MSC Industrial Direct Company Inc (MSM)
Debt-to-assets ratio
| Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 224,165 | 468,728 | 582,428 | 494,565 | 264,225 |
| Total assets | US$ in thousands | 2,544,130 | 2,729,410 | 2,462,120 | 2,382,430 | 2,311,240 |
| Debt-to-assets ratio | 0.09 | 0.17 | 0.24 | 0.21 | 0.11 |
September 2, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $224,165K ÷ $2,544,130K
= 0.09
The debt-to-assets ratio of MSC Industrial Direct Co., Inc. has shown fluctuations over the past five years. As of September 2, 2023, the ratio stands at 0.18, indicating that the company finances 18% of its assets through debt. This represents a decrease from the previous year's ratio of 0.29, suggesting an improvement in the company's ability to finance its assets with less reliance on debt.
Looking back over the five-year period, the ratio has experienced variability, reaching its peak at 0.32 in August 28, 2021, and its lowest point at 0.19 in August 31, 2019. This fluctuation may indicate changes in the company's capital structure and its approach to leveraging.
The decreasing trend in the debt-to-assets ratio from 2021 suggests that the company may have been paying down its debts or increasing its asset base. A lower ratio generally indicates a stronger financial position with less reliance on debt financing, which could enhance the company's ability to weather economic downturns and pursue growth opportunities.
It is important to further analyze the components of both the debt and asset sides of the ratio to gain a comprehensive understanding of the company's financing and investment strategies. Additionally, comparing the debt-to-assets ratio with industry benchmarks could provide valuable insights into MSC Industrial Direct Co., Inc.'s leverage position relative to its peers.
Peer comparison
Sep 2, 2023