MSC Industrial Direct Company Inc (MSM)
Quick ratio
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 29,588 | 50,052 | 43,537 | 40,536 | 125,211 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 412,122 | 435,421 | 687,608 | 560,373 | 491,743 |
| Total current liabilities | US$ in thousands | 605,427 | 649,436 | 725,944 | 561,928 | 408,733 |
| Quick ratio | 0.73 | 0.75 | 1.01 | 1.07 | 1.51 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($29,588K
+ $—K
+ $412,122K)
÷ $605,427K
= 0.73
The quick ratio of MSC Industrial Direct Company Inc has exhibited a declining trend over the past five years. As of Aug 31, 2024, the quick ratio stands at 0.73, indicating a decrease from the previous year's ratio of 0.75. The quick ratio has reduced significantly from 1.51 in Aug 29, 2020, to 0.73 in Aug 31, 2024, which suggests a potential liquidity concern. The downward trend in the quick ratio may indicate a weakening ability of the company to meet its short-term obligations with its most liquid assets. This declining trend warrants a closer examination of the company's liquidity management and potential financial risks.
Peer comparison
Aug 31, 2024