MSC Industrial Direct Company Inc (MSM)
Debt-to-equity 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-equity ratio | 0.20 | 0.15 | 0.35 | 0.51 | 0.38 |
August 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $278,398K ÷ $1,391,800K
= 0.20
The debt-to-equity ratio of MSC Industrial Direct Company Inc has exhibited fluctuations over the past five years. As of August 31, 2024, the company's debt-to-equity ratio stands at 0.20, indicating that the company possesses a lower level of debt relative to its equity. This suggests a strong financial position and lower financial risk, as a lower ratio implies that the company relies more on equity financing rather than debt financing.
Comparing this ratio to previous years, we see a decreasing trend from 0.38 in August 29, 2020, to the current 0.20 in August 31, 2024, which could indicate a more conservative approach to financing activities or improved debt management strategies over the years.
It is essential to note that although a lower debt-to-equity ratio generally signifies a healthier financial position, the optimal level of this ratio may vary based on the industry and company's specific circumstances. Therefore, continuous monitoring and further analysis of other financial metrics are recommended to gain a more comprehensive understanding of MSC Industrial Direct Company Inc's overall financial health and performance.
Peer comparison
Aug 31, 2024