MSC Industrial Direct Company Inc (MSM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,479,160 | 1,350,430 | 1,150,870 | 1,314,940 | 1,478,550 |
| ROE | 23.20% | 25.16% | 18.85% | 19.10% | 19.54% |
September 2, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $343,233K ÷ $1,479,160K
= 23.20%
To assess the return on equity (ROE) of MSC Industrial Direct Co., Inc., we can observe the trend in ROE over the past five years. ROE is a key measure of a company's profitability and efficiency in utilizing shareholder equity to generate profits.
The ROE for MSC Industrial Direct Co., Inc. has experienced fluctuations over the past five years, ranging from 18.85% to 25.16%. The ROE decreased from 25.16% in 2022 to 23.20% in 2023, indicating a slight decline in the company's ability to generate profits from shareholders' equity.
MSC's ROE remained relatively stable around the range of 18.85% to 19.53% from 2019 to 2021, only to see a moderate increase to 25.16% in 2022, signifying a significant improvement in the company's efficiency in utilizing equity to generate returns.
Overall, although there have been fluctuations in the ROE, MSC Industrial Direct Co., Inc. has maintained relatively strong profitability and efficiency in utilizing shareholder equity to generate returns, with the company's ROE consistently staying above 18.85% over the past five years. However, it's important to consider the underlying factors driving these changes in ROE to gain a comprehensive understanding of the company's performance.
Peer comparison
Sep 2, 2023