PriceSmart Inc (PSMT)

Return on assets (ROA)

		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	Aug 31, 2019	May 31, 2019
Net income (ttm)	US$ in thousands	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	73,191	71,514
Total assets	US$ in thousands	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	1,296,410	1,261,860
ROA		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%	5.65%	5.67%

February 29, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $122,271K ÷ $2,036,780K
= 6.00%

The return on assets (ROA) for PriceSmart Inc has shown some fluctuations over the past few quarters. The ROA averaged around 5.6% over the last several quarters, indicating the company generates approximately $0.056 in profit for every dollar of assets it holds.

The highest ROA was recorded at 6.06% in May 2023, while the lowest was at 4.71% in August 2020. The recent ROA of 6.00% in February 2024 is slightly above the average, suggesting the company has been effectively utilizing its assets to generate profits.

Overall, PriceSmart Inc's ROA performance has been relatively stable, trending around the 5.6% mark, with some variations in between. It is essential for the company to maintain or improve its ROA to ensure efficient use of its assets and sustainable profitability in the long term.