PriceSmart Inc (PSMT)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	197,020	187,202	184,516	191,344	182,054	176,576	167,066	160,562	162,849	159,506	158,020	154,537	142,455	136,285	122,468	125,454	123,484	121,211	115,167	110,396
Revenue (ttm)	US$ in thousands	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	3,223,918	3,200,484
Operating profit margin		4.24%	4.16%	4.20%	4.45%	4.29%	4.26%	4.11%	4.06%	4.26%	4.29%	4.37%	4.39%	4.16%	4.01%	3.68%	3.78%	3.73%	3.72%	3.57%	3.45%

February 29, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $197,020K ÷ $4,645,640K
= 4.24%

The operating profit margin of PriceSmart Inc has been relatively stable over the past few quarters, ranging between 3.45% and 4.45%. This indicates that the company has been able to consistently generate profits from its core operations after accounting for both variable and fixed costs. The trend shows a slight fluctuation, with the margin peaking at 4.45% in May 2023 and hitting a low of 3.45% in May 2019. Overall, the company has managed to maintain an average operating profit margin of around 4% over the periods analyzed, suggesting efficient cost management and a healthy business performance.