MSC Industrial Direct Company Inc (MSM)
Working capital turnover
| 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 | Aug 31, 2019 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,966,848 | 3,994,127 | 3,996,173 | 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 | 3,363,817 | 3,359,132 |
| Total current assets | US$ in thousands | 1,264,910 | 1,270,970 | 1,317,510 | 1,316,220 | 1,314,770 | 1,558,570 | 1,543,620 | 1,467,560 | 1,416,810 | 1,348,410 | 1,314,240 | 1,307,670 | 1,185,350 | 1,148,320 | 1,237,770 | 1,555,950 | 1,212,550 | 1,170,820 | 1,199,610 | 1,215,770 |
| Total current liabilities | US$ in thousands | 630,430 | 627,858 | 649,436 | 683,475 | 645,281 | 726,761 | 725,944 | 619,806 | 597,171 | 586,275 | 561,928 | 768,816 | 553,214 | 513,989 | 408,733 | 592,011 | 694,558 | 403,828 | 446,916 | 486,068 |
| Working capital turnover | 6.25 | 6.21 | 5.98 | 6.30 | 5.81 | 4.56 | 4.51 | 4.11 | 4.14 | 4.34 | 4.29 | 5.84 | 4.93 | 4.93 | 3.84 | 3.40 | 6.39 | 4.37 | 4.47 | 4.60 |
March 2, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,966,848K ÷ ($1,264,910K – $630,430K)
= 6.25
The working capital turnover ratio for MSC Industrial Direct Company Inc has shown variability over the past few quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In the most recent quarter (March 2, 2024), the working capital turnover ratio stood at 6.25, reflecting a positive trend of working capital efficiency. This suggests that the company generated sales revenue 6.25 times relative to its working capital during that period.
Looking at the trend over the past two years, the working capital turnover ratio has generally been fluctuating between 4.11 and 6.30. It hit a low of 3.40 in August 29, 2020, indicating a period of lower efficiency in utilizing working capital to drive sales.
Overall, the company has shown an ability to efficiently convert its working capital into sales revenue, with periodic fluctuations possibly influenced by changes in operating activities. This trend should be further monitored to ensure consistent and optimal utilization of working capital resources.
Peer comparison
Mar 2, 2024