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MSM (MSC Industrial Direct Co) Degree of Operating Leverage : 5.05 (As of Feb. 2025)


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What is MSC Industrial Direct Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. MSC Industrial Direct Co's Degree of Operating Leverage for the quarter that ended in Feb. 2025 was 5.05. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for MSC Industrial Direct Co's Degree of Operating Leverage or its related term are showing as below:

MSM's Degree of Operating Leverage is ranked worse than
76.67% of 150 companies
in the Industrial Distribution industry
Industry Median: 1.09 vs MSM: 5.05

MSC Industrial Direct Co Degree of Operating Leverage Historical Data

The historical data trend for MSC Industrial Direct Co's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

MSC Industrial Direct Co Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.41 -8.60 3.96 0.25 4.90

MSC Industrial Direct Co Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Degree of Operating Leverage 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 -7.06 8.30 4.90 5.05 5.05

Competitive Comparison of MSC Industrial Direct Co's Degree of Operating Leverage

For the Industrial Distribution subindustry, MSC Industrial Direct Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, MSC Industrial Direct Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where MSC Industrial Direct Co's Degree of Operating Leverage falls into.


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MSC Industrial Direct Co Degree of Operating Leverage Calculation

MSC Industrial Direct Co's Degree of Operating Leverage for the quarter that ended in Feb. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 309.591 (Feb. 2025) / 435.339 (Feb. 2024) - 1 )/( 3751.835 (Feb. 2025) / 3979.222 (Feb. 2024) - 1 )
=-0.2889/-0.0571
=5.05***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


MSC Industrial Direct Co  (NYSE:MSM) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


MSC Industrial Direct Co Degree of Operating Leverage Related Terms

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


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 14 fulfillment or regional inventory centers. Although MSC has a presence in Canada, Mexico, and the United Kingdom, it primarily operates in the United States. In fiscal 2024, 95% of the firm's $3.8 billion of sales was generated in the US.
Executives
Mitchell Jacobson director, 10 percent owner, officer: Chairman and CEO C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS RD, MELVILLE NY 11747
Philip Peller director
Erik Gershwind officer: SVP, Product Mgmnt & Marketing C/O MSC INDUSTRIAL 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
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
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
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