MSC Industrial Direct Company Inc (MSM)
Total asset turnover
| Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,986,180 | 3,683,500 | 3,228,150 | 3,174,920 | 3,363,820 |
| Total assets | US$ in thousands | 2,544,130 | 2,729,410 | 2,462,120 | 2,382,430 | 2,311,240 |
| Total asset turnover | 1.57 | 1.35 | 1.31 | 1.33 | 1.46 |
September 2, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,986,180K ÷ $2,544,130K
= 1.57
The total asset turnover ratio measures a company's ability to generate sales in relation to its total assets. A higher total asset turnover ratio indicates that the company is utilizing its assets more efficiently to generate sales.
Analyzing the total asset turnover ratio of MSC Industrial Direct Co., Inc. over the past five years, we observe the following trend:
- In the fiscal year ending September 2, 2023, the total asset turnover ratio stood at 1.58, reflecting a significant improvement compared to the previous year.
- In the fiscal year ending September 3, 2022, the total asset turnover ratio was 1.35, showing a moderate increase in efficiency from the previous fiscal year.
- The fiscal year ending August 28, 2021, saw a total asset turnover ratio of 1.32, indicating a slight decrease in asset utilization compared to the previous year.
- For the fiscal year ending August 29, 2020, the total asset turnover ratio stood at 1.34, suggesting a relatively stable performance in utilizing assets to generate sales.
- In the fiscal year ending August 31, 2019, the total asset turnover ratio was 1.46, reflecting a lower efficiency in utilizing assets to generate sales compared to the subsequent years.
Overall, the trend indicates that MSC Industrial Direct Co., Inc. has shown fluctuations in its total asset turnover ratio over the past five years. The significant increase in the most recent year suggests improved efficiency in generating sales in relation to its total assets, which can be a positive indicator of operational effectiveness and asset utilization. However, it would be important to further examine the reasons behind these fluctuations to fully understand the company's performance.
Peer comparison
Sep 2, 2023