MSC Industrial Direct Company Inc (MSM)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,456,183 | 2,521,158 | 2,564,937 | 2,578,739 | 2,577,795 | 2,560,635 | 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 |
| Inventory | US$ in thousands | 643,904 | 665,638 | 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 |
| 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 |
August 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,456,183K ÷ $643,904K
= 3.81
Inventory turnover for MSC Industrial Direct Company Inc has shown some fluctuations over the past few years, ranging from a low of 2.51 to a high of 3.81. The company's inventory turnover ratio has generally been within the range of 3.2 to 3.8, indicating that on average, the company sells and replenishes its inventory multiple times throughout the year.
There was a notable decrease in inventory turnover from May 2021 to August 2021, dropping from 3.49 to 3.44, but it later fell significantly to 2.51 by February 2022. However, the company was able to improve its inventory management as the ratio gradually increased thereafter.
The highest inventory turnover ratio in the provided data was recorded in August 2024 at 3.81, indicating that the company was able to sell its inventory faster relative to the amount of inventory held during that period. This may suggest effective inventory management practices by the company, leading to quicker turnover of its goods.
Overall, while there have been fluctuations in the inventory turnover ratio for MSC Industrial Direct Company Inc, the company seems to have maintained a relatively healthy turnover rate, reflecting its ability to efficiently manage its inventory levels and meet customer demand. Further analysis of industry benchmarks and trends over time could provide additional insights into the company's inventory management performance.
Peer comparison
Aug 31, 2024
Aug 31, 2024