PriceSmart Inc (PSMT)

Debt-to-assets ratio

		Aug 31, 2024	May 31, 2024	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
Long-term debt	US$ in thousands	94,443	98,426	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
Total assets	US$ in thousands	2,022,690	2,020,700	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
Debt-to-assets ratio		0.05	0.05	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

August 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $94,443K ÷ $2,022,690K
= 0.05

The debt-to-assets ratio of PriceSmart Inc has remained relatively stable over the past few quarters, ranging from 0.05 to 0.08. A lower debt-to-assets ratio indicates that the company relies less on debt financing and has a stronger financial position. PriceSmart's consistent low ratio suggests that the company has a conservative approach to debt and maintains a healthy balance between debt and assets. This is a positive sign for investors and stakeholders as it indicates financial stability and efficient management of resources. However, it's important to continue monitoring this ratio to ensure the company's financial health is sustained over time.