MSC Industrial Direct Company Inc (MSM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.47 | 3.37 | 3.29 | 3.52 | 3.32 | 3.33 | 3.29 | 3.27 | 3.31 | 3.52 | 3.44 | 2.51 | 2.78 | 2.73 | 2.66 | 3.35 | 3.49 | 3.62 | 3.45 | 3.43 |
| Receivables turnover | 9.25 | 9.64 | 9.18 | — | — | — | 5.36 | 5.22 | 5.47 | 5.71 | 5.76 | 5.57 | 5.91 | 6.34 | 6.47 | 6.02 | 6.17 | 6.24 | 6.22 | — |
| 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 |
| Working capital turnover | 6.25 | 6.21 | 5.98 | 6.30 | 5.81 | 4.56 | 4.51 | 4.11 | 4.14 | 4.34 | 4.29 | 5.84 | 4.93 | 4.93 | 3.84 | 3.40 | 6.39 | 4.37 | 4.47 | 4.60 |
The activity ratios for MSC Industrial Direct Company Inc provide insights into the efficiency of the company's operations.
1. Inventory turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period. MSC's inventory turnover has been relatively stable, ranging between 3.27 and 3.52 over the past few quarters. This indicates that the company is efficiently managing its inventory levels.
2. Receivables turnover: The receivables turnover ratio reflects how effectively a company is collecting its accounts receivable. MSC's receivables turnover has shown some fluctuation, with a peak of 9.64 and a low of 5.22. This indicates variability in the company's collection efforts.
3. Payables turnover: The payables turnover ratio measures how efficiently a company pays its suppliers. MSC's payables turnover has also varied, ranging from 7.66 to 15.17. A higher turnover ratio suggests that the company is paying its suppliers more quickly.
4. Working capital turnover: The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. MSC's working capital turnover has fluctuated, with a peak of 6.39 and a low of 3.40. This indicates changes in the company's efficiency in utilizing its working capital.
Overall, the activity ratios suggest that MSC Industrial Direct Company Inc has been effectively managing its inventory and working capital, but there have been fluctuations in receivables turnover and payables turnover. Monitoring and analyzing these ratios over time can help identify trends and potential areas for improvement in the company's operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.29 | 108.35 | 111.01 | 103.68 | 109.84 | 109.72 | 110.93 | 111.50 | 110.36 | 103.59 | 106.22 | 145.57 | 131.21 | 133.90 | 136.97 | 109.03 | 104.66 | 100.76 | 105.65 | 106.55 |
| Days of sales outstanding (DSO) | days | 39.45 | 37.86 | 39.77 | — | — | — | 68.13 | 69.86 | 66.68 | 63.91 | 63.36 | 65.48 | 61.76 | 57.61 | 56.44 | 60.68 | 59.17 | 58.45 | 58.71 | — |
| Number of days of payables | days | 31.97 | 28.86 | 34.58 | 29.94 | 30.50 | 32.14 | 33.70 | 32.73 | 32.12 | 29.59 | 31.71 | 47.65 | 42.01 | 36.87 | 31.72 | 24.07 | 29.21 | 26.66 | 30.25 | 27.90 |
The Days of Inventory on Hand (DOH) for MSC Industrial Direct Company Inc has shown some fluctuation over the periods analyzed, ranging from 100 to around 140 days. The decreasing trend in DOH from November 2021 to August 2022 indicates that the company has been managing its inventory efficiently. However, a slight increase in DOH was observed in the most recent period, which may suggest a need for improved inventory management.
The Days of Sales Outstanding (DSO) have also varied over time, with values ranging from around 35 to 70 days. A lower DSO indicates that the company is collecting its accounts receivable more quickly. The company has generally shown a decreasing trend in DSO, which is a positive sign of effective accounts receivable management. The missing data for June 3, 2023, and earlier may limit the analysis of the company's recent performance in this aspect.
The Number of Days of Payables reflects the company's ability to manage its accounts payable, with values ranging from around 25 to 50 days. A higher number of days of payables indicates that the company takes longer to pay its suppliers. MSC Industrial Direct Company Inc has shown a somewhat stable trend in this ratio, with occasional fluctuations. The decreasing pattern in number of days of payables from November 2021 to August 2022 could suggest improved cash flow management.
Overall, analyzing these activity ratios together provides insights into MSC Industrial Direct Company Inc's efficiency in managing its inventory, accounts receivable, and accounts payable. Further investigation into the underlying reasons for the fluctuations in these ratios could help identify areas for improvement in the company's working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 11.99 | 12.40 | 12.50 | 12.98 | 13.01 | 12.76 | 12.85 | 11.65 | 11.30 | 11.05 | 10.82 | 10.63 | 10.62 | 10.50 | 10.53 | 10.66 | 10.64 | 10.73 | 10.82 | 10.96 |
| Total asset turnover | 1.59 | 1.60 | 1.57 | 1.58 | 1.54 | 1.38 | 1.35 | 1.33 | 1.32 | 1.32 | 1.31 | 1.30 | 1.35 | 1.37 | 1.33 | 1.21 | 1.39 | 1.43 | 1.46 | 1.45 |
The fixed asset turnover ratio for MSC Industrial Direct Company Inc has been relatively stable over the past few quarters, ranging from 10.50 to 13.01. This indicates that the company is generating sales efficiently from its investment in fixed assets such as property, plant, and equipment.
On the other hand, the total asset turnover ratio has shown some fluctuations but has generally been within the range of 1.21 to 1.60. This ratio reflects how efficiently the company is generating sales from all its assets, including fixed and current assets. A higher ratio suggests better asset utilization.
Overall, both ratios indicate that MSC Industrial Direct Company Inc has been effectively utilizing its assets to generate sales. The stability of the fixed asset turnover and the fluctuation in the total asset turnover suggest that the company may have been optimizing its asset mix to improve overall efficiency in generating revenue.