PriceSmart Inc (PSMT)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	1,107,040	991,073	915,345	831,719	797,351
Debt-to-equity ratio		0.11	0.10	0.12	0.14	0.08

August 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $119,487K ÷ $1,107,040K
= 0.11

The debt-to-equity ratio of Pricesmart Inc. has fluctuated over the past five years, indicating changes in the company's capital structure. The ratio decreased from 0.24 in 2020 to 0.12 in 2019, suggesting a reduction in financial leverage. However, the ratio increased to 0.14 in 2021 and then slightly rose again to 0.15 in 2022, indicating a higher reliance on debt financing in those years. In 2023, the ratio further decreased to 0.13, which may suggest improved financial health as the company reduced its debt relative to equity. Overall, the trend in the debt-to-equity ratio implies varying levels of financial risk and capitalization strategies employed by Pricesmart Inc. during this period.