PriceSmart Inc (PSMT)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,122,960	1,095,350	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
Debt-to-capital ratio		0.08	0.08	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

August 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $94,443K ÷ ($94,443K + $1,122,960K)
= 0.08

The debt-to-capital ratio for PriceSmart Inc has remained relatively stable over the past few quarters, ranging between 0.08 and 0.13. This ratio indicates the proportion of the company's total debt relative to its total capital, which includes both debt and equity. A lower ratio suggests that the company relies less on debt to finance its operations and is considered less risky, while a higher ratio may indicate higher financial leverage.

PriceSmart's debt-to-capital ratio has hovered around the 0.10 mark for most periods, showing a balanced mix of debt and equity in its capital structure. This stability suggests that the company has maintained a consistent approach to managing its debt levels relative to its overall capital base.

Overall, PriceSmart's debt-to-capital ratio indicates a moderate level of debt utilization, which may be a strategic decision to benefit from tax advantages or maintain financial flexibility. Monitoring this ratio over time can provide insights into the company's financial health, risk profile, and capital allocation strategies.