MSC Industrial Direct Company Inc (MSM)
Days of inventory on hand (DOH)
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.88 | 3.60 | 3.34 | 3.49 | 3.82 | |
| DOH | days | 94.13 | 101.39 | 109.30 | 104.54 | 95.56 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.88
= 94.13
The days of inventory on hand (DOH) for MSC Industrial Direct Company Inc has shown a fluctuating trend over the past five years. In particular, the DOH has decreased from 109.30 days in September 2022 to 94.13 days in August 2024. This indicates an improvement in managing inventory levels efficiently, as the company is holding less inventory on hand relative to its sales.
A lower DOH value suggests that the company is able to swiftly convert its inventory into sales, which can lead to lower storage costs and a more agile supply chain. This could be attributed to effective inventory management practices, such as optimizing procurement processes and implementing just-in-time inventory strategies.
Overall, the decreasing trend in DOH for MSC Industrial Direct Company Inc signifies a positive development in inventory management efficiency, potentially resulting in improved liquidity and profitability for the company. Future monitoring of this metric will be essential to ensure continued effectiveness in inventory management practices.
Peer comparison
Aug 31, 2024