MSC Industrial Direct Company Inc (MSM)
Fixed asset turnover
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,820,260 | 3,986,180 | 3,683,500 | 3,228,150 | 3,174,920 |
| Property, plant and equipment | US$ in thousands | 360,255 | 319,660 | 286,666 | 298,416 | 301,979 |
| Fixed asset turnover | 10.60 | 12.47 | 12.85 | 10.82 | 10.51 |
August 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,820,260K ÷ $360,255K
= 10.60
The fixed asset turnover ratio measures the efficiency of MSC Industrial Direct Company Inc in generating sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
Over the past five years, MSC Industrial Direct Company Inc has demonstrated relatively consistent and high fixed asset turnover ratios, ranging from 10.51 to 12.85. This suggests that the company has been efficient in utilizing its fixed assets to generate sales revenue.
The highest fixed asset turnover ratio of 12.85 was observed in September 3, 2022, indicating that during that period, the company generated $12.85 in sales for every $1 of fixed assets invested. This could be a result of streamlined operations, effective asset management, and/or increased sales volumes.
Although there was a slight decrease in the fixed asset turnover ratio to 10.60 in August 31, 2024, compared to the previous year, the company still maintained a relatively strong performance in terms of utilizing its fixed assets efficiently.
Overall, the consistent and relatively high fixed asset turnover ratios indicate that MSC Industrial Direct Company Inc has been effectively managing and utilizing its fixed assets to drive sales growth and productivity over the analyzed period.
Peer comparison
Aug 31, 2024