MSC Industrial Direct Co (MSC Industrial Direct Co) Inventory Turnover

: 0.78 (As of Feb. 2024)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. MSC Industrial Direct Co's Cost of Goods Sold for the three months ended in Feb. 2024 was $547 Mil. MSC Industrial Direct Co's Average Total Inventories for the quarter that ended in Feb. 2024 was $697 Mil. MSC Industrial Direct Co's Inventory Turnover for the quarter that ended in Feb. 2024 was 0.78.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. MSC Industrial Direct Co's Days Inventory for the three months ended in Feb. 2024 was 116.39.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. MSC Industrial Direct Co's Inventory-to-Revenue for the quarter that ended in Feb. 2024 was 0.75.

MSC Industrial Direct Co Inventory Turnover Historical Data

The historical data trend for MSC Industrial Direct Co's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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MSC Industrial Direct Co Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Inventory Turnover

3.59

3.36

3.27

3.19

3.28

MSC Industrial Direct Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Inventory Turnover																0.77	0.85	0.85	0.78	0.78

MSC Industrial Direct Co Inventory Turnover Calculation

MSC Industrial Direct Co's Inventory Turnover for the fiscal year that ended in Aug. 2023 is calculated as

	Inventory Turnover (A: Aug. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Aug. 2023 )	/ (	(Total Inventories (A: Aug. 2022 )	+	Total Inventories (A: Aug. 2023 ))	/	count )
=	2366.317	/ (	(715.625	+	726.521)	/	2 )
=	2366.317	/	721.073
=	3.28

MSC Industrial Direct Co's Inventory Turnover for the quarter that ended in Feb. 2024 is calculated as

	Inventory Turnover (Q: Feb. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Feb. 2024 )	/ (	(Total Inventories (Q: Nov. 2023 )	+	Total Inventories (Q: Feb. 2024 ))	/	count )
=	546.737	/ (	(709.362	+	685.373)	/	2 )
=	546.737	/	697.3675
=	0.78

MSC Industrial Direct Co (NYSE:MSM) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

MSC Industrial Direct Co's Days Inventory for the three months ended in Feb. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Feb. 2024 )	/	Cost of Goods Sold (Q: Feb. 2024 )	*	Days in Period
	=	697.3675	/	546.737	*	365 / 4
	=	116.39

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

MSC Industrial Direct Co's Inventory to Revenue for the quarter that ended in Feb. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	697.3675	/	935.348
	=	0.75

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

MSC Industrial Direct Co Inventory Turnover Related Terms

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MSC Industrial Direct Co (MSC Industrial Direct Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » MSC Industrial Direct Co Inc (NYSE:MSM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

98M:Germany 98M:Germany

Address

515 Broadhollow Road, Suite 1000, Melville, NY, USA, 11747

Website

https://www.mscdirect.com

MSC Industrial Direct is one of the largest industrial distributors with a focus on metalworking and maintenance, repair, and operations products and services. The company offers over 2 million products through its distribution network, which has 11 fulfillment centers. Although MSC has a presence in Canada, Mexico, and the United Kingdom, it primarily operates in the United States. In fiscal 2023, 95% of the firm's $4.0 billion of sales was generated in the U.S.

Executives

Erik Gershwind	officer: SVP, Product Mgmnt & Marketing	C/O MSC INDUSTRIAL DIRECT CO INC, 75 MAXESS ROAD, MELVILLE NY 11747
Kristen Actis-grande	officer: EVP & Chief Financial Officer	C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Elizabeth Bledsoe	officer: SVP & Chief People Officer	C/O MSC LNDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Kimberly Shacklett	officer: SVP, Sales & Customer Success	C/O MSC INDUSTRIAL DIRECT CO., INC., 515 BROADHOLLOW ROAD, MELVILLE NY 11747
Douglas E Jones	officer: EVP, Chief Supply Chain	C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Stacey L. Bennett	10 percent owner	410 PARK AVE., SUITE 620, NEW YORK NY 10022
Rahquel Purcell	director	C/O MSC INDUSTRIAL DIRECT CO., INC., 515 BROADHOLLOW ROAD, MELVILLE NY 11747
Martina Mcisaac	officer: EVP, Chief Operating Officer	C/O MSC INDUSTRIAL DIRECT CO., INC., 515 BROADHOLLOW ROAD, MELVILLE NY 11747
Steven N Baruch	officer: SVP, STRATEGY & MARKETING	18232 PENINSULA CLUB, CORNELIUS NC 28031
Mitchell Jacobson	director, 10 percent owner, officer: Chairman and CEO	C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS RD, MELVILLE NY 11747
Louise K Goeser	director	C/O PPL CORPORATION, TWO NORTH NINTH STREET, ALLENTOWN PA 18101
John Hill	officer: SVP, Chief Digital Info Offr.	C/O MSC INDUSTRIAL DIRECT CO., INC., 515 BROADHOLLOW ROAD, MELVILLE NY 11747
Neal Dongre	officer: VP, Gen Counsel & Corp Sec	C/O MSC INDUSTRIAL DIRECT CO., INC., 515 BROADHOLLOW ROAD, MELVILLE NY 11747
Martin Edward F Jr	officer: SVP, Sales & Customer Success	C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Kari D Heerdt	officer: SVP, Chief People Officer	C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747