PriceSmart Inc (PSMT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	125,364	128,271	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
Short-term investments	US$ in thousands	100,165	99,904	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
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
Cash ratio		0.33	0.33	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

August 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($125,364K + $100,165K) ÷ $680,148K
= 0.33

The cash ratio for PriceSmart Inc has shown some fluctuations over the past few years, ranging from a low of 0.29 to a high of 0.61. The ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In recent periods, there has been an increasing trend in the cash ratio, reaching values of 0.52 to 0.61, suggesting that PriceSmart Inc has been improving its liquidity position and may be better positioned to meet its short-term obligations.

However, it is important to note that the cash ratio is just one measure of liquidity and should be analyzed in conjunction with other financial ratios and metrics to gain a comprehensive understanding of PriceSmart Inc's financial health and liquidity management.