PriceSmart Inc (PSMT)

Pretax margin

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	201,493	169,156	156,392	146,932	115,873
Revenue	US$ in thousands	4,893,960	4,384,770	4,066,090	3,619,870	3,329,190
Pretax margin		4.12%	3.86%	3.85%	4.06%	3.48%

August 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $201,493K ÷ $4,893,960K
= 4.12%

PriceSmart Inc's pretax margin has shown a gradual improvement over the past five years, with the pretax margin increasing from 3.48% in 2020 to 4.12% in 2024. This indicates that the company's ability to generate profits before taxes has been strengthening. Despite some fluctuations in the intervening years, the overall trend reflects a positive trajectory in the company's profitability. Maintaining and potentially further improving this metric could be beneficial for PriceSmart Inc's financial performance and shareholder value in the future.