MSC Industrial Direct Company Inc (MSM)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,375,902 | 2,389,704 | 2,388,760 | 2,558,790 | 2,483,960 | 2,416,621 | 2,354,656 | 2,224,493 | 2,175,290 | 2,193,826 | 2,144,855 | 1,500,239 | 1,481,421 | 1,420,989 | 1,447,320 | 1,925,243 | 1,940,458 | 1,954,163 | 1,931,774 | 1,921,010 |
| Inventory | US$ in thousands | 685,373 | 709,362 | 726,521 | 726,863 | 747,470 | 726,415 | 715,625 | 679,516 | 657,710 | 622,624 | 624,169 | 598,328 | 532,536 | 521,299 | 543,106 | 575,093 | 556,402 | 539,433 | 559,136 | 560,800 |
| Inventory turnover | 3.47 | 3.37 | 3.29 | 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 | 3.45 | 3.43 |
March 2, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,375,902K ÷ $685,373K
= 3.47
The inventory turnover ratio for MSC Industrial Direct Company Inc over the past few quarters has varied but generally remained within a similar range. The ratio ranged from a low of 2.51 in February 2022 to a high of 3.62 in November 2019.
A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently, which is typically a positive sign. On the other hand, a lower ratio may suggest that the company is holding onto its inventory for a longer period, which could potentially tie up capital and result in higher carrying costs.
Overall, MSC Industrial Direct Company Inc's inventory turnover ratio has shown some fluctuations but has generally been stable, indicating a moderate level of efficiency in managing its inventory levels. It is important for the company to monitor this ratio regularly to ensure optimal inventory management practices and operational efficiency.
Peer comparison
Mar 2, 2024
Mar 2, 2024