PriceSmart Inc (PSMT)

Working capital turnover

		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	Aug 31, 2019	May 31, 2019
Revenue (ttm)	US$ in thousands	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	3,223,918	3,200,484
Total current assets	US$ in thousands	847,652	880,835	877,107	847,190	836,771	853,285	773,579	749,871	741,280	782,416	697,204	639,214	645,739	710,551	699,002	606,454	525,555	571,877	491,896	500,520
Total current liabilities	US$ in thousands	708,730	705,197	634,477	587,265	586,583	611,558	579,456	577,757	560,555	594,154	533,552	482,996	501,601	558,397	568,275	493,249	421,844	470,076	407,454	390,280
Working capital turnover		33.44	25.61	18.10	16.55	16.95	17.15	20.95	22.98	21.13	19.75	22.12	22.54	23.77	22.31	25.47	29.33	31.90	31.99	38.18	29.03

February 29, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,645,640K ÷ ($847,652K – $708,730K)
= 33.44

The working capital turnover ratio for PriceSmart Inc has shown fluctuations over the various periods. The working capital turnover measures how efficiently the company is utilizing its working capital to generate revenue.

During the most recent period ending on February 29, 2024, the working capital turnover was 33.44, indicating that PriceSmart Inc generated $33.44 in revenue for every $1 of working capital invested. This suggests a high level of efficiency in utilizing working capital.

The working capital turnover ratio has varied over the historical periods, with values ranging from a low of 16.55 to a high of 33.44. This indicates some volatility in the company's ability to efficiently manage its working capital in generating sales revenue.

Overall, the trend in the working capital turnover ratio for PriceSmart Inc appears to show some fluctuations, but it is essential to analyze the underlying reasons for these variations to determine the effectiveness of the company's working capital management strategies.