MSC Industrial Direct Company Inc (MSM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,462,310 | 2,467,790 | 2,501,390 | 2,493,720 | 2,544,130 | 2,526,680 | 2,524,460 | 2,749,400 | 2,729,410 | 2,619,320 | 2,564,920 | 2,496,340 | 2,462,120 | 2,424,320 | 2,302,240 | 2,286,650 | 2,382,430 | 2,709,710 | 2,377,030 | 2,339,760 |
| 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 |
| Financial leverage ratio | 1.77 | 1.76 | 1.80 | 1.80 | 1.72 | 1.70 | 1.78 | 1.98 | 2.02 | 2.02 | 2.10 | 2.11 | 2.14 | 2.12 | 2.07 | 2.03 | 1.81 | 2.09 | 1.89 | 1.55 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,462,310K ÷ $1,391,800K
= 1.77
The financial leverage ratio of MSC Industrial Direct Company Inc has exhibited fluctuations over the past several quarters. The ratio indicates the level of debt financing relative to equity in the company's capital structure.
From Nov 30, 2019 to Aug 31, 2024, the financial leverage ratio ranged from a low of 1.55 to a high of 2.14. The ratio peaked in the quarters ending Feb 26, 2022, and Nov 27, 2021, at 2.10 and 2.11 respectively, before slightly decreasing in subsequent quarters.
The ratio generally increased throughout 2022 before showing signs of fluctuation in 2023 and 2024. A ratio above 1 indicates that the company relies more on debt financing than equity, which may increase the financial risk in the business.
Overall, the trend in the financial leverage ratio suggests that MSC Industrial Direct Company Inc has been moderately leveraging its operations, with the ratio hovering above 1.5 throughout the observed periods. Investors and stakeholders should continue to monitor the company's leverage levels to assess its risk profile and financial stability.
Peer comparison
Aug 31, 2024