PriceSmart Inc (PSMT)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	2,022,690	2,020,700	2,036,780	2,029,280	2,005,610	1,933,350	1,886,170	1,887,920	1,808,400	1,791,760	1,773,330	1,789,310	1,705,790	1,631,960	1,630,840	1,678,000	1,656,820	1,574,490	1,498,290	1,524,110
Operating ROA		10.92%	10.09%	9.67%	9.23%	9.20%	9.90%	9.65%	9.35%	9.24%	8.96%	9.18%	8.91%	9.26%	9.47%	8.74%	8.12%	7.39%	7.97%	8.24%	7.95%

August 31, 2024 calculation

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

PriceSmart Inc's operating return on assets (ROA) has shown a relatively stable trend over the past few quarters, ranging from 7.39% to 10.92%. The operating ROA indicates the company's ability to generate operating profits relative to its assets.

The upward trend from 7.39% in November 2020 to 10.92% in August 2024 reflects an improvement in the company's operational efficiency and profitability. This increase suggests that PriceSmart is effectively utilizing its assets to generate operating income.

Although there have been fluctuations in the operating ROA over this period, the general trend indicates that PriceSmart has been able to maintain a healthy level of profitability relative to its asset base. This could be attributed to effective cost management, improved sales performance, or operational efficiency initiatives within the company.

Overall, PriceSmart's operating ROA performance highlights its ability to generate profits from its asset base and suggests a positive outlook for the company's financial health and operational efficiency. The consistent improvement in the operating ROA over the past few quarters indicates a positive trend in the company's profitability and operational performance.