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MSC Industrial Direct Co (MSC Industrial Direct Co) Return-on-Tangible-Asset : 14.81% (As of Feb. 2024)


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What is MSC Industrial Direct Co Return-on-Tangible-Asset?

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. MSC Industrial Direct Co's annualized Net Income for the quarter that ended in Feb. 2024 was $247 Mil. MSC Industrial Direct Co's average total tangible assets for the quarter that ended in Feb. 2024 was $1,670 Mil. Therefore, MSC Industrial Direct Co's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2024 was 14.81%.

The historical rank and industry rank for MSC Industrial Direct Co's Return-on-Tangible-Asset or its related term are showing as below:

MSM' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 13.28   Med: 18.21   Max: 23.14
Current: 18.6

During the past 13 years, MSC Industrial Direct Co's highest Return-on-Tangible-Asset was 23.14%. The lowest was 13.28%. And the median was 18.21%.

MSM's Return-on-Tangible-Asset is ranked better than
95.17% of 145 companies
in the Industrial Distribution industry
Industry Median: 5.17 vs MSM: 18.60

MSC Industrial Direct Co Return-on-Tangible-Asset Historical Data

The historical data trend for MSC Industrial Direct Co's Return-on-Tangible-Asset 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.

* Premium members only.

MSC Industrial Direct Co Return-on-Tangible-Asset Chart

MSC Industrial Direct Co Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.20 16.11 13.28 19.02 18.96

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
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.50 22.51 20.55 16.40 14.81

Competitive Comparison of MSC Industrial Direct Co's Return-on-Tangible-Asset

For the Industrial Distribution subindustry, MSC Industrial Direct Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MSC Industrial Direct Co's Return-on-Tangible-Asset Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where MSC Industrial Direct Co's Return-on-Tangible-Asset falls into.



MSC Industrial Direct Co Return-on-Tangible-Asset Calculation

MSC Industrial Direct Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Aug. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Aug. 2023 )  (A: Aug. 2022 )(A: Aug. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Aug. 2023 )  (A: Aug. 2022 )(A: Aug. 2023 )
=343.233/( (1904.956+1715.319)/ 2 )
=343.233/1810.1375
=18.96 %

MSC Industrial Direct Co's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Feb. 2024 )  (Q: Nov. 2023 )(Q: Feb. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Feb. 2024 )  (Q: Nov. 2023 )(Q: Feb. 2024 )
=247.388/( (1668.516+1672.46)/ 2 )
=247.388/1670.488
=14.81 %

* 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.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Feb. 2024) net income data.


MSC Industrial Direct Co  (NYSE:MSM) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


MSC Industrial Direct Co Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of MSC Industrial Direct Co's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.


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

Traded in Other Exchanges
Address
515 Broadhollow Road, Suite 1000, Melville, NY, USA, 11747
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