PriceSmart Inc (PSMT)

Debt-to-equity 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-equity ratio		0.08	0.09	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

August 31, 2024 calculation

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

The debt-to-equity ratio of PriceSmart Inc has shown some fluctuations over the past several reporting periods, ranging from 0.08 to 0.14. A lower ratio indicates that the company relies more on equity financing rather than debt to fund its operations and growth, which may be perceived positively by investors as it suggests lower financial risk. Conversely, a higher ratio indicates a higher level of debt relative to equity, which can indicate increased financial leverage and higher risk.

Overall, PriceSmart Inc has maintained relatively stable debt-to-equity ratios around the range of 0.10 to 0.14 in recent periods, indicating a balanced approach to capital structure. It would be beneficial for stakeholders to continue monitoring future trends in this ratio to assess the company's financial health and risk profile.