MSC Industrial Direct Company Inc (MSM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 22,227 | 25,805 | 50,052 | 58,428 | 49,615 | 26,331 | 43,537 | 28,847 | 41,754 | 62,875 | 40,536 | 27,429 | 20,242 | 53,104 | 125,211 | 353,393 | 44,867 | 27,778 | 32,286 | 38,771 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.04 | 0.04 | 0.08 | 0.09 | 0.08 | 0.04 | 0.06 | 0.05 | 0.07 | 0.11 | 0.07 | 0.04 | 0.04 | 0.10 | 0.31 | 0.60 | 0.06 | 0.07 | 0.07 | 0.08 |
March 2, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($22,227K
+ $—K)
÷ $630,430K
= 0.04
The cash ratio of MSC Industrial Direct Company Inc has shown some fluctuations over the periods presented. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
The cash ratio has ranged from a low of 0.04 to a high of 0.60 over the past 21 quarters. In general, a higher cash ratio indicates a stronger ability to meet short-term obligations. The company's cash ratio has mostly been below 0.10, indicating that a significant portion of its current liabilities may not be covered by cash on hand.
However, it is worth noting that there have been periods where the cash ratio improved, such as in May 2020 and August 2020 when the ratio was 0.31 and 0.60 respectively. These spikes in the cash ratio suggest that the company had increased cash reserves relative to its short-term liabilities during those periods.
Overall, the fluctuating cash ratio of MSC Industrial Direct Company Inc suggests varying levels of liquidity and ability to meet short-term obligations over the past few years. Further analysis would be needed to understand the reasons behind these fluctuations and to assess the company's overall financial health.
Peer comparison
Mar 2, 2024