MSC Industrial Direct Company Inc (MSM)

Short-term

Turnover ratios

Inventory turnover measures how efficiently a company is managing its inventory by indicating how many times a company sells and replaces its inventory during a specific period. MSC Industrial Direct Company Inc's inventory turnover has been relatively stable, ranging from 3.27 to 3.81 over the past several quarters.

Receivables turnover ratio reflects how effective a company is at collecting cash from its customers on credit sales. MSC's receivables turnover has been quite consistent, with values fluctuating around 5.36 to 9.59.

Payables turnover ratio highlights how quickly a company is paying its suppliers. MSC's payables turnover has shown variations between 7.66 and 15.17, indicating changes in the company's payment practices.

Working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate revenue. MSC's working capital turnover has fluctuated from 3.40 to 6.54, indicating changes in the efficiency of the company's working capital management.

Overall, MSC Industrial Direct Company Inc has been relatively stable in its activity ratios, but there have been fluctuations indicating changes in its inventory management, receivables collection, payment practices, and working capital utilization over the analyzed periods.

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Average number of days

Days of Inventory on Hand (DOH) for MSC Industrial Direct Company Inc have shown a slight decrease over the past 5 quarters, indicating that the company is managing its inventory more efficiently. The DOH has ranged from 95.69 days to 145.57 days, with the most recent figure standing at 95.69 days as of August 31, 2024.

Days of Sales Outstanding (DSO) have varied slightly over the same period, with figures fluctuating between 38.07 days and 69.86 days. The latest DSO is 39.50 days as of August 31, 2024, which indicates that the company is collecting its receivables in a reasonable amount of time.

The Number of Days of Payables has also seen fluctuations, ranging from 24.07 days to 47.65 days. As of August 31, 2024, the company had 30.60 days of payables outstanding. This indicates that MSC Industrial Direct is managing its payable days effectively.

Overall, the activity ratios suggest that MSC Industrial Direct Company Inc has been improving its inventory management and maintaining a reasonable collection period for receivables. Efficient management of payables is also evident, reflecting good working capital management practices within the company.

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Long-term

The fixed asset turnover ratio for MSC Industrial Direct Company Inc has been relatively stable over the past few years, ranging between 10.50 to 13.01. This indicates that the company generates revenue efficiently from its investment in fixed assets. A high fixed asset turnover ratio suggests effective utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also been steady, fluctuating between 1.32 to 1.59. This ratio reflects the company's ability to generate sales in relation to its total assets. A higher total asset turnover ratio implies that the company is efficient in generating sales from all its assets.

Overall, both the fixed asset turnover and total asset turnover ratios demonstrate that MSC Industrial Direct Company Inc has been effectively managing its assets to generate sales efficiently over the analyzed period. The company's ability to turn its fixed and total assets into revenue indicates operational efficiency and effective asset utilization.