PriceSmart Inc (PSMT)
Total asset 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 |
| Total assets | US$ in thousands | 2,022,690 | 2,005,610 | 1,808,400 | 1,705,790 | 1,656,820 |
| Total asset turnover | 2.42 | 2.19 | 2.25 | 2.12 | 2.01 |
August 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,893,960K ÷ $2,022,690K
= 2.42
The total asset turnover ratio for PriceSmart Inc has shown a generally increasing trend over the past five years, from 2.01 in 2020 to 2.42 in 2024. This indicates that the company is becoming more efficient in generating sales revenue relative to its total assets. A higher total asset turnover ratio suggests that PriceSmart is effectively utilizing its assets to generate sales, which is a positive sign of operational efficiency. This could be indicative of effective management of inventory, strong sales performance, or efficient use of assets within the organization. Overall, the increasing trend in total asset turnover reflects improved asset utilization and operational efficiency within PriceSmart Inc over the analyzed period.
Peer comparison
Aug 31, 2024