PriceSmart Inc (PSMT)

Receivables turnover

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Revenue	US$ in thousands	4,893,960	4,384,770	4,066,090	3,619,870	3,329,190
Receivables	US$ in thousands	18,847	17,904	13,391	12,359	13,153
Receivables turnover		259.67	244.90	303.64	292.89	253.11

August 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,893,960K ÷ $18,847K
= 259.67

Based on the data provided for PriceSmart Inc's receivables turnover over the past five years, the company has shown a consistent trend of efficiently managing its accounts receivables. The receivables turnover ratios have been relatively high, indicating that PriceSmart is collecting its accounts receivables quickly.

In particular, there was a slight decrease in receivables turnover from 2022 to 2023, followed by an increase in 2024. This suggests that the company may have improved its collection process in the most recent year.

Overall, PriceSmart's ability to turn its accounts receivables into cash has been strong over the past five years, reflecting effective credit control and collection efforts. However, it is essential for the company to continue monitoring and managing its accounts receivables to ensure consistent and efficient cash flow.