MSC Industrial Direct Company Inc (MSM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,391,800 | 1,479,160 | 1,350,430 | 1,150,870 | 1,314,940 |
| Debt-to-capital ratio | 0.17 | 0.13 | 0.26 | 0.34 | 0.27 |
August 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $278,398K ÷ ($278,398K + $1,391,800K)
= 0.17
The debt-to-capital ratio of MSC Industrial Direct Company Inc has shown some fluctuations over the past five years. In the most recent fiscal year (ending August 31, 2024), the ratio stood at 0.17, indicating that debt comprised 17% of the company's total capital structure. This represents an increase from the previous year (ending September 2, 2023) when the ratio was lower at 0.13.
Looking further back, the ratio was significantly higher in fiscal year 2022 (ending September 3, 2022) at 0.26 and even higher in fiscal year 2021 (ending August 28, 2021) at 0.34. However, there was a decrease in the ratio in fiscal year 2020 (ending August 29, 2020) when it was at 0.27.
The trend of the debt-to-capital ratio suggests that the company has been managing its debt levels relative to its total capital structure in a fluctuating manner over the years. It is essential to consider the reasons behind these fluctuations and the impact they may have on the company's financial health and risk profile.
Peer comparison
Aug 31, 2024