PriceSmart Inc (PSMT)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,093,870	1,082,240	1,107,040	1,089,690	1,043,910	1,026,360	991,073	968,198	953,884	942,146	915,345	898,803	874,268	866,167	831,719	818,666	817,893	816,829	797,351	778,593
ROE		11.18%	10.57%	9.86%	10.75%	10.23%	10.42%	10.55%	10.40%	10.90%	10.69%	10.70%	10.97%	10.15%	9.94%	9.39%	9.61%	9.79%	9.59%	9.18%	9.19%

February 29, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $122,271K ÷ $1,093,870K
= 11.18%

Over the past 20 quarters, PriceSmart Inc has demonstrated a relatively stable return on equity (ROE) ranging from 9.18% to 11.18%. The highest ROE was recorded in February 2024 at 11.18%, while the lowest was in May 2020 at 9.39%. The company's ROE indicates its ability to generate profit from shareholders' equity, with an average ROE of approximately 10.43% over this period.

PriceSmart Inc's ROE trend has shown minor fluctuations, with a gradual increase observed from mid-2020 onwards until the recent peak in February 2024. This suggests that the company has been effectively utilizing its equity to generate profits and create shareholder value.

Overall, PriceSmart Inc's performance in terms of ROE reflects a consistent and reasonable return generated on shareholders' equity over the past 5 years, indicating a stable financial performance and effective management of equity investments.