MSC Industrial Direct Company Inc (MSM)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,188,090 | 1,212,850 | 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 |
| 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 |
| Current ratio | 1.96 | 2.08 | 2.01 | 2.02 | 2.03 | 1.93 | 2.04 | 2.14 | 2.13 | 2.37 | 2.37 | 2.30 | 2.34 | 1.70 | 2.14 | 2.23 | 3.03 | 2.63 | 1.75 | 2.90 |
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 relatively stable over the past few years, ranging from 1.70 to 3.03. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive indicator of liquidity.
The current ratio fluctuated within a moderate range between 1.70 and 3.03, with the highest ratio observed in November 2020 and the lowest in May 2021. Overall, the current ratio has generally been above 2, suggesting that MSC Industrial Direct Company Inc has a comfortable margin to cover its short-term obligations with its current assets over the period analyzed.
It is important to note that while a high current ratio indicates good short-term financial health, an excessively high ratio may suggest that the company is not effectively utilizing its current assets to generate revenue. Therefore, it is essential for the company to maintain an appropriate balance between current assets and current liabilities to ensure optimal liquidity and operational efficiency.
Peer comparison
Aug 31, 2024