MSC Industrial Direct Company Inc (MSM)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 390,387 | 417,584 | 446,204 | 469,291 | 483,733 | 509,655 | 511,105 | 493,991 | 468,713 | 415,950 | 407,740 | 338,593 | 301,769 | 283,475 | 264,701 | 314,350 | 350,740 | 368,334 | 368,983 | 387,294 |
| Total assets | US$ in thousands | 2,462,310 | 2,467,790 | 2,501,390 | 2,493,720 | 2,544,130 | 2,526,680 | 2,524,460 | 2,749,400 | 2,729,410 | 2,619,320 | 2,564,920 | 2,496,340 | 2,462,120 | 2,424,320 | 2,302,240 | 2,286,650 | 2,382,430 | 2,709,710 | 2,377,030 | 2,339,760 |
| Operating ROA | 15.85% | 16.92% | 17.84% | 18.82% | 19.01% | 20.17% | 20.25% | 17.97% | 17.17% | 15.88% | 15.90% | 13.56% | 12.26% | 11.69% | 11.50% | 13.75% | 14.72% | 13.59% | 15.52% | 16.55% |
August 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $390,387K ÷ $2,462,310K
= 15.85%
Operating return on assets (ROA) is a key financial ratio that measures how efficiently a company generates profits from its assets used in core operations. MSC Industrial Direct Company Inc's operating ROA has shown fluctuating trends over the past several quarters.
The operating ROA has ranged from 11.50% to 20.25% over the last two years. The highest operating ROA was recorded at 20.25% on Mar 4, 2023, indicating strong profitability relative to the assets employed. On the other hand, the lowest operating ROA of 11.50% on May 29, 2021, implies a lower level of profitability compared to the assets utilized during that period.
Overall, MSC Industrial Direct Company Inc's operating ROA has shown some variability, with some quarters demonstrating higher efficiencies in generating profits from the assets, while others have shown lower efficiencies. Further analysis is needed to understand the underlying factors driving these fluctuations and to assess the company's overall financial performance and asset utilization efficiency.
Peer comparison
Aug 31, 2024