MSC Industrial Direct Company Inc (MSM)
Operating return on assets (Operating ROA)
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 390,387 | 483,733 | 468,713 | 301,769 | 350,740 |
| Total assets | US$ in thousands | 2,462,310 | 2,544,130 | 2,729,410 | 2,462,120 | 2,382,430 |
| Operating ROA | 15.85% | 19.01% | 17.17% | 12.26% | 14.72% |
August 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $390,387K ÷ $2,462,310K
= 15.85%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. It indicates the efficiency of a company in utilizing its assets to generate operating income.
Analyzing the trend of MSC Industrial Direct Company Inc's Operating ROA over the past five years shows fluctuations in performance. The Operating ROA decreased from 14.72% in 2020 to 12.26% in 2021, reflecting a decline in profitability relative to assets employed. However, the company managed to improve its performance in the subsequent years, with Operating ROA increasing to 17.17% in 2022, then further to 19.01% in 2023, illustrating enhanced efficiency in generating operating income from its assets. The most recent data shows an Operating ROA of 15.85% in 2024, indicating a slight decrease in profitability efficiency compared to the previous year.
Overall, the trend in MSC Industrial Direct Company Inc's Operating ROA suggests fluctuations in the company's ability to generate operating profits relative to its assets. It is essential for investors and stakeholders to monitor these ratios continuously to assess the company's operational efficiency and performance over time.
Peer comparison
Aug 31, 2024