MSC Industrial Direct Company Inc (MSM)
Fixed asset turnover
| 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 | Aug 31, 2019 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,966,848 | 3,994,127 | 3,996,173 | 3,986,703 | 3,886,545 | 3,789,774 | 3,683,892 | 3,484,972 | 3,393,268 | 3,304,778 | 3,228,315 | 3,148,997 | 3,115,920 | 3,128,104 | 3,180,142 | 3,275,080 | 3,312,105 | 3,352,510 | 3,363,817 | 3,359,132 |
| Property, plant and equipment | US$ in thousands | 330,765 | 322,091 | 319,660 | 307,123 | 298,664 | 297,113 | 286,666 | 299,143 | 300,232 | 298,975 | 298,416 | 296,200 | 293,342 | 297,780 | 301,979 | 307,150 | 311,267 | 312,317 | 310,854 | 306,564 |
| Fixed asset turnover | 11.99 | 12.40 | 12.50 | 12.98 | 13.01 | 12.76 | 12.85 | 11.65 | 11.30 | 11.05 | 10.82 | 10.63 | 10.62 | 10.50 | 10.53 | 10.66 | 10.64 | 10.73 | 10.82 | 10.96 |
March 2, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,966,848K ÷ $330,765K
= 11.99
The fixed asset turnover ratio for MSC Industrial Direct Company Inc has shown a generally increasing trend over the period from 2019 to 2024, indicating improved efficiency in generating sales revenue from its fixed assets. The ratio ranged from 10.50 to 13.01 during this period, with the highest level seen in the most recent quarter.
A fixed asset turnover ratio above 1 indicates that the company is generating more revenue relative to its investment in fixed assets. The consistently high ratios suggest that MSC Industrial Direct Company Inc effectively utilizes its fixed assets to generate sales, demonstrating operational efficiency.
The upward trend in fixed asset turnover implies that the company has been either increasing sales generated by its fixed assets or managing its fixed assets more efficiently over time. This efficiency in asset utilization can be a positive sign for investors and creditors, as it indicates the company's ability to generate more sales with fewer fixed assets, potentially leading to higher profitability and returns on investment.
Peer comparison
Mar 2, 2024