Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Costco Wholesale Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Costco Wholesale Corp. debt to equity ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Costco Wholesale Corp. debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Costco Wholesale Corp. debt to capital ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Costco Wholesale Corp. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Costco Wholesale Corp. debt to assets ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Costco Wholesale Corp. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Costco Wholesale Corp. financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Costco Wholesale Corp. interest coverage ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Costco Wholesale Corp. fixed charge coverage ratio improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Equity
Costco Wholesale Corp., debt to equity calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 103) | 1,081) | 73) | 799) | 95) | 1,699) | |
| Current finance lease liabilities | 147) | 129) | 245) | 72) | 31) | 26) | |
| Long-term debt, excluding current portion | 5,794) | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | |
| Long-term finance lease liabilities | 1,351) | 1,303) | 1,383) | 980) | 657) | 395) | |
| 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 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Target Corp. | 1.19 | 1.44 | 1.07 | 0.88 | 0.97 | — | |
| Walmart Inc. | 0.56 | 0.58 | 0.51 | 0.60 | 0.73 | — | |
| Debt to Equity, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.58 | 0.61 | 0.55 | 0.62 | 0.71 | — | |
| Debt to Equity, Industry | |||||||
| Consumer Staples | 1.11 | 1.16 | 1.08 | 1.07 | 1.24 | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Costco Wholesale Corp. debt to equity ratio improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Equity (including Operating Lease Liability)
Costco Wholesale Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 103) | 1,081) | 73) | 799) | 95) | 1,699) | |
| Current finance lease liabilities | 147) | 129) | 245) | 72) | 31) | 26) | |
| Long-term debt, excluding current portion | 5,794) | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | |
| Long-term finance lease liabilities | 1,351) | 1,303) | 1,383) | 980) | 657) | 395) | |
| Total debt | 7,395) | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | |
| Current operating lease liabilities (included in Other current liabilities) | 179) | 220) | 239) | 222) | 231) | —) | |
| Long-term operating lease liabilities | 2,375) | 2,426) | 2,482) | 2,642) | 2,558) | —) | |
| Total debt (including operating lease liability) | 9,949) | 10,536) | 10,906) | 11,407) | 11,086) | 7,244) | |
| Total Costco stockholders’ equity | 23,622) | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.42 | 0.42 | 0.53 | 0.65 | 0.61 | 0.48 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 1.46 | 1.70 | 1.28 | 1.05 | 1.18 | — | |
| Walmart Inc. | 0.73 | 0.77 | 0.69 | 0.78 | 0.97 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.75 | 0.78 | 0.73 | 0.79 | 0.93 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 1.23 | 1.28 | 1.20 | 1.19 | 1.39 | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Costco stockholders’ equity
= 9,949 ÷ 23,622 = 0.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Costco Wholesale Corp. debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Debt to Capital
Costco Wholesale Corp., debt to capital calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 103) | 1,081) | 73) | 799) | 95) | 1,699) | |
| Current finance lease liabilities | 147) | 129) | 245) | 72) | 31) | 26) | |
| Long-term debt, excluding current portion | 5,794) | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | |
| Long-term finance lease liabilities | 1,351) | 1,303) | 1,383) | 980) | 657) | 395) | |
| 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) | |
| 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 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Target Corp. | 0.54 | 0.59 | 0.52 | 0.47 | 0.49 | — | |
| Walmart Inc. | 0.36 | 0.37 | 0.34 | 0.38 | 0.42 | — | |
| Debt to Capital, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.37 | 0.38 | 0.36 | 0.38 | 0.41 | — | |
| Debt to Capital, Industry | |||||||
| Consumer Staples | 0.53 | 0.54 | 0.52 | 0.52 | 0.55 | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Costco Wholesale Corp. debt to capital ratio improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Capital (including Operating Lease Liability)
Costco Wholesale Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 103) | 1,081) | 73) | 799) | 95) | 1,699) | |
| Current finance lease liabilities | 147) | 129) | 245) | 72) | 31) | 26) | |
| Long-term debt, excluding current portion | 5,794) | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | |
| Long-term finance lease liabilities | 1,351) | 1,303) | 1,383) | 980) | 657) | 395) | |
| Total debt | 7,395) | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | |
| Current operating lease liabilities (included in Other current liabilities) | 179) | 220) | 239) | 222) | 231) | —) | |
| Long-term operating lease liabilities | 2,375) | 2,426) | 2,482) | 2,642) | 2,558) | —) | |
| Total debt (including operating lease liability) | 9,949) | 10,536) | 10,906) | 11,407) | 11,086) | 7,244) | |
| Total Costco stockholders’ equity | 23,622) | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | |
| Total capital (including operating lease liability) | 33,571) | 35,594) | 31,548) | 28,971) | 29,370) | 22,487) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.30 | 0.30 | 0.35 | 0.39 | 0.38 | 0.32 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 0.59 | 0.63 | 0.56 | 0.51 | 0.54 | — | |
| Walmart Inc. | 0.42 | 0.43 | 0.41 | 0.44 | 0.49 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.43 | 0.44 | 0.42 | 0.44 | 0.48 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 0.55 | 0.56 | 0.54 | 0.54 | 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 capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,949 ÷ 33,571 = 0.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Costco Wholesale Corp. debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Debt to Assets
Costco Wholesale Corp., debt to assets calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 103) | 1,081) | 73) | 799) | 95) | 1,699) | |
| Current finance lease liabilities | 147) | 129) | 245) | 72) | 31) | 26) | |
| Long-term debt, excluding current portion | 5,794) | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | |
| Long-term finance lease liabilities | 1,351) | 1,303) | 1,383) | 980) | 657) | 395) | |
| Total debt | 7,395) | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | |
| Total assets | 69,831) | 68,994) | 64,166) | 59,268) | 55,556) | 45,400) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.11 | 0.11 | 0.13 | 0.14 | 0.15 | 0.16 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Target Corp. | 0.29 | 0.30 | 0.25 | 0.25 | 0.27 | — | |
| Walmart Inc. | 0.19 | 0.18 | 0.17 | 0.19 | 0.23 | — | |
| Debt to Assets, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.19 | 0.19 | 0.18 | 0.19 | 0.22 | — | |
| Debt to Assets, Industry | |||||||
| Consumer Staples | 0.31 | 0.31 | 0.30 | 0.30 | 0.33 | — | |
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 assets = Total debt ÷ Total assets
= 7,395 ÷ 69,831 = 0.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Costco Wholesale Corp. debt to assets ratio improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Assets (including Operating Lease Liability)
Costco Wholesale Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 103) | 1,081) | 73) | 799) | 95) | 1,699) | |
| Current finance lease liabilities | 147) | 129) | 245) | 72) | 31) | 26) | |
| Long-term debt, excluding current portion | 5,794) | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | |
| Long-term finance lease liabilities | 1,351) | 1,303) | 1,383) | 980) | 657) | 395) | |
| Total debt | 7,395) | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | |
| Current operating lease liabilities (included in Other current liabilities) | 179) | 220) | 239) | 222) | 231) | —) | |
| Long-term operating lease liabilities | 2,375) | 2,426) | 2,482) | 2,642) | 2,558) | —) | |
| Total debt (including operating lease liability) | 9,949) | 10,536) | 10,906) | 11,407) | 11,086) | 7,244) | |
| Total assets | 69,831) | 68,994) | 64,166) | 59,268) | 55,556) | 45,400) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.14 | 0.15 | 0.17 | 0.19 | 0.20 | 0.16 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 0.35 | 0.36 | 0.31 | 0.29 | 0.33 | — | |
| Walmart Inc. | 0.24 | 0.24 | 0.23 | 0.25 | 0.31 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.24 | 0.24 | 0.23 | 0.25 | 0.29 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 0.34 | 0.34 | 0.33 | 0.33 | 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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,949 ÷ 69,831 = 0.14
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Costco Wholesale Corp. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. |
Financial Leverage
Costco Wholesale Corp., financial leverage calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Target Corp. | 4.12 | 4.75 | 4.20 | 3.55 | 3.62 | — | |
| Walmart Inc. | 3.01 | 3.17 | 2.94 | 3.12 | 3.17 | — | |
| Financial Leverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 3.12 | 3.24 | 3.11 | 3.21 | 3.20 | — | |
| Financial Leverage, Industry | |||||||
| Consumer Staples | 3.62 | 3.71 | 3.59 | 3.59 | 3.76 | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Costco Wholesale Corp. financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level. |
Interest Coverage
Costco Wholesale Corp., interest coverage calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Costco | 7,367) | 6,292) | 5,844) | 5,007) | 4,002) | 3,659) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | 71) | 72) | 57) | 45) | |
| Add: Income tax expense | 2,373) | 2,195) | 1,925) | 1,601) | 1,308) | 1,061) | |
| Add: Interest expense | 169) | 160) | 158) | 171) | 160) | 150) | |
| Earnings before interest and tax (EBIT) | 9,909) | 8,647) | 7,998) | 6,851) | 5,527) | 4,915) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 58.63 | 54.04 | 50.62 | 40.06 | 34.54 | 32.77 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Target Corp. | 11.55 | 8.15 | 22.16 | 6.68 | 9.78 | — | |
| Walmart Inc. | 9.14 | 9.00 | 10.38 | 9.88 | 8.74 | — | |
| Interest Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 12.00 | 11.46 | 14.77 | 10.47 | 10.17 | — | |
| Interest Coverage, Industry | |||||||
| Consumer Staples | 10.92 | 11.37 | 15.69 | 11.46 | 11.62 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 9,909 ÷ 169 = 58.63
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Costco Wholesale Corp. interest coverage ratio improved from 2022 to 2023 and from 2023 to 2024. |
Fixed Charge Coverage
Costco Wholesale Corp., fixed charge coverage calculation, comparison to benchmarks
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Costco | 7,367) | 6,292) | 5,844) | 5,007) | 4,002) | 3,659) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | 71) | 72) | 57) | 45) | |
| Add: Income tax expense | 2,373) | 2,195) | 1,925) | 1,601) | 1,308) | 1,061) | |
| Add: Interest expense | 169) | 160) | 158) | 171) | 160) | 150) | |
| Earnings before interest and tax (EBIT) | 9,909) | 8,647) | 7,998) | 6,851) | 5,527) | 4,915) | |
| Add: Operating lease costs | 284) | 309) | 297) | 296) | 252) | 268) | |
| Earnings before fixed charges and tax | 10,193) | 8,956) | 8,295) | 7,147) | 5,779) | 5,183) | |
| Interest expense | 169) | 160) | 158) | 171) | 160) | 150) | |
| Operating lease costs | 284) | 309) | 297) | 296) | 252) | 268) | |
| Fixed charges | 453) | 469) | 455) | 467) | 412) | 418) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 22.50 | 19.10 | 18.23 | 15.30 | 14.03 | 12.40 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Target Corp. | 6.04 | 4.62 | 12.02 | 5.24 | 6.48 | — | |
| Walmart Inc. | 5.40 | 4.84 | 5.38 | 5.16 | 4.82 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 6.71 | 5.95 | 7.41 | 5.88 | 5.60 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Staples | 7.34 | 7.38 | 9.06 | 7.46 | 7.19 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 10,193 ÷ 453 = 22.50
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Costco Wholesale Corp. fixed charge coverage ratio improved from 2022 to 2023 and from 2023 to 2024. |