PriceSmart Inc (PSMT)

Operating return on assets (Operating ROA)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Operating income	US$ in thousands	220,944	184,516	167,066	158,020	122,468
Total assets	US$ in thousands	2,022,690	2,005,610	1,808,400	1,705,790	1,656,820
Operating ROA		10.92%	9.20%	9.24%	9.26%	7.39%

August 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $220,944K ÷ $2,022,690K
= 10.92%

Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operating activities relative to its total assets.

Analyzing PriceSmart Inc's Operating ROA over the past five years reveals a positive trend. The ratio has shown a consistent improvement from 7.39% in 2020 to 10.92% in 2024. This indicates that the company has been able to efficiently utilize its assets to generate operating income over time.

The increasing trend in Operating ROA suggests that PriceSmart Inc has been effectively managing its operating activities and utilizing its assets more efficiently to generate higher returns. This improvement in Operating ROA is a positive sign of the company's operational performance and financial health.

Overall, PriceSmart Inc's trend of increasing Operating ROA indicates that the company has been able to improve its profitability relative to its asset base, which can be seen as a positive signal for investors and stakeholders.