Grainger Case Study

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The profitability ratios show how well a company can perform in a given time period. Fastenal shows a better profit margin which means they could be marking up their products more than Grainger. The gross profit rate for Fastenal is right where they want it which is around 50% which is also the industry goal. For every dollar invested into an asset Fastenal would make 22.28% back on that asset which is a good margin for companies that hold many assets. The return on common stock holder equity is staggering for Fastenal, but according to yahoo finance, Fastenal has zero preferred stock. We think this the reason why the number is so high. Grainger does give a higher return on each share at $3.79. This amount will give investors a quick, high

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