PriceSmart Inc (PSMT)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	4,887,840	4,781,180	4,645,640	4,498,230	4,392,180	4,301,670	4,240,670	4,145,550	4,066,096	3,954,332	3,818,786	3,717,795	3,619,871	3,520,846	3,425,513	3,394,679	3,329,188	3,319,907	3,308,532	3,256,222
Receivables	US$ in thousands	18,847	17,842	19,819	17,645	17,904	15,031	16,401	18,757	13,391	14,569	15,001	15,572	12,359	12,221	11,874	15,150	13,153	10,886	10,905	10,293
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

August 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,887,840K ÷ $18,847K
= 259.34

The receivables turnover ratio for PriceSmart Inc has shown fluctuating trends over the past several reporting periods. The ratio indicates how efficiently the company is collecting its accounts receivable during a specific period.

From Nov 30, 2019, to Aug 31, 2024, the receivables turnover ratio has varied between a low of 221.01 to a high of 316.35. The highest turnover ratio of 316.35 was observed in Feb 29, 2020, suggesting that PriceSmart Inc was collecting its receivables at a faster rate during that period.

On average, a higher turnover ratio implies that the company is effectively managing its accounts receivable and collecting payments from customers promptly. Conversely, a lower turnover ratio can indicate issues with collections or potentially overly strict credit policies that may be impacting sales.

Overall, it is essential for PriceSmart Inc to monitor its receivables turnover ratio consistently to ensure the efficient management of accounts receivable and maintain healthy cash flows.