Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Costco Wholesale Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Costco Wholesale Corp. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Costco Wholesale Corp. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Costco Wholesale Corp. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Costco Wholesale Corp. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Costco Wholesale Corp. ROA improved from 2022 to 2023 and from 2023 to 2024. |
Gross Profit Margin
Costco Wholesale Corp., gross profit margin 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) | |||||||
| Gross margin | 27,267) | 25,124) | 23,348) | 21,368) | 18,281) | 16,465) | |
| Net sales | 249,625) | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 10.92% | 10.57% | 10.48% | 11.13% | 11.20% | 11.02% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Target Corp. | 27.54% | 24.57% | 29.28% | 29.27% | 29.76% | — | |
| Walmart Inc. | 23.73% | 23.46% | 24.44% | 24.30% | 24.10% | — | |
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 27,267 ÷ 249,625 = 10.92%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Costco Wholesale Corp. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Costco Wholesale Corp., operating profit margin 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) | |||||||
| Operating income | 9,285) | 8,114) | 7,793) | 6,708) | 5,435) | 4,737) | |
| Net sales | 249,625) | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 3.72% | 3.41% | 3.50% | 3.49% | 3.33% | 3.17% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Target Corp. | 5.31% | 3.53% | 8.44% | 6.99% | 5.96% | — | |
| Walmart Inc. | 4.20% | 3.37% | 4.57% | 4.06% | 3.96% | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 4.20% | 3.40% | 4.76% | 4.26% | 4.03% | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | 7.96% | 7.31% | 8.44% | 8.48% | 8.17% | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 9,285 ÷ 249,625 = 3.72%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Costco Wholesale Corp. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Net Profit Margin
Costco Wholesale Corp., net profit margin 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) | |
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Target Corp. | 3.85% | 2.55% | 6.55% | 4.67% | 4.20% | — | |
| Walmart Inc. | 2.41% | 1.93% | 2.41% | 2.43% | 2.86% | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 2.70% | 2.18% | 2.95% | 2.72% | 2.91% | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | 5.69% | 5.47% | 6.11% | 6.21% | 6.22% | — | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Costco Wholesale Corp. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
Costco Wholesale Corp., ROE 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) | |
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Target Corp. | 30.81% | 24.75% | 54.15% | 30.25% | 27.73% | — | |
| Walmart Inc. | 18.50% | 15.23% | 16.42% | 16.69% | 19.93% | — | |
| ROE, Sector | |||||||
| Consumer Staples Distribution & Retail | 22.34% | 18.37% | 22.67% | 20.26% | 21.15% | — | |
| ROE, Industry | |||||||
| Consumer Staples | 32.18% | 30.71% | 32.10% | 31.40% | 30.98% | — | |
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
ROE = 100 × Net income attributable to Costco ÷ Total Costco stockholders’ equity
= 100 × 7,367 ÷ 23,622 = 31.19%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Costco Wholesale Corp. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Return on Assets (ROA)
Costco Wholesale Corp., ROA 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) | |
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Target Corp. | 7.48% | 5.21% | 12.91% | 8.52% | 7.67% | — | |
| Walmart Inc. | 6.15% | 4.80% | 5.58% | 5.35% | 6.29% | — | |
| ROA, Sector | |||||||
| Consumer Staples Distribution & Retail | 7.15% | 5.68% | 7.29% | 6.30% | 6.62% | — | |
| ROA, Industry | |||||||
| Consumer Staples | 8.89% | 8.28% | 8.95% | 8.75% | 8.24% | — | |
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
ROA = 100 × Net income attributable to Costco ÷ Total assets
= 100 × 7,367 ÷ 69,831 = 10.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Costco Wholesale Corp. ROA improved from 2022 to 2023 and from 2023 to 2024. |