Stock Analysis on Net
Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Costco Wholesale Corp., adjusted financial ratios

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Activity Ratio
Total Asset Turnover
Reported 3.57 3.45 3.47 3.24 2.94 3.29
Adjusted 3.60 3.47 3.47 3.26 2.96 3.19
Liquidity Ratio
Current Ratio
Reported 0.97 1.07 1.02 1.00 1.13 1.01
Adjusted 0.97 1.07 1.04 1.00 1.13 1.01
Solvency Ratios
Debt to Equity
Reported 0.31 0.31 0.40 0.49 0.45 0.48
Adjusted 0.42 0.42 0.51 0.62 0.58 0.58
Debt to Capital
Reported 0.24 0.24 0.28 0.33 0.31 0.32
Adjusted 0.29 0.29 0.34 0.38 0.37 0.37
Financial Leverage
Reported 2.96 2.75 3.11 3.37 3.04 2.98
Adjusted 2.91 2.70 3.00 3.20 2.91 2.98
Profitability Ratios
Net Profit Margin
Reported 2.95% 2.65% 2.62% 2.61% 2.45% 2.45%
Adjusted 2.90% 2.49% 2.49% 2.78% 2.66% 2.41%
Return on Equity (ROE)
Reported 31.19% 25.11% 28.31% 28.51% 21.89% 24.00%
Adjusted 30.38% 23.31% 25.93% 29.05% 22.85% 22.89%
Return on Assets (ROA)
Reported 10.55% 9.12% 9.11% 8.45% 7.20% 8.06%
Adjusted 10.45% 8.63% 8.63% 9.08% 7.86% 7.68%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Costco Wholesale Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Costco Wholesale Corp. adjusted current ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Costco Wholesale Corp. adjusted debt-to-equity ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Costco Wholesale Corp. adjusted debt-to-capital ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Costco Wholesale Corp. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Costco Wholesale Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Costco Wholesale Corp. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Costco Wholesale Corp. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Costco Wholesale Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Reported
Selected Financial Data (US$ in millions)
Net sales 249,625 237,710 222,730 192,052 163,220 149,351
Total assets 69,831 68,994 64,166 59,268 55,556 45,400
Activity Ratio
Total asset turnover1 3.57 3.45 3.47 3.24 2.94 3.29
Adjusted
Selected Financial Data (US$ in millions)
Net sales 249,625 237,710 222,730 192,052 163,220 149,351
Adjusted total assets2 69,283 68,503 64,159 58,824 55,150 46,884
Activity Ratio
Adjusted total asset turnover3 3.60 3.47 3.47 3.26 2.96 3.19

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).

1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= 249,625 ÷ 69,831 = 3.57

2 Adjusted total assets. See details »

3 2024 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 249,625 ÷ 69,283 = 3.60

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Costco Wholesale Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Current Ratio

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 34,246 35,879 32,696 29,505 28,120 23,485
Current liabilities 35,464 33,583 31,998 29,441 24,844 23,237
Liquidity Ratio
Current ratio1 0.97 1.07 1.02 1.00 1.13 1.01
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 34,246 35,879 33,134 29,505 28,120 23,485
Current liabilities 35,464 33,583 31,998 29,441 24,844 23,237
Liquidity Ratio
Adjusted current ratio3 0.97 1.07 1.04 1.00 1.13 1.01

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).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 34,246 ÷ 35,464 = 0.97

2 Adjusted current assets. See details »

3 2024 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 34,246 ÷ 35,464 = 0.97

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Costco Wholesale Corp. adjusted current ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 7,395 7,890 8,185 8,543 8,297 7,244
Total Costco stockholders’ equity 23,622 25,058 20,642 17,564 18,284 15,243
Solvency Ratio
Debt to equity1 0.31 0.31 0.40 0.49 0.45 0.48
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 9,949 10,536 10,906 11,407 11,086 9,126
Adjusted total equity3 23,843 25,362 21,364 18,388 18,964 15,729
Solvency Ratio
Adjusted debt to equity4 0.42 0.42 0.51 0.62 0.58 0.58

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).

1 2024 Calculation
Debt to equity = Total debt ÷ Total Costco stockholders’ equity
= 7,395 ÷ 23,622 = 0.31

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 9,949 ÷ 23,843 = 0.42

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Costco Wholesale Corp. adjusted debt-to-equity ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Debt to Capital

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 7,395 7,890 8,185 8,543 8,297 7,244
Total capital 31,017 32,948 28,827 26,107 26,581 22,487
Solvency Ratio
Debt to capital1 0.24 0.24 0.28 0.33 0.31 0.32
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 9,949 10,536 10,906 11,407 11,086 9,126
Adjusted total capital3 33,792 35,898 32,270 29,795 30,050 24,855
Solvency Ratio
Adjusted debt to capital4 0.29 0.29 0.34 0.38 0.37 0.37

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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,395 ÷ 31,017 = 0.24

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 9,949 ÷ 33,792 = 0.29

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Costco Wholesale Corp. adjusted debt-to-capital ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 69,831 68,994 64,166 59,268 55,556 45,400
Total Costco stockholders’ equity 23,622 25,058 20,642 17,564 18,284 15,243
Solvency Ratio
Financial leverage1 2.96 2.75 3.11 3.37 3.04 2.98
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 69,283 68,503 64,159 58,824 55,150 46,884
Adjusted total equity3 23,843 25,362 21,364 18,388 18,964 15,729
Solvency Ratio
Adjusted financial leverage4 2.91 2.70 3.00 3.20 2.91 2.98

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).

1 2024 Calculation
Financial leverage = Total assets ÷ Total Costco stockholders’ equity
= 69,831 ÷ 23,622 = 2.96

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 69,283 ÷ 23,843 = 2.91

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Costco Wholesale Corp. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Adjusted Net Profit Margin

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Costco 7,367 6,292 5,844 5,007 4,002 3,659
Net sales 249,625 237,710 222,730 192,052 163,220 149,351
Profitability Ratio
Net profit margin1 2.95% 2.65% 2.62% 2.61% 2.45% 2.45%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income including noncontrolling interests2 7,243 5,911 5,540 5,342 4,334 3,601
Net sales 249,625 237,710 222,730 192,052 163,220 149,351
Profitability Ratio
Adjusted net profit margin3 2.90% 2.49% 2.49% 2.78% 2.66% 2.41%

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).

1 2024 Calculation
Net profit margin = 100 × Net income attributable to Costco ÷ Net sales
= 100 × 7,367 ÷ 249,625 = 2.95%

2 Adjusted net income including noncontrolling interests. See details »

3 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income including noncontrolling interests ÷ Net sales
= 100 × 7,243 ÷ 249,625 = 2.90%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Costco Wholesale Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Costco 7,367 6,292 5,844 5,007 4,002 3,659
Total Costco stockholders’ equity 23,622 25,058 20,642 17,564 18,284 15,243
Profitability Ratio
ROE1 31.19% 25.11% 28.31% 28.51% 21.89% 24.00%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income including noncontrolling interests2 7,243 5,911 5,540 5,342 4,334 3,601
Adjusted total equity3 23,843 25,362 21,364 18,388 18,964 15,729
Profitability Ratio
Adjusted ROE4 30.38% 23.31% 25.93% 29.05% 22.85% 22.89%

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).

1 2024 Calculation
ROE = 100 × Net income attributable to Costco ÷ Total Costco stockholders’ equity
= 100 × 7,367 ÷ 23,622 = 31.19%

2 Adjusted net income including noncontrolling interests. See details »

3 Adjusted total equity. See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income including noncontrolling interests ÷ Adjusted total equity
= 100 × 7,243 ÷ 23,843 = 30.38%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Costco Wholesale Corp. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Costco 7,367 6,292 5,844 5,007 4,002 3,659
Total assets 69,831 68,994 64,166 59,268 55,556 45,400
Profitability Ratio
ROA1 10.55% 9.12% 9.11% 8.45% 7.20% 8.06%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income including noncontrolling interests2 7,243 5,911 5,540 5,342 4,334 3,601
Adjusted total assets3 69,283 68,503 64,159 58,824 55,150 46,884
Profitability Ratio
Adjusted ROA4 10.45% 8.63% 8.63% 9.08% 7.86% 7.68%

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).

1 2024 Calculation
ROA = 100 × Net income attributable to Costco ÷ Total assets
= 100 × 7,367 ÷ 69,831 = 10.55%

2 Adjusted net income including noncontrolling interests. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income including noncontrolling interests ÷ Adjusted total assets
= 100 × 7,243 ÷ 69,283 = 10.45%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Costco Wholesale Corp. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.