MSC Industrial Direct Company Inc (MSM)
Total asset turnover
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,820,260 | 3,986,180 | 3,683,500 | 3,228,150 | 3,174,920 |
| Total assets | US$ in thousands | 2,462,310 | 2,544,130 | 2,729,410 | 2,462,120 | 2,382,430 |
| Total asset turnover | 1.55 | 1.57 | 1.35 | 1.31 | 1.33 |
August 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,820,260K ÷ $2,462,310K
= 1.55
The total asset turnover of MSC Industrial Direct Company Inc has shown variability over the past five years, ranging from 1.31 to 1.57. Total asset turnover measures the company's ability to generate sales from its assets, with a higher ratio indicating more efficient asset utilization.
The trend in the total asset turnover ratio indicates an improvement from 1.33 in 2020 to 1.55 in 2024. This suggests that the company has been able to generate more revenue relative to its total assets over the years, reflecting improved efficiency in asset management.
However, it is worth noting that there was a slight dip in the ratio in 2022 compared to the previous years. This might indicate a temporary decrease in the company's ability to efficiently utilize its assets to generate sales during that period.
Overall, the total asset turnover ratio of MSC Industrial Direct Company Inc has shown positive movement over the years, signaling enhanced asset efficiency and effectiveness in generating sales.
Peer comparison
Aug 31, 2024