MSC Industrial Direct Company Inc (MSM)
Working capital 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 current assets | US$ in thousands | 1,317,510 | 1,543,620 | 1,314,240 | 1,237,770 | 1,199,610 |
| Total current liabilities | US$ in thousands | 649,436 | 725,944 | 561,928 | 408,733 | 446,916 |
| Working capital turnover | 5.97 | 4.50 | 4.29 | 3.83 | 4.47 |
September 2, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,986,180K ÷ ($1,317,510K – $649,436K)
= 5.97
The working capital turnover ratio for MSC Industrial Direct Co., Inc. has shown an increasing trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio stood at 4.47 in 2019 and exhibited a fluctuating pattern until reaching 6.00 in 2023. This suggests that the company is generating more sales revenue for each dollar invested in working capital, reflecting improved liquidity and operational efficiency. The consistent upward trend in this ratio indicates a positive trend in the company's ability to efficiently utilize its working capital to drive sales and support its operations.
Peer comparison
Sep 2, 2023