PriceSmart Inc (PSMT)

Return on equity (ROE)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Net income	US$ in thousands	138,875	109,205	104,534	97,963	78,109
Total stockholders’ equity	US$ in thousands	1,122,960	1,107,040	991,073	915,345	831,719
ROE		12.37%	9.86%	10.55%	10.70%	9.39%

August 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $138,875K ÷ $1,122,960K
= 12.37%

PriceSmart Inc's return on equity (ROE) has shown a slight improvement over the past five years. The ROE increased from 9.39% in 2020 to 12.37% in 2024. This indicates that the company has been able to generate more profits from its shareholders' equity.

Although there were fluctuations in the ROE over the years, the general trend has been positive. The ROE was relatively stable between 2021 and 2023, ranging from 9.86% to 10.70%. However, the significant jump to 12.37% in 2024 suggests that PriceSmart Inc has become more efficient in utilizing its equity to generate earnings for its shareholders.

Overall, the increasing trend in ROE demonstrates the company's ability to create value for its shareholders and indicates improved profitability and efficiency in utilizing its equity. Investors may view this positively as it reflects a stronger financial performance and potential for future growth.