PriceSmart Inc (PSMT)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 87.27% | 87.11% | 87.38% | 86.55% | 3.67% |
| Operating profit margin | 4.51% | 4.21% | 4.11% | 4.37% | 3.68% |
| Pretax margin | 4.12% | 3.86% | 3.85% | 4.06% | 3.48% |
| Net profit margin | 2.84% | 2.49% | 2.57% | 2.71% | 2.35% |
PriceSmart Inc has shown a consistently strong gross profit margin over the past five years, indicating efficient management of production costs. The operating profit margin has also been stable, with a slight increase over the years, reflecting the company's ability to control its operating expenses and generate profits from its core business activities.
The pretax margin has shown a modest upward trend, indicating that PriceSmart has been able to effectively manage its pre-tax earnings relative to its total revenue. Similarly, the net profit margin has also shown a gradual improvement over the years, indicating the company's ability to increase profitability after accounting for all expenses including interest and taxes.
Overall, PriceSmart Inc's profitability ratios suggest a positive and stable financial performance over the past five years, with consistent improvements in operating efficiency and profitability.
Return on investment
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.92% | 9.20% | 9.24% | 9.26% | 7.39% |
| Return on assets (ROA) | 6.87% | 5.44% | 5.78% | 5.74% | 4.71% |
| Return on total capital | 18.15% | 14.69% | 15.17% | 15.03% | 13.08% |
| Return on equity (ROE) | 12.37% | 9.86% | 10.55% | 10.70% | 9.39% |
Based on the profitability ratios of PriceSmart Inc for the past five years, we can observe a positive trend in profitability performance.
1. Operating return on assets (Operating ROA) has shown a consistent improvement from 7.39% in 2020 to 10.92% in 2024. This indicates that the company's operating efficiency in generating profits from its assets has been increasing over the years.
2. Return on assets (ROA) has also displayed a gradual increase from 4.71% in 2020 to 6.87% in 2024. This metric reflects the overall efficiency of the company in utilizing its assets to generate profits.
3. Return on total capital has shown a positive trend, reaching 18.15% in 2024 from 13.08% in 2020. This indicates the company's ability to generate returns from both equity and debt capital employed in its operations.
4. Return on equity (ROE) has also demonstrated an upward trajectory, improving from 9.39% in 2020 to 12.37% in 2024. This ratio shows how effectively the company is utilizing shareholder equity to generate profits.
Overall, the profitability ratios of PriceSmart Inc reflect a consistent improvement in performance over the past five years, indicating efficient management of assets and capital to drive profitability. This positive trend is favorable for investors and stakeholders, showcasing the company's ability to generate returns on investments.