PriceSmart Inc (PSMT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.07 | 0.06 | 0.06 | 0.06 | 0.07 | 0.06 | 0.06 | 0.06 | 0.07 | 0.06 | 0.07 | 0.07 | 0.08 | 0.06 |
| 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 |
| 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 |
| Financial leverage ratio | 1.80 | 1.84 | 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 |
The solvency ratios of PriceSmart Inc indicate a relatively stable financial position over the analyzed period. The debt-to-assets ratio has ranged between 0.05 and 0.08, suggesting that the company has maintained a low level of debt compared to its total assets. Similarly, the debt-to-capital ratio has fluctuated between 0.08 and 0.13, indicating that debt constitutes a relatively small portion of the company's overall capital structure.
The debt-to-equity ratio has remained relatively consistent, ranging from 0.08 to 0.14, showing a moderate level of reliance on debt financing compared to equity. The financial leverage ratio has varied between 1.77 and 1.99, reflecting the company's ability to utilize debt to leverage its assets and operations.
Overall, PriceSmart Inc appears to have a sound financial standing with prudent levels of debt relative to its assets, capital, and equity. The company's consistent solvency ratios suggest a balanced approach to funding its operations and investments while minimizing financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 16.82 | 16.30 | 17.00 | 16.88 | 16.35 | 16.67 | 15.48 | 15.80 | 17.27 | 19.48 | 23.17 | 23.45 | 21.38 | 18.30 | 15.21 | 15.56 | 16.20 | 20.55 | 28.04 | 32.24 |
The interest coverage ratio for PriceSmart Inc has been consistently strong over the past few years, reflecting the company's ability to comfortably meet its interest obligations. The ratio has ranged from a low of 15.21 to a high of 32.24, with an average around 20. This indicates that the company's earnings before interest and taxes (EBIT) are significantly higher than its interest expenses, demonstrating a healthy financial position. The trend of the interest coverage ratio generally increasing over time signifies improving profitability and operating efficiency. Overall, PriceSmart Inc's interest coverage ratio suggests that the company is effectively managing its debt and is capable of servicing its interest payments.