PriceSmart Inc (PSMT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	170,563	174,452	239,984	222,668	260,927	267,944	237,710	207,528	178,705	176,072	202,060	190,687	180,179	207,955	299,481	261,788	132,845	111,359	102,653	106,445
Short-term investments	US$ in thousands	93,630	88,002	91,081	112,629	54,322	8,920	11,160	19,767	26,933	39,201	50,233	67,068	81,430	73,980	46,509	40,042	30,448	25,098	17,045	17,023
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
Cash ratio		0.37	0.37	0.52	0.57	0.54	0.45	0.43	0.39	0.37	0.36	0.47	0.53	0.52	0.50	0.61	0.61	0.39	0.29	0.29	0.32

February 29, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($170,563K + $93,630K) ÷ $708,730K
= 0.37

The cash ratio of PriceSmart Inc has shown some fluctuations over the past few periods. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

Based on the data provided, the cash ratio has ranged from a low of 0.29 to a high of 0.61 over the past few periods. The cash ratio was relatively stable around 0.45 to 0.52 from May 31, 2021, to May 31, 2023, indicating a consistent ability to cover short-term liabilities with cash during that time.

However, there was a notable decrease in the cash ratio to 0.37 at the end of February 2024 compared to the previous period. This suggests a potential decrease in the company's ability to cover short-term obligations with its available cash.

Overall, while PriceSmart Inc has maintained a generally healthy cash ratio over the periods analyzed, investors and stakeholders may want to monitor the trend in the cash ratio to assess the company's liquidity position and ability to meet its short-term obligations in the future.