MSC Industrial Direct Company Inc (MSM)
Payables 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 |
| Payables | US$ in thousands | 205,933 | 205,644 | 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 |
| Payables turnover | 11.93 | 12.26 | 12.32 | 13.65 | 11.39 | 12.20 | 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 |
August 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,456,183K ÷ $205,933K
= 11.93
The payables turnover of MSC Industrial Direct Company Inc has exhibited some fluctuations over the past several quarters. The ratio typically ranged between 10.83 and 15.17 with an average around 11.88. There was a peak of 15.17 in Nov 28, 2020, and a trough of 7.66 in May 29, 2021. This indicates that on average, the company is able to turn over its payables approximately 11.88 times in a given period, which suggests that it manages its accounts payable effectively. The fluctuations in the ratio may be influenced by the company's management of supplier relationships, payment terms negotiated, and efficiency in managing working capital. It is essential for the company to monitor this ratio consistently to ensure optimal cash flow management and working capital efficiency.
Peer comparison
Aug 31, 2024