PriceSmart Inc (PSMT)
Number of days of payables
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 1.28 | 1.25 | 1.26 | 1.25 | 8.59 | |
| Number of days of payables | days | 284.78 | 292.60 | 290.61 | 291.37 | 42.47 |
August 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.28
= 284.78
The number of days of payables for PriceSmart Inc has shown a fluctuating trend over the past five years, ranging from as low as 42.47 days in 2020 to as high as 292.60 days in 2023. In the most recent fiscal year ending on August 31, 2024, the number of days of payables decreased to 284.78 days, indicating that the company is taking slightly longer to pay its suppliers compared to the previous year.
A high number of days of payables suggests that the company is taking longer to settle its outstanding invoices with suppliers, potentially indicating a cash flow advantage by delaying payments. Conversely, a low number of days of payables could suggest efficient management of payables.
It is important to analyze this ratio in conjunction with other liquidity and efficiency ratios to get a more comprehensive view of the company's financial health and operational efficiency. Further investigation into the underlying reasons for changes in the number of days of payables can provide insight into the company's working capital management and overall financial performance.
Peer comparison
Aug 31, 2024