MSC Industrial Direct Company Inc (MSM)
Cash ratio
| Aug 31, 2024 | Jun 1, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 29,588 | 25,928 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 605,427 | 583,512 | 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 |
| Cash ratio | 0.05 | 0.04 | 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 |
August 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($29,588K
+ $—K)
÷ $605,427K
= 0.05
The cash ratio of MSC Industrial Direct Company Inc has fluctuated over the past few years, ranging from 0.04 to 0.60. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of liquidity.
The cash ratio was at its lowest in June 2024 and March 2024, standing at 0.04, which suggests that the company may have had limited liquid assets available to cover its short-term liabilities during those periods. However, in November 2020, the cash ratio spiked to 0.60, indicating a significant increase in liquidity and the company's ability to settle short-term obligations comfortably with its cash reserves.
Overall, while the cash ratio has shown some variability, it is important for MSC Industrial Direct Company Inc to carefully manage its cash and cash equivalents to ensure it maintains a healthy level of liquidity to meet its short-term financial obligations.
Peer comparison
Aug 31, 2024