Analysis of Debt
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
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Total Debt (Carrying Amount)
Costco Wholesale Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
The analysis of the debt data over the fiscal years reveals several notable trends and fluctuations in both short-term and long-term debt components.
- Current portion of long-term debt
- This item experienced significant volatility. It dropped sharply from 1,699 million USD in 2019 to 95 million USD in 2020, then rebounded to 799 million USD in 2021 before falling again to 73 million USD in 2022. A substantial increase occurred in 2023, reaching 1,081 million USD, followed by a decline to 103 million USD in 2024. Overall, this indicates inconsistent short-term debt obligations over the period, with sharp swings year-over-year.
- Current finance lease liabilities
- The current finance lease liabilities demonstrated a clear upward trend from 26 million USD in 2019 to a peak of 245 million USD in 2022. This was followed by a decline to 129 million USD in 2023, then a moderate rise to 147 million USD in 2024. This pattern suggests an increase in short-term leasing obligations, peaking in 2022, with some reduction thereafter but remaining higher than the initial values.
- Long-term debt, excluding current portion
- The long-term debt (excluding current portions) rose considerably from 5,124 million USD in 2019 to a peak of 7,514 million USD in 2020. After this peak, it declined over subsequent years to 5,377 million USD by 2023, before slightly increasing to 5,794 million USD in 2024. This illustrates a heavy increase in long-term borrowing in 2020, followed by a gradual deleveraging trend after that year, with a mild uptick in the most recent year.
- Long-term finance lease liabilities
- Long-term finance lease liabilities showed a steady, significant increase over the period. Starting from 395 million USD in 2019, these liabilities more than tripled, reaching 1,383 million USD in 2022. After a marginal decline to 1,303 million USD in 2023, there was a slight recovery to 1,351 million USD in 2024. This pattern reflects a growing commitment to leasing arrangements on a long-term basis.
- Total long-term debt, including current portion and finance lease liabilities
- The total long-term debt including all components initially increased from 7,244 million USD in 2019 to a peak of 8,543 million USD in 2021. After this peak, total long-term debt declined gradually to 7,395 million USD in 2024. This overall trend indicates a buildup in debt through 2021, followed by a controlled reduction over the following years, reflecting possible debt management and refinancing strategies.
Total Debt (Fair Value)
| Sep 1, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Long-term debt, including current portion | |
| Finance lease liabilities | |
| Total long-term debt, including current portion and finance lease liabilities (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2024-09-01).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance leases:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2024-09-01).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =