MSC Industrial Direct Company Inc (MSM)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.17 | 0.00 | 0.00 | 0.00 | 0.13 | 0.00 | 0.00 | 0.25 | 0.26 | 0.29 | 0.32 | 0.32 | 0.34 | 0.23 | 0.29 | 0.00 | 0.27 | 0.34 | 0.17 | 0.15 |
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 exhibited some fluctuations over the past several quarters. In the most recent period ending on August 31, 2024, the ratio stood at 0.17, indicating that the company's debt represented 17% of its total capital.
The ratio was at its lowest in multiple quarters, including June 1, 2024, March 2, 2024, December 2, 2023, June 3, 2023, and February 27, 2021, where it showed as 0.00, suggesting that the company had no debt relative to its capital on those dates. This could imply that the company utilized more equity financing rather than debt during those periods.
On the other hand, the ratio peaked at 0.34 in November 27, 2021, February 26, 2022, and May 30, 2020, signifying that debt accounted for 34% of the company's capital structure at those points in time.
Overall, the trend in the debt-to-capital ratio indicates that MSC Industrial Direct Company Inc has maintained a relatively conservative approach to debt utilization, with fluctuations reflecting different capital structure decisions over the analyzed periods. Investors and stakeholders may consider assessing the company's debt management strategies and their implications on financial risk and performance.
Peer comparison
Aug 31, 2024