PriceSmart Inc (PSMT)
Total asset turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,384,770 | 4,066,090 | 3,619,870 | 3,329,190 | 3,223,920 |
| Total assets | US$ in thousands | 2,005,610 | 1,808,400 | 1,705,790 | 1,656,820 | 1,296,410 |
| Total asset turnover | 2.19 | 2.25 | 2.12 | 2.01 | 2.49 |
August 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,384,770K ÷ $2,005,610K
= 2.19
Total asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its total assets. It indicates how well a company is utilizing its assets to generate sales.
In the case of Pricesmart Inc., the total asset turnover ratio has fluctuated over the past five years, as shown in the table. The trend indicates the company's ability to generate sales from its total assets.
In 2019, Pricesmart Inc. had a total asset turnover ratio of 2.49, which means that for every dollar of total assets, the company generated $2.49 in sales. This suggests highly efficient asset utilization to drive sales.
The ratio slightly decreased to 2.01 in 2020, indicating a potential decrease in the company's ability to generate sales from its assets. However, the total asset turnover increased to 2.12 in 2021 and further to 2.25 in 2022, signaling an improvement in asset utilization efficiency.
In the latest year, 2023, the total asset turnover ratio of Pricesmart Inc. stands at 2.20. This indicates that the company is effectively generating sales from its total assets, albeit slightly lower than the previous year.
Overall, the trend in Pricesmart Inc.'s total asset turnover ratio suggests fluctuations in asset utilization efficiency, with a general indication of the company's ability to efficiently generate sales from its total assets in recent years.
Peer comparison
Aug 31, 2023