MSC Industrial Direct Company Inc (MSM)
Return on total capital
| 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 | Aug 31, 2019 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 436,042 | 460,813 | 478,825 | 501,794 | 507,661 | 492,759 | 468,035 | 415,171 | 407,091 | 337,750 | 301,859 | 284,465 | 264,248 | 314,144 | 350,282 | 367,411 | 369,028 | 387,318 | 400,087 | 417,614 |
| Long-term debt | US$ in thousands | 4,750 | 4,750 | 224,165 | — | — | 453,868 | 468,728 | 539,050 | 584,182 | 557,426 | 582,428 | 344,985 | 459,892 | — | 494,565 | 664,454 | 264,429 | 264,323 | 264,225 | — |
| Total stockholders’ equity | US$ in thousands | 1,390,510 | 1,385,070 | 1,479,160 | 1,489,260 | 1,420,930 | 1,386,340 | 1,350,430 | 1,296,120 | 1,223,970 | 1,182,750 | 1,150,870 | 1,144,650 | 1,112,110 | 1,124,480 | 1,314,940 | 1,294,900 | 1,257,300 | 1,510,860 | 1,478,550 | 1,448,440 |
| Return on total capital | 31.25% | 33.16% | 28.11% | 33.69% | 35.73% | 26.78% | 25.73% | 22.62% | 22.51% | 19.41% | 17.42% | 19.10% | 16.81% | 27.94% | 19.36% | 18.75% | 24.25% | 21.82% | 22.96% | 28.83% |
March 2, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $436,042K ÷ ($4,750K + $1,390,510K)
= 31.25%
From the data provided, we can see that MSC Industrial Direct Company Inc's return on total capital has fluctuated over the past few quarters. The return on total capital ranged from 16.81% to 35.73% during the period under review.
The highest return on total capital was observed in the first quarter of 2023, reaching 35.73%, while the lowest was recorded in the first quarter of 2021, at 16.81%. Overall, the trend in return on total capital indicates fluctuation without a clear pattern of consistent improvement or decline.
It is important to note that return on total capital measures the efficiency of a company in generating profits from its capital investments. A higher return on total capital indicates that the company is efficiently utilizing its capital to generate profits for its shareholders.
Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance and its ability to generate returns for its investors.
Peer comparison
Mar 2, 2024