PriceSmart Inc (PSMT)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	102,350	99,704	119,487	124,631	126,383	118,505	103,556	108,182	120,057	110,601	110,110	101,294	106,160	108,104	112,610	117,045	113,879	98,084	63,711	69,476
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
Debt-to-assets ratio		0.05	0.05	0.06	0.06	0.07	0.06	0.06	0.06	0.07	0.06	0.06	0.06	0.07	0.06	0.07	0.07	0.08	0.06	0.05	0.06

February 29, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $102,350K ÷ $2,036,780K
= 0.05

The debt-to-assets ratio for PriceSmart Inc has remained relatively stable over the past several quarters, hovering around 0.05 to 0.08. This ratio indicates that the company's level of debt in relation to its total assets is low, ranging from 5% to 8%. A lower debt-to-assets ratio generally suggests lower financial risk, as the company has a smaller proportion of debt relative to its assets. PriceSmart Inc's consistent low debt-to-assets ratio may indicate a conservative financial management approach, where the company is maintaining a healthy balance between debt and assets. This stable ratio suggests that PriceSmart Inc may have a strong financial position and may be less vulnerable to financial distress related to high levels of debt.