PriceSmart Inc (PSMT)

Operating 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
Operating income (ttm)	US$ in thousands	220,944	203,877	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
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
Operating profit margin		4.52%	4.26%	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%

August 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $220,944K ÷ $4,887,840K
= 4.52%

PriceSmart Inc's operating profit margin has shown relatively stable performance over the past few years, fluctuating within a narrow range between 4.01% and 4.52%. The company has maintained an average operating profit margin of around 4.25% during the period under review. This indicates that PriceSmart Inc is effectively managing its operating expenses and generating a consistent level of profit relative to its sales.

The consistency in operating profit margin suggests that the company has been able to control costs and maintain profitability despite changes in economic conditions or business cycles. However, there may be opportunities for PriceSmart Inc to further optimize its operations and improve profitability by focusing on efficiency and productivity enhancements.

Overall, PriceSmart Inc's operating profit margin demonstrates stability and a consistent ability to generate profit from its core business operations.