PriceSmart Inc (PSMT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,036,780 | 2,029,280 | 2,005,610 | 1,933,350 | 1,886,170 | 1,887,920 | 1,808,400 | 1,791,760 | 1,773,330 | 1,789,310 | 1,705,790 | 1,631,960 | 1,630,840 | 1,678,000 | 1,656,820 | 1,574,490 | 1,498,290 | 1,524,110 | 1,296,410 | 1,261,860 |
| 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 |
| Financial leverage ratio | 1.86 | 1.88 | 1.81 | 1.77 | 1.81 | 1.84 | 1.82 | 1.85 | 1.86 | 1.90 | 1.86 | 1.82 | 1.87 | 1.94 | 1.99 | 1.92 | 1.83 | 1.87 | 1.63 | 1.62 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,036,780K ÷ $1,093,870K
= 1.86
The financial leverage ratio of PriceSmart Inc has varied over the past few quarters, ranging from 1.62 to 1.99. The ratio measures the company's degree of financial leverage and indicates the proportion of debt in its capital structure.
The fluctuations in the financial leverage ratio suggest changes in the company's debt levels relative to its equity. A higher ratio indicates a higher level of debt compared to equity, which could heighten financial risk but also potentially amplify returns.
PriceSmart Inc's financial leverage ratio has been relatively stable around the 1.8 to 1.9 range, indicating a moderate level of financial leverage. This suggests the company has a balanced mix of debt and equity in its capital structure, which may provide some leverage for growth opportunities while managing financial risks.
It is important for investors and analysts to closely monitor changes in the financial leverage ratio over time, as sudden spikes or declines could signal shifts in the company's risk profile and financial health.
Peer comparison
Feb 29, 2024