PriceSmart Inc (PSMT)

Debt-to-assets ratio

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Long-term debt	US$ in thousands	119,487	103,556	110,110	112,610	63,711
Total assets	US$ in thousands	2,005,610	1,808,400	1,705,790	1,656,820	1,296,410
Debt-to-assets ratio		0.06	0.06	0.06	0.07	0.05

August 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $119,487K ÷ $2,005,610K
= 0.06

The debt-to-assets ratio of Pricesmart Inc. has shown fluctuation over the past five years. As of August 31, 2023, the ratio stands at 0.07, indicating that the company's total debt is 7% of its total assets. This represents a slight decrease from the previous year's ratio of 0.08.

The trend over the period from 2019 to 2023 shows that Pricesmart Inc. has generally maintained a low level of debt relative to its assets, with the highest ratio observed in 2020 at 0.12. However, the company managed to bring this ratio down to 0.07 by 2023.

Overall, the consistent low debt-to-assets ratio suggests that Pricesmart Inc. has a strong ability to cover its debt obligations using its assets. However, it is important to note that the trend of decreasing ratio might indicate a more conservative approach to financing, which could impact the company's growth strategies in the future.