MSC Industrial Direct Company Inc (MSM)
Inventory turnover
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,496,690 | 2,615,350 | 2,389,680 | 2,179,360 | 2,074,380 |
| Inventory | US$ in thousands | 643,904 | 726,521 | 715,625 | 624,169 | 543,106 |
| Inventory turnover | 3.88 | 3.60 | 3.34 | 3.49 | 3.82 |
August 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,496,690K ÷ $643,904K
= 3.88
The inventory turnover ratio of MSC Industrial Direct Company Inc has been showing somewhat stable performance over the past five years. The trend indicates that the company is able to convert its inventory into sales at a relatively consistent rate.
The inventory turnover ratios for the last five years were as follows: 3.88 in 2024, 3.60 in 2023, 3.34 in 2022, 3.49 in 2021, and 3.82 in 2020. The ratio has ranged from 3.34 to 3.88 during this period.
An inventory turnover ratio of 3.88 in 2024 implies that the company's inventory was sold and replaced approximately 3.88 times during the year. This indicates that MSC Industrial Direct Company Inc is managing its inventory efficiently, as a higher turnover ratio generally signifies that inventory is being sold quickly and efficiently.
Overall, the consistent inventory turnover ratios suggest that MSC Industrial Direct Company Inc has been effective in managing its inventory levels and converting them into sales over the years, reflecting a healthy operational efficiency in the company's inventory management.
Peer comparison
Aug 31, 2024