PriceSmart Inc (PSMT)

Debt-to-capital 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 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
Debt-to-capital ratio		0.09	0.08	0.10	0.10	0.11	0.10	0.09	0.10	0.11	0.11	0.11	0.10	0.11	0.11	0.12	0.13	0.12	0.11	0.07	0.08

February 29, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $102,350K ÷ ($102,350K + $1,093,870K)
= 0.09

The debt-to-capital ratio of PriceSmart Inc has fluctuated over the past 20 quarters, ranging from 0.07 to 0.13. The ratio indicates the proportion of the company's capital structure that is financed by debt.

In the most recent quarter, as of February 29, 2024, the debt-to-capital ratio was 0.09, suggesting that only 9% of PriceSmart's capital is funded by debt, while the remaining 91% is financed by equity. This relatively low ratio indicates that PriceSmart relies more on equity financing than debt to support its operations and investments.

Over the past two years, the debt-to-capital ratio has generally remained within the range of 0.08 to 0.13, indicating a relatively stable capital structure with a moderate level of leverage. This suggests that the company has managed its debt levels prudently, balancing the benefits of leveraging with the risks associated with higher debt burdens.

Overall, PriceSmart Inc's debt-to-capital ratio analysis reveals a conservative approach to capital structure management, emphasizing a healthy balance between debt and equity financing to support its business activities and growth initiatives.