PriceSmart Inc (PSMT)

Working capital 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 current assets	US$ in thousands	832,347	822,828	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
Total current liabilities	US$ in thousands	680,148	694,391	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
Working capital turnover		32.11	37.23	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

August 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,887,840K ÷ ($832,347K – $680,148K)
= 32.11

The working capital turnover ratio for PriceSmart Inc has shown fluctuations over the past 20 quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales.

In the most recent quarter, the working capital turnover was 32.11, which suggests that PriceSmart Inc generated $32.11 in sales for every dollar of working capital invested. This is an improvement from the previous quarter, where the ratio was 25.61, indicating that the company was able to generate more sales per dollar of working capital.

Looking at the trend over the past two years, there seems to be a general increasing trend in the working capital turnover ratio, reaching a peak of 37.23 in the second quarter of 2024. This indicates that PriceSmart Inc has been able to effectively manage its working capital to support its sales growth.

Overall, the increasing trend in the working capital turnover ratio reflects positively on PriceSmart Inc's ability to efficiently utilize its working capital to drive sales, which is a key indicator of financial health and operational efficiency.