PriceSmart, Inc. (PSMT) has reported a 4.92 percent rise in profit for the quarter ended Feb. 28, 2017. The company has earned $27.22 million, or $0.90 a share in the quarter, compared with $25.94 million, or $0.85 a share for the same period last year.
Revenue during the quarter went up marginally by 1.98 percent to $793.30 million from $777.93 million in the previous year period. Gross margin for the quarter expanded 40 basis points over the previous year period to 15.85 percent. Total expenses were 95.03 percent of quarterly revenues, up from 94.97 percent for the same period last year. That has resulted in a contraction of 6 basis points in operating margin to 4.97 percent.
Operating income for the quarter was $39.40 million, compared with $39.14 million in the previous year period.
Working capital increases marginally
PriceSmart, Inc. has recorded an increase in the working capital over the last year. It stood at $140.86 million as at Feb. 28, 2017, up 4.84 percent or $6.50 million from $134.36 million on Feb. 29, 2016. Current ratio was at 1.38 as on Feb. 28, 2017, down from 1.41 on Feb. 29, 2016.
Cash conversion cycle (CCC) has increased to 16 days for the quarter from 6 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 20 days for the quarter compared with 40 days for the previous year period. At the same time, days payable outstanding was almost stable at 37 days for the quarter, when compared with the previous year period.
Debt increases substantially
PriceSmart, Inc. has witnessed an increase in total debt over the last one year. It stood at $123.13 million as on Feb. 28, 2017, up 35.21 percent or $32.06 million from $91.06 million on Feb. 29, 2016. Total debt was 10.64 percent of total assets as on Feb. 28, 2017, compared with 9.03 percent on Feb. 29, 2016. Debt to equity ratio was at 0.18 as on Feb. 28, 2017, up from 0.16 as on Feb. 29, 2016. Interest coverage ratio deteriorated to 23.97 for the quarter from 25.48 for the same period last year.
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