MSC Industrial Direct Company Inc (MSM)
Return on assets (ROA)
| Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 343,233 | 339,786 | 216,907 | 251,117 | 288,865 |
| Total assets | US$ in thousands | 2,544,130 | 2,729,410 | 2,462,120 | 2,382,430 | 2,311,240 |
| ROA | 13.49% | 12.45% | 8.81% | 10.54% | 12.50% |
September 2, 2023 calculation
ROA = Net income ÷ Total assets
= $343,233K ÷ $2,544,130K
= 13.49%
To analyze the return on assets (ROA) of MSC Industrial Direct Co., Inc. over the past five years, we can see that the company has demonstrated a fluctuating trend in its ROA.
In September 2023, the ROA stood at 13.49%, indicating that for every dollar of assets, the company generated a net income of approximately 13.49 cents. This represents an improvement from the previous year's ROA of 12.45%. From a trend perspective, this suggests that the company has become more efficient in generating profits from its assets.
Looking back to August 2021, the ROA was 8.81%, indicating a lower level of efficiency compared to the current period. However, it's important to note that the ROA has shown a significant improvement since then, suggesting the company has made strides in efficiently utilizing its assets to generate profits.
Comparing the current ROA to that of August 2020 and August 2019, we observe a slight decrease from 10.54% to 12.49% over this period. This indicates a slight decline in the company's ability to generate profits from its assets, although the level remains relatively healthy and competitive.
Overall, it is evident that the company has generally been effective in generating returns from its assets, with the most recent year showing a notable increase. This suggests that the company's management has been successful in employing its assets efficiently to generate profits. However, continued monitoring of the ROA is necessary to assess the sustainability of this improvement and to ensure the company's long-term profitability.
Peer comparison
Sep 2, 2023