MSC Industrial Direct Company Inc (MSM)
Payables 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 |
| Payables | US$ in thousands | 205,933 | 226,299 | 217,378 | 186,330 | 125,775 |
| Payables turnover | 12.12 | 11.56 | 10.99 | 11.70 | 16.49 |
August 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,496,690K ÷ $205,933K
= 12.12
The payables turnover ratio for MSC Industrial Direct Company Inc has been relatively stable over the past five years, ranging from a low of 10.99 in September 2022 to a high of 16.49 in August 2020. The ratio indicates that, on average, the company is able to convert its accounts payables into cash or settle its payables approximately 11 to 16 times within a year.
The increasing trend from 2020 to 2021 suggests a more efficient management of payables during that period. However, the slight decrease in payables turnover in 2022 followed by a subsequent increase in 2023 and 2024 indicates some fluctuation in the efficiency of payables management.
Overall, the payables turnover ratio of MSC Industrial Direct Company Inc is at a healthy level, indicating a good ability to manage its accounts payables efficiently and optimize cash flow. Continued monitoring of this ratio will be important to ensure consistent and effective management of payables in the future.
Peer comparison
Aug 31, 2024