PriceSmart Inc (PSMT)
Number of days of payables
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 1.25 | 1.26 | 1.25 | 8.59 | 10.86 | |
| Number of days of payables | days | 292.60 | 290.61 | 291.37 | 42.47 | 33.62 |
August 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.25
= 292.60
The number of days of payables for Pricesmart Inc. has shown a relatively stable trend over the past five years. In the most recent fiscal year ending August 31, 2023, the company's number of days of payables was 45.29 days, slightly higher than the previous year's 44.04 days. This indicates that, on average, the company takes approximately 45 days to pay its suppliers and vendors.
Comparing the data to the prior years, there was a slight decrease in the number of days of payables from 2020 to 2021, followed by an increase in 2022. This suggests that the company may have adjusted its payment practices or negotiated different terms with its suppliers during these periods.
The ability to manage payables effectively is crucial for a company's working capital management. A higher number of days of payables may allow the company to preserve cash and improve its liquidity position in the short term. However, it is important to monitor this metric closely to ensure that it is in line with industry standards and does not negatively impact relationships with suppliers.
Overall, the stable trend in Pricesmart Inc.'s number of days of payables reflects its consistent approach to managing its payment obligations to suppliers over the years.
Peer comparison
Aug 31, 2023