MSC Industrial Direct Company Inc (MSM)
Working capital 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 current assets | US$ in thousands | 1,188,090 | 1,317,510 | 1,543,620 | 1,314,240 | 1,237,770 |
| Total current liabilities | US$ in thousands | 605,427 | 649,436 | 725,944 | 561,928 | 408,733 |
| Working capital turnover | 6.56 | 5.97 | 4.50 | 4.29 | 3.83 |
August 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,820,260K ÷ ($1,188,090K – $605,427K)
= 6.56
The working capital turnover of MSC Industrial Direct Company Inc has been gradually increasing over the past five years. This ratio indicates how efficiently the company is utilizing its working capital to generate sales.
The most recent figure for working capital turnover as of August 31, 2024, stands at 6.56, which is higher than the previous year's figure of 5.97. This increase suggests that the company is more effectively managing its working capital to drive sales.
Comparing the latest ratio to the figures from five years ago, we see a significant improvement. In August 2020, the working capital turnover was 3.83, demonstrating a notable increase in efficiency over the five-year period.
Overall, the trend of increasing working capital turnover indicates that MSC Industrial Direct Company Inc has been improving its efficiency in utilizing its working capital to generate sales over the years. This could be a positive sign of effective working capital management and operational performance.
Peer comparison
Aug 31, 2024