PriceSmart Inc (PSMT)

Debt-to-equity 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-equity ratio		0.09	0.09	0.11	0.11	0.12	0.12	0.10	0.11	0.13	0.12	0.12	0.11	0.12	0.12	0.14	0.14	0.14	0.12	0.08	0.09

February 29, 2024 calculation

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

The debt-to-equity ratio of PriceSmart Inc has remained relatively stable over the last few quarters, ranging from 0.08 to 0.14. A lower debt-to-equity ratio indicates that the company is relying less on debt financing and has a stronger equity position. PriceSmart Inc's ratio has generally been below 0.15, suggesting a conservative approach to capital structure.

The slight fluctuations in the ratio from quarter to quarter indicate that the company may be managing its debt levels effectively and maintaining a healthy balance between debt and equity. However, it is important to consider other factors such as the industry norms, economic conditions, and company's growth prospects to fully assess the implications of the debt-to-equity ratio on PriceSmart Inc's financial position.