MSC Industrial Direct Company Inc (MSM)
Return on total capital
| Aug 31, 2024 | Jun 1, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 381,672 | 411,324 | 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 |
| Long-term debt | US$ in thousands | 278,398 | 4,750 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,391,800 | 1,401,620 | 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 |
| Return on total capital | 22.85% | 29.25% | 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% |
August 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $381,672K ÷ ($278,398K + $1,391,800K)
= 22.85%
The return on total capital for MSC Industrial Direct Company Inc has fluctuated over the past few financial reporting periods. The ratio indicates the efficiency of the company in generating profits from its total capital employed. From the data provided, we can observe that the return on total capital ranged from a low of 16.81% to a high of 35.73%.
The highest return on total capital was recorded in March 4, 2023, at 35.73%, showcasing the company's ability to generate significant profits relative to the capital invested. On the other hand, the lowest return on total capital was noted in May 29, 2021, at 16.81%, indicating a relatively less efficient use of capital during that period.
Overall, the return on total capital for MSC Industrial Direct Company Inc has shown variability but generally demonstrates a positive trend, with some periods reflecting stronger performance than others. It is essential for investors and stakeholders to monitor this ratio consistently to assess the company's capital efficiency and profitability over time.
Peer comparison
Aug 31, 2024