% decreased 20 basis points compared to the same period in 2024. For further discussion on the Company's gross profit, see the Segment Analysis section below.
Current wording
Gross profit of $5,263 million for the nine months ended September 30, 2025 increased $181 million, or 4%, and gross profit margin of 38.9% decreased 40 basis points compared to the same period in 2024. For further discussion on the Company's gross profit, see the Segment Analysis section below.
Previous wording
Income taxes of $310 million for the six months ended June 30, 2025 increased $6 million, compared to the same period in 2024. Adjusted income taxes increased $2 million, compared to the same period in 2024. Grainger's reported and adjusted effective tax rates were 23.5% for the six months ended June 30, 2025 and 2024.
Current wording
Income taxes of $481 million for the nine months ended September 30, 2025 increased $11 million, compared to the same period in 2024. Adjusted income taxes increased $7 million, compared to the same period in 2024. Grainger's effective tax rates were 26.6% and 24.0% for the nine months ended September 30, 2025 and 2024, respectively. The adjusted effective tax rate was 24.0% for the nine months ended September 30, 2025 and 2024.
Previous wording
Diluted earnings per share was $19.83 for the six months ended June 30, 2025, an increase of 4% compared to $19.13 for the same period in 2024. Adjusted diluted earnings per share increased 2% compared to $19.37 for the same period in 2024.
Current wording
Diluted earnings per share was $25.97 for the nine months ended September 30, 2025, a decrease of 10% compared to $29.00 for the same period in 2024. Adjusted diluted earnings per share increased 3% compared to $29.25 for the same period in 2024.
Previous wording
Gross profit of $2,893 million for the six months ended June 30, 2025 increased $27 million, or 1%, and gross profit margin of 41.7% decreased 10 basis points compared to the same period in 2024.
Current wording
Gross profit of $4,388 million for the nine months ended September 30, 2025 increased $60 million, or 1%, and gross profit margin of 41.5% decreased 20 basis points compared to the same period in 2024.
Previous wording
SG&A expenses of $1,704 million for the six months ended June 30, 2025 increased $39 million, or 2%, compared to the same period in 2024. Adjusted SG&A expenses increased $54 million, or 3%. The increase was primarily due to higher marketing and payroll and benefit expenses in 2025.
Current wording
SG&A expenses of $2,575 million for the nine months ended September 30, 2025 increased $65 million, or 3%, compared to the same period in 2024. Adjusted SG&A expenses increased $80 million, or 3%. The increase was primarily due to higher marketing and payroll and benefit expenses in 2025.
Previous wording
Operating earnings of $1,189 million for the six months ended June 30, 2025 decreased $12 million, or 1%, compared to the same period in 2024. Adjusted operating earnings deceased $27 million, or 2%, compared to the same period in 2024.
Current wording
Operating earnings of $1,813 million for the nine months ended September 30, 2025 were flat compared to the same period in 2024. Adjusted operating earnings deceased $20 million, or 1%, compared to the same period in 2024.
Previous wording
Net sales of $1,757 million for the six months ended June 30, 2025 increased $230 million, or 15%, and on a daily constant currency basis increased 16% compared to the same period in 2024. The increase was due to repeat business for the segment and enterprise customer growth at MonotaRO.
Current wording
Net sales of $2,692 million for the nine months ended September 30, 2025 increased $374 million, or 16%, and on a daily, constant currency basis increased 15% compared to the same period in 2024. The increase was due to repeat business for the segment and enterprise customer growth at MonotaRO.
Previous wording
Gross profit of $277 million for the three months ended June 30, 2025 increased $48 million, or 21%, and gross profit margin of 29.8% increased 30 basis points compared to the same period in 2024.
Current wording
Gross profit of $803 million for the nine months ended September 30, 2025 increased $121 million, or 18%, and gross profit margin of 29.8% increased 40 basis points compared to the same period in 2024.
Previous wording
Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. Non-GAAP measures exclude certain items affecting comparability that can affect the year-over-year assessment of operating results and other one-time items that do not directly reflect ongoing operating results. The Company adjusts its reported net sales when there are differences in the number of U.S. selling days relative to the prior year period and also excludes the impact on reported net sales due to changes in foreign currency exchange rate fluctuations and results of certain divested businesses. Adjusted results including adjusted SG&A, adjusted operating earnings, adjusted net earnings and adjusted diluted EPS exclude certain non-recurring items, including restructuring charges, asset impairments, gains and losses associated with business divestitures and other non-recurring, infrequent or unusual gains and losses from the Company’s most directly comparable reported U.S. generally accepted accounting principles (GAAP) results. The Company believes its non-GAAP measures provide meaningful information to assist investors in understanding financial results and assessing prospects for future performance as they provide a better baseline for analyzing the ongoing performance of its businesses by excluding items that may not be indicative of core operating results. Grainger’s non-GAAP finan cial measures should be considered in addition to, and not as a replacement for or as a superior measure to its most directly comparable GAAP measures and may not be comparable to similarly titled measures reported by other companies.
Current wording
Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. Non-GAAP measures exclude certain items affecting comparability that can affect the year-over-year assessment of operating results and other one-time items that do not directly reflect ongoing operating results. The Company adjusts its reported net sales when there are differences in the number of U.S. selling days relative to the prior year period and also excludes the impact on reported net sales due to changes in foreign currency exchange rate fluctuations and results of certain divested businesses. Adjusted results including adjusted SG&A, adjusted operating earnings, adjusted net earnings and adjusted diluted EPS exclude certain non-recurring items, including restructuring charges, asset impairments, gains and losses associated with business divestitures and other non-recurring, infrequent or unusual gains and losses from the Company’s most directly comparable reported U.S. generally accepted accounting principles (GAAP) results. The Company believes its non-GAAP measures provide meaningful information to assist investors in understanding financial results and assessing prospects for future performance as they provide a better baseline for analyzing the ongoing performance of its businesses by excluding items that may not be indicative ofcore operating results and comparability. Grainger’s non-GAAP finan cial measures should be considered in addition to, and not as a replacement for or as a superior measure to, its most directly comparable GAAP measures and may not be comparable to similarly titled measures reported by other companies.
Previous wording
The following tables provide reconciliations of reported net sales growth from the prior year period in accordance with GAAP to the Company's non-GAAP measures daily net sales and daily, constant currency net salesfor the six months ended June 30, 2025 and 2024 (in millions of dollars):
Current wording
The following tables provide reconciliations of reported net sales growth from the prior year period in accordance with GAAP to the Company's non-GAAP measures daily net sales and daily, constant currency net salesfor the nine months ended September 30, 2025 and 2024 (in millions of dollars):
Previous wording
The following tables provide reconciliations of reported SG&A expenses, operating earnings, net earnings attributable to W.W. Grainger, Inc. and diluted earnings per share determined in accordance with GAAP to the Company's non-GAAP measures adjusted SG&A expenses, adjusted operating earnings, adjusted net earnings attributable to W.W. Grainger, Inc. and adjusted diluted earnings per share for the three and six months ended June 30, 2025 and 2024 (in millions of dollars):
Current wording
The following tables provide reconciliations of reported SG&A expenses, operating earnings, net earnings attributable to W.W. Grainger, Inc. and diluted earnings per share determined in accordance with GAAP to the Company's non-GAAP measures adjusted SG&A expenses, adjusted operating earnings, adjusted net earnings attributable to W.W. Grainger, Inc. and adjusted diluted earnings per share for the three and nine months ended September 30, 2025 and 2024 (in millions of dollars):
Previous wording
As of June 30, 2025 and December 31, 2024, Grainger had cash and cash equivalents of $597 million and $1,036 million, respectively. The Company had approximately $1.8 billion in available liquidity as of June 30, 2025.
Current wording
As of September 30, 2025 and December 31, 2024, Grainger had cash and cash equivalents of $535 million and $1,036 million, respectively. The Company had approximately $1.8 billion in available liquidity as of September 30, 2025.
Previous wording
Net cash provided by operating activities was $1,023 million and $1,072 million for the six months ended June 30, 2025 and 2024, respectively. The decrease was driven by unfavorable changes in working capital primarily due to inventory inflation partially offset by timing of cash payments compared to the prior year period.
Current wording
Net cash provided by operating activities was $1,620 million and $1,683 million for the nine months ended September 30, 2025 and 2024, respectively. The decrease was driven by unfavorable changes in working capital primarily due to inventory inflation partially offset by timing of cash payments compared to the prior year period.
Previous wording
Net cash used in investing activities was $283 million and $177 million for the six months ended June 30, 2025 and 2024, respectively. The increase was due to capital expenditures driven by continued U.S. and MonotaRO supply chain investments in the first half of 2025.
Current wording
Net cash used in investing activities was $543 million and $262 million for the nine months ended September 30, 2025 and 2024, respectively. The increase was due to capital expenditures driven by continued U.S. and MonotaRO supply chain investments in the first nine months of 2025.
Previous wording
Net cash used in financing activities was $1,201 million and $763 million for the six months ended June 30, 2025 and 2024, respectively. The increase in cash used in financing activities was primarily due to the repayment of the 1.85% Senior Notes in the amount of $500 million.
Current wording
Net cash used in financing activities was $1,599 million and $615 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in cash used in financing activities was primarily due to the repayment of the 1.85% Senior Notes in the amount of $500 million.
Previous wording
Working capital as of June 30, 2025 was $3,455 million, an increase of $173 million compared to $3,282 million as of December 31, 2024. As of June 30, 2025 and December 31, 2024, the ratio of current assets to current liabilities was 2.8 and 2.9, respectively.
Current wording
Working capital as of September 30, 2025 was $3,347 million, an increase of $65 million compared to $3,282 million as of December 31, 2024. As of September 30, 2025 and December 31, 2024, the ratio of current assets to current liabilities was 2.8 and 2.9, respectively.
Previous wording
Total debt as a percent of total capitalization was 36.5% and 42.9% as of June 30, 2025 and December 31, 2024, respectively.
Current wording
Total debt as a percent of total capitalization was 37.4% and 42.9% as of September 30, 2025 and December 31, 2024, respectively.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In this section, Grainger utilizes non-GAAP measures where it believes it will assist users of its financial statements in understanding its business. For further information regarding the Company's non-GAAP measures including reconciliations to the most directly comparable GAAP measure, see below "Non-GAAP Measures."