PriceSmart Inc (PSMT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.05 | 0.06 |
| Debt-to-capital ratio | 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 | 0.07 | 0.08 |
| 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 |
| 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 |
The solvency ratios of PriceSmart Inc have shown relatively stable trends over the periods analyzed. The debt-to-assets ratio has ranged between 0.05 and 0.08, indicating that the company maintains a low level of debt relative to its total assets. The debt-to-capital ratio has fluctuated between 0.07 and 0.13, suggesting that the company relies moderately on debt financing to fund its operations. The debt-to-equity ratio has varied from 0.08 to 0.14, illustrating the proportion of debt and equity in the company's capital structure.
The financial leverage ratio, which reflects the company's ability to meet its financial obligations, has ranged from 1.62 to 1.99. This ratio indicates the extent to which the company uses debt to finance its assets, with higher values implying higher financial risk.
Overall, PriceSmart Inc appears to have a conservative debt structure with relatively low leverage levels. However, the company's increasing financial leverage ratio over recent periods may necessitate a closer monitoring of its debt levels and financial health to ensure long-term sustainability and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 29.12 | 24.91 |
PriceSmart Inc's interest coverage ratio has shown a consistently strong performance over the past several quarters. The interest coverage ratio, which measures the company's ability to meet its interest obligations with its operating income, averaged around 20 in the latest available quarterly data. This indicates that PriceSmart Inc generated operating income that was 20 times higher than its interest expenses on average.
The trend over the past few quarters has been positive, with the interest coverage ratio generally increasing from around 15 to over 20. This suggests that the company's financial health has been improving, as it has been able to generate more income to comfortably cover its interest expenses.
The high and consistent interest coverage ratio is a positive sign for investors and creditors, as it indicates that PriceSmart Inc is effectively managing its debt obligations and is at a lower risk of default. Additionally, the increasing trend in the interest coverage ratio reflects the company's improving profitability and financial stability over time.