MSC Industrial Direct Company Inc (MSM)
Return on total capital
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 390,387 | 478,825 | 468,035 | 301,859 | 350,282 |
| Long-term debt | US$ in thousands | 278,398 | 224,165 | 468,728 | 582,428 | 494,565 |
| Total stockholders’ equity | US$ in thousands | 1,391,800 | 1,479,160 | 1,350,430 | 1,150,870 | 1,314,940 |
| Return on total capital | 23.37% | 28.11% | 25.73% | 17.42% | 19.36% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $390,387K ÷ ($278,398K + $1,391,800K)
= 23.37%
MSC Industrial Direct Company Inc has shown varying levels of return on total capital over the past five years. The return on total capital decreased from 28.11% in Sep 2, 2023, to 23.37% in Aug 31, 2024. This decline indicates a potential reduction in the company's efficiency in generating profits from its total capital employed.
However, when compared to the previous years, the return on total capital in Aug 31, 2024, is still relatively high. The company achieved a return on total capital of 25.73% in Sep 3, 2022, and 17.42% in Aug 28, 2021, showing fluctuations in performance over the years.
Overall, MSC Industrial Direct Company Inc has maintained a generally healthy return on total capital, indicating its ability to effectively utilize its capital to generate profits, albeit with some variability in performance.
Peer comparison
Aug 31, 2024