MSC Industrial Direct Company Inc (MSM)
Number of days of payables
| Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.56 | 10.99 | 11.70 | 16.49 | 12.07 | |
| Number of days of payables | days | 31.58 | 33.20 | 31.21 | 22.13 | 30.25 |
September 2, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.56
= 31.58
The number of days of payables for MSC Industrial Direct Co., Inc. has exhibited some fluctuations over the past five years. In the most recent period, as of September 2, 2023, the company took approximately 34.91 days, on average, to pay its suppliers. This represents a slight improvement compared to the prior year when the number of days of payables was 37.19 days.
Looking back further, the number of days of payables was 35.61 days in August 2021, 24.83 days in August 2020, and 30.25 days in August 2019. These figures indicate some variability in the company's payment practices over the years.
The trend in the number of days of payables may suggest changes in MSC Industrial Direct Co., Inc.'s supplier relationships, cash flow management, or working capital efficiency. A longer number of days of payables may indicate that the company is taking longer to pay its suppliers, potentially benefiting from improved cash flow management, while a shorter number of days may suggest a more aggressive approach to paying off its obligations.
It is essential to analyze this ratio in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of MSC Industrial Direct Co., Inc.'s management of payables and its overall financial performance.
Peer comparison
Sep 2, 2023