Costco Wholesale Corp (COST)
Fixed asset turnover
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 254,453,000 | 242,290,000 | 226,954,000 | 195,929,000 | 166,761,000 |
| Property, plant and equipment | US$ in thousands | 29,032,000 | 26,684,000 | 24,646,000 | 23,492,000 | 21,807,000 |
| Fixed asset turnover | 8.76 | 9.08 | 9.21 | 8.34 | 7.65 |
September 1, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $254,453,000K ÷ $29,032,000K
= 8.76
Costco Wholesale Corp's fixed asset turnover has shown a fluctuating trend over the past five years. It decreased from 7.65 in 2020 to 8.34 in 2021, before increasing to 9.21 in 2022, and then decreasing again in 2023 and 2024 to 9.08 and 8.76 respectively. This indicates that the company generated $8.76 in revenue for each dollar of fixed assets in 2024.
A high fixed asset turnover ratio suggests that Costco is efficiently utilizing its fixed assets to generate sales revenue. However, the decrease in the ratio over the past two years may signal challenges in optimizing the use of fixed assets or changes in the company's business operations. It would be important to investigate the reasons behind these fluctuations to assess the company's operational efficiency and financial performance.
Peer comparison
Sep 1, 2024