MSC Industrial Direct Company Inc (MSM)
Debt-to-assets ratio
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 278,398 | 224,165 | 468,728 | 582,428 | 494,565 |
| Total assets | US$ in thousands | 2,462,310 | 2,544,130 | 2,729,410 | 2,462,120 | 2,382,430 |
| Debt-to-assets ratio | 0.11 | 0.09 | 0.17 | 0.24 | 0.21 |
August 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $278,398K ÷ $2,462,310K
= 0.11
The debt-to-assets ratio of MSC Industrial Direct Company Inc has shown a fluctuating trend over the past five years, indicating varying levels of leverage and financial risk. The ratio decreased from 0.24 in August 2021 to 0.11 in August 2024, suggesting a significant improvement in the company's debt management during this period.
In September 2020, the ratio was at 0.21, and it continued to decline to 0.17 by September 2022 before reaching its lowest point at 0.09 in September 2023. This downward trend indicates that the company has been reducing its debt relative to its total assets, which could signify a strengthening financial position and improved solvency.
The debt-to-assets ratio measures the proportion of a company's assets financed by debt, with lower ratios indicating less reliance on debt financing. The decreasing trend in MSC Industrial Direct's ratio over the years suggests a positive financial management strategy focused on reducing debt levels and enhancing the company's overall financial health.
It is important to continue monitoring the debt-to-assets ratio in conjunction with other financial metrics to gain a comprehensive understanding of MSC Industrial Direct's leverage and liquidity position.
Peer comparison
Aug 31, 2024