MSC Industrial Direct Company Inc (MSM)
Number of days of payables
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.12 | 11.56 | 10.99 | 11.70 | 16.49 | |
| Number of days of payables | days | 30.11 | 31.58 | 33.20 | 31.21 | 22.13 |
August 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.12
= 30.11
Based on the data provided, the number of days of payables for MSC Industrial Direct Company Inc has fluctuated over the past five years. In the most recent fiscal year ending on August 31, 2024, the company had an average of 30.11 days to pay its suppliers, indicating that the company takes approximately one month to settle its outstanding payables.
Comparing this to previous years, we observe a trend of gradually decreasing number of days of payables. This suggests that the company has been improving its efficiency in managing its payables over time.
In particular, the number of days of payables was highest in the fiscal year ending on September 3, 2022, at 33.20 days, and lowest in the fiscal year ending on August 29, 2020, at 22.13 days.
Overall, the decreasing trend in the number of days of payables indicates that MSC Industrial Direct Company Inc has been able to better optimize its working capital management by potentially negotiating more favorable payment terms with its suppliers or improving its internal processes related to payables.
Peer comparison
Aug 31, 2024