MSC Industrial Direct Company Inc (MSM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.09 | 0.00 | 0.00 | 0.17 | 0.17 | 0.21 | 0.23 | 0.22 | 0.24 | 0.14 | 0.20 | 0.00 | 0.21 | 0.25 | 0.11 | 0.11 | 0.11 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.13 | 0.00 | 0.00 | 0.25 | 0.26 | 0.29 | 0.32 | 0.32 | 0.34 | 0.23 | 0.29 | 0.00 | 0.27 | 0.34 | 0.17 | 0.15 | 0.15 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.15 | 0.00 | 0.00 | 0.33 | 0.35 | 0.42 | 0.48 | 0.47 | 0.51 | 0.30 | 0.41 | 0.00 | 0.38 | 0.51 | 0.21 | 0.17 | 0.18 | 0.00 |
| Financial leverage ratio | 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 | 1.56 | 1.60 |
The solvency ratios of MSC Industrial Direct Company Inc indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has generally remained low, indicating that the company has minimal debt relative to its total assets, with occasional spikes in the third quarter of 2023 and the first quarter of 2022.
Similarly, the debt-to-capital and debt-to-equity ratios have also been relatively low, suggesting that the company relies less on debt financing compared to its equity and capital. However, there have been occasional increases in these ratios, particularly in the third quarter of 2023 and the first quarter of 2022, which may signify increased debt levels during those periods.
The financial leverage ratio has shown variability over time but has generally been within a manageable range. The ratio peaked in the first quarter of 2022, indicating higher financial leverage during that period. It is important for investors and stakeholders to monitor these ratios to ensure that the company's solvency position remains stable and sustainable.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for MSC Industrial Direct Company Inc has shown a generally strong and stable trend over the past 2 years. The ratio has consistently been well above 15, indicating that the company has ample earnings to cover its interest expenses.
The ratio has ranged from a low of 15.60 to a high of 27.29, with an average of approximately 22.68 over the period. This signifies that the company's operating income is sufficient to cover its interest expenses by a comfortable margin, providing a buffer against potential fluctuations in earnings.
The consistent and high interest coverage ratio reflects the company's sound financial health and ability to meet its debt obligations. Investors and creditors may view this as a positive signal of MSC Industrial Direct Company Inc's financial stability and ability to manage its debt effectively.