PriceSmart, Inc (PSMT) has reported a 5.06 percent rise in profit for the quarter ended Nov. 30, 2016. The company has earned $24.87 million, or $0.82 a share in the quarter, compared with $23.67 million, or $0.78 a share for the same period last year.
Revenue during the quarter grew 3.88 percent to $739.57 million from $711.93 million in the previous year period. Gross margin for the quarter expanded 62 basis points over the previous year period to 17.72 percent. Total expenses were 94.81 percent of quarterly revenues, up from 94.76 percent for the same period last year. That has resulted in a contraction of 5 basis points in operating margin to 5.19 percent.
Operating income for the quarter was $38.38 million, compared with $37.30 million in the previous year period.
Working capital increases
PriceSmart, Inc has recorded an increase in the working capital over the last year. It stood at $158.50 million as at Nov. 30, 2016, up 8.94 percent or $13 million from $145.49 million on Nov. 30, 2015. Current ratio was at 1.42 as on Nov. 30, 2016, up from 1.40 on Nov. 30, 2015.
Cash conversion cycle (CCC) has increased to 14 days for the quarter from 7 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 24 days for the quarter compared with 45 days for the previous year period. At the same time, days payable outstanding was almost stable at 39 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of PriceSmart, Inc remained almost stable for the quarter at $96.66 million, when compared with the last year period. Total debt was 8.65 percent of total assets as on Nov. 30, 2016, compared with 9.20 percent on Nov. 30, 2015. Debt to equity ratio was at 0.15 as on Nov. 30, 2016, down from 0.16 as on Nov. 30, 2015. Interest coverage ratio deteriorated to 23.20 for the quarter from 27.16 for the same period last year.
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