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MSC Industrial Direct Co Asset Turnover

: 0.37 (As of May. 2019)
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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. MSC Industrial Direct Co's Revenue for the three months ended in May. 2019 was USD 867 Mil. MSC Industrial Direct Co's Total Assets for the quarter that ended in May. 2019 was USD 2,341 Mil. Therefore, MSC Industrial Direct Co's asset turnover for the quarter that ended in May. 2019 was 0.37.

Asset Turnover is linked to ROE % through Du Pont Formula. MSC Industrial Direct Co's annualized ROE % for the quarter that ended in May. 2019 was 22.35%. It is also linked to ROA % through Du Pont Formula. MSC Industrial Direct Co's annualized ROA % for the quarter that ended in May. 2019 was 13.60%.


MSC Industrial Direct Co Asset Turnover 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
Asset Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.39 1.40 1.38 1.39 1.46

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
Asset Turnover 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 0.38 0.37 0.37 0.36 0.37

MSC Industrial Direct Co Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

MSC Industrial Direct Co's Asset Turnover for the fiscal year that ended in Aug. 2018 is calculated as

Asset Turnover
=Sales/Average Total Assets
=Revenue (A: Aug. 2018 )/( (Total Assets (A: Aug. 2017 )+Total Assets (A: Aug. 2018 ))/ 2 )
=3203.878/( (2098.912+2288.727)/ 2 )
=3203.878/2193.8195
=1.46

MSC Industrial Direct Co's Asset Turnover for the quarter that ended in May. 2019 is calculated as

Asset Turnover
=Sales/Average Total Assets
=Revenue (Q: May. 2019 )/( (Total Assets (Q: Feb. 2019 )+Total Assets (Q: May. 2019 ))/ 2 )
=866.546/( (2358.116+2324.348)/ 2 )
=866.546/2341.232
=0.37

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

Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Companies in the retail industry tend to have a very high turnover ratio.


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

Asset Turnover is linked to Return on Equity (ROE) through Du Pont Formula.

MSC Industrial Direct Co's annulized ROE % for the quarter that ended in May. 2019 is

ROE %(Q: May. 2019 )
=Net Income/Total Stockholders Equity
=318.404/1424.343
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(318.404 / 3466.184)*(3466.184 / 2341.232)*(2341.232/ 1424.343)
=Net Margin %*Asset Turnover*Leverage Ratio
=9.19 %*1.4805*1.6437
=ROA %*Leverage Ratio
=13.60 %*1.6437
=22.35 %

Note: The Net Income data used here is four times the quarterly (May. 2019) net income data. The Revenue data used here is four times the quarterly (May. 2019) revenue data.

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

It is also linked to Return on Assets (ROA) through Du Pont Formula:

MSC Industrial Direct Co's annulized ROA % for the quarter that ended in May. 2019 is

ROA %(Q: May. 2019 )
=Net Income/Total Assets
=318.404/2341.232
=(Net Income / Revenue)*(Revenue / Total Assets)
=(318.404 / 3466.184)*(3466.184 / 2341.232)
=Net Margin %*Asset Turnover
=9.19 %*1.4805
=13.60 %

Note: The Net Income data used here is four times the quarterly (May. 2019) net income data. The Revenue data used here is four times the quarterly (May. 2019) revenue data.

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


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's asset turnover is consistent or even increases. If a company's asset grows faster than sales, its asset turnover will decline, which can be a warning sign.


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