PriceSmart Inc (PSMT)

Payables 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
Cost of revenue (ttm)	US$ in thousands	592,389	580,323	565,367	549,414	536,255	520,062	512,959	507,649	503,446	497,434	487,041	1,029,319	1,009,612	999,539	992,443	985,307	985,230	974,260	970,560	957,595
Payables	US$ in thousands	507,077	522,568	453,229	417,210	406,581	446,572	408,407	393,536	380,778	461,046	388,791	341,007	335,821	384,086	373,172	283,045	281,098	328,585	286,219	271,298
Payables turnover		1.17	1.11	1.25	1.32	1.32	1.16	1.26	1.29	1.32	1.08	1.25	3.02	3.01	2.60	2.66	3.48	3.50	2.97	3.39	3.53

February 29, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $592,389K ÷ $507,077K
= 1.17

The payables turnover ratio for PriceSmart Inc has shown some fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a period.

Looking at the data, we can see that the payables turnover ratio has ranged from 1.08 to 3.53 over the past few quarters. A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which can be a positive sign of strong liquidity and effective cash management.

In the most recent quarter, the payables turnover ratio was 1.17, which indicates that PriceSmart Inc is paying its suppliers approximately 1.17 times during that period. While this ratio has been relatively stable in recent quarters, it would be beneficial to monitor any significant shifts in the ratio over time to assess the company's ability to manage its payables effectively.