PriceSmart Inc (PSMT)

Current 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
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
Current ratio		1.20	1.25	1.38	1.44	1.43	1.40	1.34	1.30	1.32	1.32	1.31	1.32	1.29	1.27	1.23	1.23	1.25	1.22	1.21	1.28

February 29, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $847,652K ÷ $708,730K
= 1.20

The current ratio of PriceSmart Inc has fluctuated over the past few years, ranging from 1.20 to 1.44. The current ratio indicates the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 signifies that PriceSmart Inc has more current assets than current liabilities, which is generally considered a positive sign of financial health.

The current ratio has remained relatively stable around 1.30 in recent years, indicating a consistent ability to meet short-term obligations. However, there was a slight decrease in the ratio in the most recent period, dropping to 1.20, which may raise some concerns about the company's short-term liquidity position. It is important for PriceSmart Inc to closely monitor its current assets and liabilities to ensure it can continue to meet its short-term financial obligations.