MSC Industrial Direct Company Inc (MSM)
Interest coverage
| 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 | Aug 31, 2019 | Jun 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 400,087 | 417,614 |
| Interest expense (ttm) | US$ in thousands | 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 | 16,890 | 17,304 |
| Interest coverage | 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 | 23.69 | 24.13 |
March 2, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $436,042K ÷ $21,939K
= 19.88
The interest coverage ratio for MSC Industrial Direct Company Inc has exhibited a generally positive trend over the past few quarters, indicating the company's ability to comfortably meet its interest obligations with its operating income. The ratio has consistently been above 15, reflecting a strong ability to cover interest expenses; with recent values hovering between 19.88 and 27.29. This signifies that the company's earnings are substantially higher than its interest expense, providing a cushion against potential financial risks associated with debt servicing. Overall, the trend in interest coverage suggests that MSC Industrial Direct Company Inc is efficiently managing its debt obligations and is in a financially healthy position.
Peer comparison
Mar 2, 2024