PriceSmart Inc (PSMT)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	4,265,020	4,169,835	4,053,264	3,917,918	3,826,816	3,752,257	3,704,412	3,625,481	3,553,134	3,446,680	3,315,337	3,220,361	3,132,830	2,491,527	2,415,901	2,395,140	2,336,745	2,334,600	2,323,302	2,281,962
Revenue (ttm)	US$ in thousands	4,887,840	4,781,180	4,645,640	4,498,230	4,392,180	4,301,670	4,240,670	4,145,550	4,066,096	3,954,332	3,818,786	3,717,795	3,619,871	3,520,846	3,425,513	3,394,679	3,329,188	3,319,907	3,308,532	3,256,222
Gross profit margin		87.26%	87.21%	87.25%	87.10%	87.13%	87.23%	87.35%	87.45%	87.38%	87.16%	86.82%	86.62%	86.55%	70.77%	70.53%	70.56%	70.19%	70.32%	70.22%	70.08%

August 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $4,265,020K ÷ $4,887,840K
= 87.26%

The gross profit margin of PriceSmart Inc has shown relatively stable and consistently high performance over the past several quarters. The company's gross profit margin has ranged between 86.55% to 87.45% throughout the last two years, indicating strong control over production costs and efficient pricing strategies.

The slight fluctuations in the gross profit margin may be attributed to various factors such as changes in input costs, pricing decisions, or sales mix. However, overall, PriceSmart Inc has maintained a robust gross profit margin above 70% consistently, reflecting the company's ability to generate substantial profits from its core operations.

Investors and stakeholders can take confidence in PriceSmart Inc's ability to effectively manage its cost of goods sold and optimize its pricing strategies to maintain healthy profit margins. It suggests the company's competitive positioning and operational efficiency in the retail industry.