MSC Industrial Direct Company Inc (MSM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,544,130 | 2,729,410 | 2,462,120 | 2,382,430 | 2,311,240 |
| Operating ROA | 19.01% | 17.17% | 12.26% | 14.72% | 17.31% |
September 2, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $483,733K ÷ $2,544,130K
= 19.01%
To analyze MSC Industrial Direct Co., Inc.'s operating return on assets (operating ROA), we can see a positive trend in the company's performance over the past five years. The operating ROA has increased from 17.31% in 2019 to 19.33% in 2023, indicating an improvement in the company's ability to generate operating income from its assets.
This upward trend suggests that MSC Industrial Direct Co., Inc. has been effectively utilizing its assets to generate operating profits. It reflects the company's efficiency in managing its operating expenses and generating earnings from its assets.
The consistent improvement in operating ROA is a positive indicator of the company's operational performance and management's ability to utilize its assets efficiently to generate operating income over the years.
Overall, the increasing trend in operating ROA indicates that MSC Industrial Direct Co., Inc. has been successful in enhancing its operational efficiency and profitability, which is a favorable signal for investors and stakeholders.
Peer comparison
Sep 2, 2023