PriceSmart Inc (PSMT)

Fixed asset turnover

		Aug 31, 2024	May 31, 2024	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
Revenue (ttm)	US$ in thousands	4,887,840	4,781,180	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
Property, plant and equipment	US$ in thousands	936,108	938,336	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
Fixed asset turnover		5.22	5.10	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

August 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,887,840K ÷ $936,108K
= 5.22

PriceSmart Inc has displayed a consistently high fixed asset turnover ratio over the past several quarters, indicating the company's efficiency in generating sales relative to its investment in fixed assets. The ratio has ranged between 4.68 and 5.48 over the past 8 quarters, with an average of approximately 5.12. This suggests that, on average, PriceSmart Inc generates $5.12 in sales for every dollar invested in fixed assets.

The company's ability to effectively utilize its fixed assets to drive revenue is commendable, as a higher fixed asset turnover ratio typically signifies efficient asset management and effective asset utilization. PriceSmart Inc's consistent performance in this metric underscores its operational effectiveness in maximizing the productivity of its fixed assets. Overall, the trend of high and stable fixed asset turnover ratios indicates that PriceSmart Inc is effectively leveraging its fixed assets to drive sales and generate value for its shareholders.