MSC Industrial Direct Company Inc (MSM)
Interest coverage
| Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 478,825 | 468,035 | 301,859 | 350,282 | 400,087 |
| Interest expense | US$ in thousands | 22,543 | 17,599 | 14,510 | 16,673 | 16,890 |
| Interest coverage | 21.24 | 26.59 | 20.80 | 21.01 | 23.69 |
September 2, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $478,825K ÷ $22,543K
= 21.24
The interest coverage ratio for MSC Industrial Direct Co., Inc. has shown consistent strength over the past five years, with values ranging from 21.47 to 27.19. This indicates that the company's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses. A higher interest coverage ratio suggests that the company is in a better position to meet its interest obligations and has lower default risk. The trend in the interest coverage ratio over the years reflects the company's ability to generate stable and growing earnings in relation to its interest expenses, demonstrating financial stability and solvency.
Peer comparison
Sep 2, 2023