PriceSmart Inc (PSMT)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 138,875 | 125,188 | 122,271 | 114,347 | 109,205 | 117,128 | 106,814 | 106,928 | 104,534 | 100,691 | 103,962 | 100,737 | 97,963 | 98,578 | 88,754 | 86,118 | 78,109 | 78,706 | 80,097 | 78,307 |
| 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 |
| ROA | 6.87% | 6.20% | 6.00% | 5.63% | 5.44% | 6.06% | 5.66% | 5.66% | 5.78% | 5.62% | 5.86% | 5.63% | 5.74% | 6.04% | 5.44% | 5.13% | 4.71% | 5.00% | 5.35% | 5.14% |
August 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $138,875K ÷ $2,022,690K
= 6.87%
PriceSmart Inc's return on assets (ROA) has shown a fluctuating trend over the past several periods. The ROA ranged from as low as 4.71% in November 2020 to a high of 6.87% in August 2024. On average, the ROA during these periods was around 5.71%.
The variability in ROA indicates the company's efficiency in generating profits relative to its assets. A higher ROA suggests that PriceSmart is utilizing its assets effectively to generate earnings, while a lower ROA could signify inefficiencies or challenges in asset utilization.
Overall, PriceSmart's ROA has generally been above 5%, indicating a reasonable level of asset efficiency. However, management should continue to monitor and improve ROA to ensure sustainable profitability and efficient resource allocation.
Peer comparison
Aug 31, 2024