PriceSmart Inc (PSMT)
Fixed asset turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,893,960 | 4,384,770 | 4,066,090 | 3,619,870 | 3,329,190 |
| Property, plant and equipment | US$ in thousands | 936,108 | 850,328 | 757,241 | 730,204 | 692,279 |
| Fixed asset turnover | 5.23 | 5.16 | 5.37 | 4.96 | 4.81 |
August 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,893,960K ÷ $936,108K
= 5.23
Fixed asset turnover is used to measure how effectively a company is utilizing its fixed assets to generate sales. PriceSmart Inc's fixed asset turnover has shown a consistent trend of improvement over the past five years.
The ratio has increased from 4.81 in 2020 to 5.23 in 2024, indicating that the company has been able to generate more sales per dollar of fixed assets invested. This suggests improved efficiency in utilizing fixed assets to drive revenue growth.
The overall upward trend in fixed asset turnover reflects positively on PriceSmart Inc's asset management efficiency and operational performance. It demonstrates the company's ability to optimize the use of its fixed assets to generate sales effectively over time.
The steady improvement in fixed asset turnover indicates that PriceSmart Inc has been successful in increasing sales relative to its investment in fixed assets, which is a positive indicator of the company's operational effectiveness and financial health.
Peer comparison
Aug 31, 2024