PriceSmart Inc (PSMT)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	201,493	190,387	185,006	176,025	169,156	173,904	161,347	159,398	156,392	151,124	154,701	151,902	146,932	144,758	132,596	128,097	115,873	119,394	120,519	117,730
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
Pretax margin		4.12%	3.98%	3.98%	3.91%	3.85%	4.04%	3.80%	3.85%	3.85%	3.82%	4.05%	4.09%	4.06%	4.11%	3.87%	3.77%	3.48%	3.60%	3.64%	3.62%

August 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $201,493K ÷ $4,887,840K
= 4.12%

The pretax margin of PriceSmart Inc has shown fluctuations over the periods analyzed. The pretax margin represents the percentage of each dollar of revenue that translates into pre-tax profit.

Between November 2019 and August 2024, PriceSmart Inc's pretax margin fluctuated within a range of 3.48% to 4.12%, indicating some degree of volatility in the company's profitability performance.

Overall, the pretax margin has generally been around the 4% mark, with some periods showing slightly higher or lower results. The highest pretax margin was observed in August 2024 at 4.12%, while the lowest was recorded in August 2020 at 3.48%.

It is essential for PriceSmart Inc to monitor and manage its expenses effectively to maintain and improve its pretax margin over time, as this metric is critical in evaluating the company's operational efficiency and profitability before accounting for taxes.