MSC Industrial Direct Company Inc (MSM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,966,848 | 3,994,127 | 3,996,173 | 3,986,703 | 3,886,545 | 3,789,774 | 3,683,892 | 3,484,972 | 3,393,268 | 3,304,778 | 3,228,315 | 3,148,997 | 3,115,920 | 3,128,104 | 3,180,142 | 3,275,080 | 3,312,105 | 3,352,510 | 3,363,817 | 3,359,132 |
| Receivables | US$ in thousands | 428,699 | 414,280 | 435,421 | — | — | — | 687,608 | 667,019 | 619,913 | 578,654 | 560,373 | 564,963 | 527,233 | 493,693 | 491,743 | 544,446 | 536,902 | 536,878 | 541,091 | — |
| 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 | — |
March 2, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,966,848K ÷ $428,699K
= 9.25
The receivables turnover for MSC Industrial Direct Company Inc has shown fluctuations over the past few periods, ranging from 5.22 to 9.64. The receivables turnover measures the number of times a company collects its accounts receivable during a period. A higher turnover indicates that the company collects its outstanding receivables more frequently, which is generally positive as it implies efficient management of receivables.
The trend in the receivables turnover for MSC Industrial Direct Company Inc indicates that the company has been able to effectively manage its receivables during most periods, with a few exceptions of relatively lower turnovers. The company's ability to maintain a consistent turnover ratio above 5 suggests efficient credit policies and effective collection efforts. However, the fluctuation in turnover ratios may warrant further investigation into the company's credit policies, collection procedures, and customer base to ensure continued efficiency in managing receivables.
Peer comparison
Mar 2, 2024