MSC Industrial Direct Company Inc (MSM)
Payables 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 |
| Payables | US$ in thousands | 208,111 | 188,976 | 226,299 | 209,859 | 207,553 | 212,793 | 217,378 | 199,477 | 191,436 | 177,823 | 186,330 | 195,858 | 170,487 | 143,520 | 125,775 | 126,938 | 155,304 | 142,733 | 160,110 | 146,815 |
| Payables turnover | 11.42 | 12.65 | 10.56 | 12.19 | 11.97 | 11.36 | 10.83 | 11.15 | 11.36 | 12.34 | 11.51 | 7.66 | 8.69 | 9.90 | 11.51 | 15.17 | 12.49 | 13.69 | 12.07 | 13.08 |
March 2, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,375,902K ÷ $208,111K
= 11.42
The payables turnover ratio for MSC Industrial Direct Company Inc has fluctuated over the past several quarters, ranging from a low of 7.66 to a high of 15.17. The ratio measures how efficiently the company is managing its accounts payable by analyzing how many times the company pays off its suppliers during a specific period.
A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could imply efficient cash management or good relationships with suppliers. On the other hand, a lower ratio could suggest that the company is taking longer to pay off its creditors, potentially indicating cash flow issues or strained vendor relationships.
In this case, the payables turnover ratio for MSC Industrial Direct Company Inc has generally been relatively stable, with some fluctuations. Overall, the company appears to be effectively managing its payables, with the ratio remaining within a moderate range over the analyzed periods. It would be beneficial for the company to compare its payables turnover ratio with industry benchmarks to assess its performance relative to peers and identify any areas for improvement.
Peer comparison
Mar 2, 2024