MSC Industrial Direct Company Inc (MSM)
Pretax margin
| Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 456,282 | 450,436 | 287,349 | 333,609 | 383,197 |
| Revenue | US$ in thousands | 3,986,180 | 3,683,500 | 3,228,150 | 3,174,920 | 3,363,820 |
| Pretax margin | 11.45% | 12.23% | 8.90% | 10.51% | 11.39% |
September 2, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $456,282K ÷ $3,986,180K
= 11.45%
The pretax margin reflects the proportion of each dollar of revenue that translates into pre-tax profit. A higher pretax margin indicates better efficiency in converting sales into profit.
Looking at the historical data for MSC Industrial Direct Co., Inc., we can see the following trend in the pretax margin:
- Sep 2, 2023: 11.38%
- Sep 3, 2022: 12.22%
- Aug 28, 2021: 8.89%
- Aug 29, 2020: 10.47%
- Aug 31, 2019: 11.39%
The data indicates some fluctuation in the pretax margin over the years. While the pretax margin in 2023 decreased slightly to 11.38% from 12.22% in 2022, it remained significantly higher compared to 2021 when it was 8.89%. This suggests that the company was more efficient in generating pre-tax profit from its sales in 2023 compared to 2021. However, it is important to note that the improvement has not been consistent over the years, as the margin was higher in 2019 than in 2023.
It is essential to dig deeper into the company's financial reports to understand the factors contributing to these fluctuations in pretax margin. Changes in revenue, cost of goods sold, operating expenses, and non-operating income can all impact the pretax margin. Additionally, economic conditions and industry-specific factors may also play a role.
Analyzing the pretax margin alongside other financial ratios and key performance indicators can provide a more comprehensive understanding of MSC Industrial Direct Co., Inc.'s operational efficiency and overall financial health.
Peer comparison
Sep 2, 2023