MSC Industrial Direct Company Inc (MSM)
Cash ratio
| Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 50,052 | 43,537 | 40,536 | 125,211 | 32,286 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 649,436 | 725,944 | 561,928 | 408,733 | 446,916 |
| Cash ratio | 0.08 | 0.06 | 0.07 | 0.31 | 0.07 |
September 2, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($50,052K
+ $—K)
÷ $649,436K
= 0.08
The cash ratio of MSC Industrial Direct Co., Inc. has shown some fluctuation over the past five years. The ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, was 0.24 as of September 2, 2023. This indicates that for every dollar of current liabilities, the company had $0.24 in cash and cash equivalents, suggesting a moderate level of liquidity.
Comparing this to previous years, there was a notable increase from the ratio of 0.19 in September 3, 2022, while in August 29, 2020, the ratio was significantly higher at 0.50. This indicates that in 2020, the company had a higher level of cash reserves relative to its current liabilities, which suggests a better ability to meet short-term obligations.
However, the ratio decreased to 0.22 in August 31, 2019, before increasing to 0.23 in August 28, 2021. This fluctuation may indicate varying levels of liquidity and the company's ability to manage its short-term financial commitments over the years.
Overall, the company's cash ratio has shown some variation, which may warrant further investigation into the factors driving these fluctuations and their impact on the company's overall liquidity position.
Peer comparison
Sep 2, 2023