PriceSmart Inc (PSMT)

Fixed asset turnover

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Revenue (ttm)	US$ in thousands	4,645,640	4,498,230	4,392,180	4,301,670	4,240,670	4,145,550	4,066,096	3,954,332	3,818,786	3,717,795	3,619,871	3,520,846	3,425,513	3,394,679	3,329,188	3,319,907	3,308,532	3,256,222	3,223,918	3,200,484
Property, plant and equipment	US$ in thousands	925,035	873,440	850,328	816,973	774,826	756,663	757,241	765,034	753,671	733,219	730,204	716,337	712,758	700,837	692,279	700,388	706,848	693,275	671,151	629,063
Fixed asset turnover		5.02	5.15	5.17	5.27	5.47	5.48	5.37	5.17	5.07	5.07	4.96	4.92	4.81	4.84	4.81	4.74	4.68	4.70	4.80	5.09

February 29, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,645,640K ÷ $925,035K
= 5.02

Fixed asset turnover is a key financial ratio that measures a company's ability to generate revenue relative to its investment in fixed assets. In the case of PriceSmart Inc, the fixed asset turnover ratio has been relatively stable over the past few years, ranging from 4.68 to 5.48. This indicates that PriceSmart has been efficient in utilizing its fixed assets to generate revenue.

The consistently high fixed asset turnover ratios suggest that PriceSmart is effectively managing and utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar invested in fixed assets, which is a positive sign of operational efficiency.

Overall, the trend of the fixed asset turnover ratio for PriceSmart Inc points towards strong asset utilization and operational efficiency, which is a positive indicator of the company's financial health and management effectiveness in utilizing its fixed assets to drive revenue growth.