MSC Industrial Direct Company Inc (MSM)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 381,672 | 411,324 | 436,042 | 460,813 | 478,825 | 501,794 | 507,661 | 492,759 | 468,035 | 415,171 | 407,091 | 337,750 | 301,859 | 284,465 | 264,248 | 314,144 | 350,282 | 367,411 | 369,028 | 387,318 |
| Interest expense (ttm) | US$ in thousands | 25,770 | 23,785 | 21,939 | 20,944 | 22,543 | 23,890 | 23,129 | 20,790 | 17,599 | 15,500 | 14,919 | 14,882 | 14,510 | 15,188 | 16,943 | 16,858 | 16,673 | 15,847 | 14,961 | 16,005 |
| Interest coverage | 14.81 | 17.29 | 19.88 | 22.00 | 21.24 | 21.00 | 21.95 | 23.70 | 26.59 | 26.79 | 27.29 | 22.70 | 20.80 | 18.73 | 15.60 | 18.63 | 21.01 | 23.18 | 24.67 | 24.20 |
August 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $381,672K ÷ $25,770K
= 14.81
The interest coverage ratio for MSC Industrial Direct Company Inc has shown a consistent increasing trend over the periods provided in the table. The ratio has gradually improved from 14.81 in August 2024 to 24.20 in February 2020. This indicates that the company's ability to meet its interest obligations from its operating profits has strengthened over time.
The company's interest coverage ratio has generally been comfortably above 1, which suggests that MSC Industrial Direct Company Inc has generated sufficient operating income to cover its interest expenses. Higher values of the interest coverage ratio indicate a lower financial risk for the company, as it implies a more robust ability to service its interest payments.
Overall, the improving trend and the consistently high values of the interest coverage ratio for MSC Industrial Direct Company Inc reflect a positive financial position with regards to its ability to handle interest expenses using its earnings.
Peer comparison
Aug 31, 2024