PriceSmart Inc (PSMT)

Fixed asset turnover

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Revenue	US$ in thousands	4,384,770	4,066,090	3,619,870	3,329,190	3,223,920
Property, plant and equipment	US$ in thousands	850,328	757,241	730,204	692,279	671,151
Fixed asset turnover		5.16	5.37	4.96	4.81	4.80

August 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,384,770K ÷ $850,328K
= 5.16

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate sales. Pricesmart Inc.'s fixed asset turnover has been relatively stable over the past five years, ranging from 4.80 to 5.37. This indicates that the company has been effectively utilizing its fixed assets to generate sales. The slight fluctuations in the ratio suggest that there have been some changes in the company's asset management efficiency, but overall, the trend has been positive. The consistently high fixed asset turnover ratio reflects the company's ability to generate a significant level of sales in relation to its investment in fixed assets, signaling strong operational efficiency.