MSC Industrial Direct Company Inc (MSM)
Days of inventory on hand (DOH)
| Aug 31, 2024 | Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Mar 4, 2023 | Dec 3, 2022 | Sep 3, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.81 | 3.79 | 3.74 | 3.64 | 3.55 | 3.52 | 3.32 | 3.33 | 3.29 | 3.27 | 3.31 | 3.52 | 3.44 | 2.51 | 2.78 | 2.73 | 2.66 | 3.35 | 3.49 | 3.62 | |
| DOH | days | 95.69 | 96.37 | 97.53 | 100.40 | 102.87 | 103.61 | 109.84 | 109.72 | 110.93 | 111.50 | 110.36 | 103.59 | 106.22 | 145.57 | 131.21 | 133.90 | 136.97 | 109.03 | 104.66 | 100.76 |
August 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.81
= 95.69
The days of inventory on hand (DOH) for MSC Industrial Direct Company Inc over the past several fiscal periods shows fluctuations in inventory management efficiency.
The trend indicates that there was a gradual increase in DOH from November 2019 to March 2020, followed by a decline in DOH until May 2021. However, there was a significant spike in DOH in the first quarter of fiscal year 2022, peaking at 145.57 days in August 2022. This suggests that the company may have experienced challenges in controlling and managing its inventory levels during that period.
Subsequently, there was a positive trend with a decrease in DOH from August 2022 to December 2023, indicating an improvement in inventory turnover efficiency. However, there was a slight increase in DOH in the most recent fiscal quarter, possibly necessitating a closer examination of inventory management practices to optimize working capital and reduce carrying costs.
Overall, the company's DOH fluctuates, reflecting changes in inventory holding periods and possibly shifts in demand patterns, supply chain disruptions, or pricing strategies. Continuous monitoring and adjustment of inventory levels are important for maintaining an optimal balance between inventory investment and sales performance.
Peer comparison
Aug 31, 2024