PriceSmart Inc (PSMT)

Quick 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	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
Receivables	US$ in thousands	18,847	17,842	19,819	17,645	17,904	15,031	16,401	18,757	13,391	14,569	15,001	15,572	12,359	12,221	11,874	15,150	13,153	10,886	10,905	10,293
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
Quick ratio		0.36	0.35	0.40	0.40	0.55	0.60	0.57	0.48	0.45	0.42	0.39	0.39	0.50	0.56	0.55	0.53	0.63	0.63	0.41	0.31

August 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($125,364K + $100,165K + $18,847K) ÷ $680,148K
= 0.36

The quick ratio of PriceSmart Inc has shown some variability over the past few years. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates potential liquidity issues.

From November 2019 to August 2020, the quick ratio fluctuated between 0.31 and 0.63, showing some inconsistency in the company's ability to cover its short-term liabilities with its quick assets. From August 2020 to May 2021, the ratio remained relatively stable, ranging from 0.50 to 0.56, indicating improved liquidity.

However, the quick ratio dropped to 0.39 in August 2021 and remained around this level until May 2022, signaling potential challenges in meeting short-term obligations with liquid assets during this period. From May 2022 to February 2023, the ratio improved to 0.60 before decreasing to 0.55 in August 2023, showcasing some volatility.

Between August 2023 and August 2024, the quick ratio declined consistently from 0.55 to 0.36, indicating a possible decrease in the company's ability to cover immediate liabilities with its quick assets. Overall, the trend suggests that PriceSmart Inc may have faced liquidity challenges and fluctuations in its ability to meet short-term obligations during the analyzed period.