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MSC Industrial Direct Co Return-on-Tangible-Equity

: 50.88%% (As of May. 2019)
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Return on tangible equity is calculated as Net Income attributable to Common Stockholders divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. MSC Industrial Direct Co's annualized net income attributable to common stockholders for the quarter that ended in May. 2019 was $318 Mil. MSC Industrial Direct Co's average shareholder tangible equity for the quarter that ended in May. 2019 was $626 Mil. Therefore, MSC Industrial Direct Co's annualized return on tangible equity (ROTE) for the quarter that ended in May. 2019 was 50.88 %%.

NYSE:MSM' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 28.44   Max: 61.44
Current: 48.76

28.44
61.44

During the past 13 years, MSC Industrial Direct Co's highest Return on Tangible Equity (ROTE) was 61.44%. The lowest was 28.44%. And the median was 36.51%.

NYSE:MSM's Return-on-Tangible-Equity is ranked higher than
87% of the 150 Companies
in the Industrial Distribution industry.

( Industry Median: 11.32 vs. NYSE:MSM: 48.76 )

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

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

MSC Industrial Direct Co Annual Data

Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.21 37.91 48.06 54.31 61.44

MSC Industrial Direct Co Quarterly Data

Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19
Return-on-Tangible-Equity 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 Premium Member Only Premium Member Only Premium Member Only 52.37 48.83 50.69 46.31 50.88

Competitive Comparison
* 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.


MSC Industrial Direct Co Return-on-Tangible-Equity Distribution

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



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

MSC Industrial Direct Co's annualized Return on Tangible Equity (ROTE) for the fiscal year that ended in Aug. 2018 is calculated as

ROTE=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(A: Aug. 2018 )  (A: Aug. 2017 )(A: Aug. 2018 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ 2 )
(A: Aug. 2018 )  (A: Aug. 2017 )(A: Aug. 2018 )
=328.843/( (480.983+589.532 )/ 2 )
=328.843/535.2575
=61.44 % %

MSC Industrial Direct Co's annualized Return on Tangible Equity (ROTE) for the quarter that ended in May. 2019 is calculated as

ROTE=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(Q: May. 2019 )  (Q: Feb. 2019 )(Q: May. 2019 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ 2 )
(Q: May. 2019 )  (Q: Feb. 2019 )(Q: May. 2019 )
=318.404/( (599.68+651.82)/ 2 )
=318.404/625.75
=50.88 % %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual return on tangible equity, the net income attributable to common stockholders of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (May. 2019) net income attributable to common stockholders data. Return on Equity is displayed in the 10-year financial page.


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

Return on Tangible Equity (ROTE) measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). ROTE shows how well a company uses investment funds to generate earnings growth. ROTEs between 15% and 20% are considered desirable.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its return on tangible equity by having more financial leverage, it is important to watch the leverage ratio when investing in high ROTE companies. Like Return-on-Tangible-Asset, ROTE is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROTEs can be extremely high.


MSC Industrial Direct Co Return-on-Tangible-Equity Explanation

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