PriceSmart Inc (PSMT)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.18 | 1.18 | 1.18 | 1.10 | 1.20 | 1.24 | 1.19 | 1.02 | 1.10 | 1.10 | 1.07 | 0.99 | 1.25 | 3.06 | 2.98 | 2.68 | 3.21 | 3.67 | 3.05 | 2.51 |
| Receivables turnover | 259.34 | 267.97 | 234.40 | 254.93 | 245.32 | 286.19 | 258.56 | 221.01 | 303.64 | 271.42 | 254.57 | 238.75 | 292.89 | 288.10 | 288.49 | 224.07 | 253.11 | 304.97 | 303.40 | 316.35 |
| Payables turnover | 1.28 | 1.24 | 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 |
| Working capital turnover | 32.11 | 37.23 | 33.44 | 25.61 | 18.10 | 16.55 | 16.95 | 17.15 | 20.95 | 22.98 | 21.13 | 19.75 | 22.12 | 22.54 | 23.77 | 22.31 | 25.47 | 29.33 | 31.90 | 31.99 |
PriceSmart Inc's activity ratios provide insight into how efficiently the company manages its assets and liabilities to generate sales.
1. Inventory turnover: PriceSmart Inc's inventory turnover ratio has been relatively stable around 1.10 to 1.25 over the past two years, indicating that the company is effectively managing its inventory levels to meet customer demand.
2. Receivables turnover: The receivables turnover ratio for PriceSmart Inc has fluctuated significantly but generally remained high, suggesting that the company is efficient in collecting payments from its customers, with an increasing trend seen over the past few quarters.
3. Payables turnover: The payables turnover ratio for PriceSmart Inc has also shown stability, ranging from 1.11 to 1.32. This indicates that the company is managing its accounts payable effectively by paying its suppliers in a timely manner.
4. Working capital turnover: The working capital turnover ratio has shown an increasing trend over the past quarters, indicating that PriceSmart Inc is effectively utilizing its working capital to generate sales. This suggests improved efficiency in utilizing current assets to finance operations.
Overall, PriceSmart Inc's activity ratios reflect a generally efficient management of assets and liabilities to drive sales and support business operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 309.82 | 308.34 | 309.49 | 333.28 | 304.34 | 294.03 | 305.68 | 357.98 | 330.46 | 331.43 | 340.98 | 367.45 | 292.06 | 119.38 | 122.64 | 136.27 | 113.83 | 99.56 | 119.67 | 145.39 |
| Days of sales outstanding (DSO) | days | 1.41 | 1.36 | 1.56 | 1.43 | 1.49 | 1.28 | 1.41 | 1.65 | 1.20 | 1.34 | 1.43 | 1.53 | 1.25 | 1.27 | 1.27 | 1.63 | 1.44 | 1.20 | 1.20 | 1.15 |
| Number of days of payables | days | 284.78 | 293.26 | 312.44 | 328.67 | 292.60 | 277.17 | 276.74 | 313.42 | 290.61 | 282.95 | 276.07 | 338.30 | 291.37 | 120.92 | 121.41 | 140.26 | 137.24 | 104.85 | 104.14 | 123.10 |
Based on the activity ratios provided for PriceSmart Inc, we can observe the following trends:
1. Days of Inventory on Hand (DOH):
- The trend in DOH has been fluctuating over the past few years, with some periods showing a significant increase followed by a decrease.
- In the most recent period of Aug 31, 2024, the DOH stands at 309.82 days, indicating that the company takes approximately 309.82 days to sell its inventory.
- The company has shown a longer holding period for inventory in some periods, which may suggest potential inefficiencies in inventory management.
2. Days of Sales Outstanding (DSO):
- The DSO for PriceSmart Inc has generally been low, indicating that the company collects its accounts receivable quickly.
- The DSO has been relatively stable in recent periods, with values ranging from 1.20 days to 1.65 days.
- A low DSO reflects the company's efficient credit and collection processes.
3. Number of Days of Payables:
- The trend in the number of days of payables has also been fluctuating, with periods of increase and decrease.
- In the most recent period of Aug 31, 2024, the company takes approximately 284.78 days to pay its payables.
- The company has shown variations in its payment period, potentially impacting its relationships with suppliers.
In summary, PriceSmart Inc's activity ratios suggest that the company manages its inventory efficiently, collects its accounts receivable quickly, and has variable payment terms with its suppliers. Monitoring these ratios over time can provide insights into the company's operational efficiency and liquidity management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 2.42 | 2.37 | 2.28 | 2.22 | 2.19 | 2.22 | 2.25 | 2.20 | 2.25 | 2.21 | 2.15 | 2.08 | 2.12 | 2.16 | 2.10 | 2.02 | 2.01 | 2.11 | 2.21 | 2.14 |
PriceSmart Inc has shown consistent and healthy performance in terms of its long-term activity ratios over the past several quarters. The fixed asset turnover ratio has been relatively stable, ranging between 4.68 and 5.48. This indicates the company's efficiency in generating sales revenue from its fixed assets, with a generally increasing trend over the periods analyzed.
Moreover, the total asset turnover ratio has also remained steady, fluctuating between 2.01 and 2.42. This ratio reflects PriceSmart's ability to generate sales relative to its total assets, and the company has maintained a strong performance in utilizing its assets efficiently to drive revenue growth.
Overall, the long-term activity ratios suggest that PriceSmart Inc has been effectively managing its assets to generate sales, with a trend of improving efficiency over time, as indicated by the increasing fixed asset turnover ratio. The company's ability to generate sales relative to both fixed and total assets indicates effective asset utilization and operational performance.