PriceSmart Inc (PSMT)
Current ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 832,347 | 877,107 | 773,579 | 697,204 | 699,002 |
| Total current liabilities | US$ in thousands | 680,148 | 634,477 | 579,456 | 533,552 | 568,275 |
| Current ratio | 1.22 | 1.38 | 1.34 | 1.31 | 1.23 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $832,347K ÷ $680,148K
= 1.22
The current ratio of PriceSmart Inc has fluctuated over the past five years. In 2024, the current ratio stands at 1.22, lower than the ratios seen in the previous three years, indicating that the company may be facing some liquidity challenges. A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations with its current assets.
In 2023, the current ratio was relatively high at 1.38, indicating a healthier liquidity position compared to 2024. The company was better positioned to cover its short-term liabilities with its current assets in 2023.
In 2022 and 2021, the current ratio was 1.34 and 1.31, respectively, showing a stable liquidity position over these two years, with the company having sufficient current assets to cover its short-term liabilities.
In 2020, the current ratio was 1.23, slightly lower than in 2022 and 2021 but higher than in 2024. This suggests that the company's liquidity position was relatively stable in 2020, despite being slightly weaker than in the following years.
Overall, the fluctuation in PriceSmart Inc's current ratio over the past five years indicates varying levels of liquidity and the company's ability to meet its short-term obligations with its current assets.
Peer comparison
Aug 31, 2024