MSC Industrial Direct Company Inc (MSM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,808,258 | 3,869,118 | 3,944,228 | 3,971,507 | 3,973,553 | 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 |
| Receivables | US$ in thousands | 412,122 | 419,810 | 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 |
| Receivables turnover | 9.24 | 9.22 | 9.20 | 9.59 | 9.13 | — | — | — | 5.36 | 5.22 | 5.47 | 5.71 | 5.76 | 5.57 | 5.91 | 6.34 | 6.47 | 6.02 | 6.17 | 6.24 |
August 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,808,258K ÷ $412,122K
= 9.24
The receivables turnover ratio for MSC Industrial Direct Company Inc has shown consistency in recent periods, ranging between 9.13 to 9.59. This ratio indicates how efficiently the company is able to collect outstanding receivables during a specific period. A higher turnover ratio signifies that the company is collecting its accounts receivables more quickly.
It is noteworthy that there appears to be a significant decrease in the receivables turnover ratio in some periods, such as 5.36 and 5.22, indicating a potential slowdown in the collection of receivables during those times. This could be due to various factors, such as changes in credit policies, economic conditions, or customer payment behaviors.
Overall, the consistency in the higher range of the receivables turnover ratio suggests that MSC Industrial Direct Company Inc has been effective in managing its accounts receivables and collecting payments in a timely manner. However, the company should continue to monitor and improve its receivables turnover to ensure efficient working capital management and cash flow.
Peer comparison
Aug 31, 2024