PriceSmart Inc (PSMT)

Total asset 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
Total assets	US$ in thousands	2,022,690	2,020,700	2,036,780	2,029,280	2,005,610	1,933,350	1,886,170	1,887,920	1,808,400	1,791,760	1,773,330	1,789,310	1,705,790	1,631,960	1,630,840	1,678,000	1,656,820	1,574,490	1,498,290	1,524,110
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

August 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,887,840K ÷ $2,022,690K
= 2.42

PriceSmart Inc's total asset turnover ratio has been relatively stable over the past 20 quarters, ranging from 2.01 to 2.42. This ratio indicates that, on average, the company generated approximately $2.20 in revenue for every dollar of assets during this period. The consistency in total asset turnover suggests that PriceSmart has been effectively utilizing its assets to generate sales. However, a declining trend in this ratio may signal inefficiencies in asset management or a slowdown in revenue generation. Overall, a total asset turnover ratio above 1 indicates efficient asset utilization, with higher ratios generally being more favorable, reflecting better performance in generating sales relative to the size of the asset base.