MSC Industrial Direct Company Inc (MSM)
Current ratio
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,188,090 | 1,317,510 | 1,543,620 | 1,314,240 | 1,237,770 |
| Total current liabilities | US$ in thousands | 605,427 | 649,436 | 725,944 | 561,928 | 408,733 |
| Current ratio | 1.96 | 2.03 | 2.13 | 2.34 | 3.03 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,188,090K ÷ $605,427K
= 1.96
The current ratio of MSC Industrial Direct Company Inc has been gradually decreasing over the past five years. In August 2020, the company had a current ratio of 3.03, indicating a high level of liquidity. However, by August 2021, the current ratio decreased to 2.34, and this downward trend continued in the following years, reaching 1.96 in August 2024.
A current ratio above 1.0 is generally considered healthy, as it suggests that the company's current assets are sufficient to cover its current liabilities. While the current ratio of MSC Industrial Direct Company Inc has been above 1.0 throughout the years presented, the declining trend raises some concerns about the company's liquidity position. A lower current ratio may indicate potential difficulties in meeting short-term obligations or inefficiencies in managing current assets and liabilities.
It is important for investors and stakeholders to closely monitor the current ratio of MSC Industrial Direct Company Inc and assess the reasons behind the declining trend to understand the company's liquidity position and financial health accurately.
Peer comparison
Aug 31, 2024