Costco Wholesale Corp (COST)

Fixed asset turnover

		Feb 18, 2024	Nov 26, 2023	Sep 3, 2023	May 7, 2023	Feb 12, 2023	Nov 20, 2022	Aug 28, 2022	May 8, 2022	Feb 13, 2022	Nov 21, 2021	Aug 29, 2021	May 9, 2021	Feb 14, 2021	Nov 22, 2020	Aug 30, 2020	May 10, 2020	Feb 16, 2020	Nov 24, 2019	Sep 1, 2019	May 12, 2019
Revenue (ttm)	US$ in thousands	248,828,000	245,652,000	242,290,000	235,442,000	234,390,000	231,028,000	226,954,000	217,538,000	210,219,000	203,084,000	195,929,000	186,637,000	178,626,000	172,929,000	166,761,000	160,876,000	158,350,000	154,674,000	152,703,000	149,616,000
Property, plant and equipment	US$ in thousands	27,601,000	27,168,000	26,684,000	25,931,000	25,724,000	25,144,000	24,646,000	24,143,000	24,052,000	23,887,000	23,492,000	23,177,000	22,531,000	22,288,000	21,807,000	21,527,000	21,481,000	21,237,000	20,890,000	20,475,000
Fixed asset turnover		9.02	9.04	9.08	9.08	9.11	9.19	9.21	9.01	8.74	8.50	8.34	8.05	7.93	7.76	7.65	7.47	7.37	7.28	7.31	7.31

February 18, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $248,828,000K ÷ $27,601,000K
= 9.02

The fixed asset turnover ratio for Costco Wholesale Corp has been relatively stable over the past several quarters, ranging from 7.28 to 9.21. This ratio indicates that the company's fixed assets are efficiently utilized to generate sales revenue, with each dollar of fixed assets generating between $7.28 and $9.21 of sales.

The consistency and high values of the fixed asset turnover over this period suggest effective management of fixed assets and efficient deployment of capital resources to drive revenue. It shows that Costco is able to maximize the productivity of its fixed assets, such as property, plant, and equipment, in supporting its sales activities.

Overall, the trend in Costco's fixed asset turnover ratio reflects the company's ability to generate strong sales relative to its investment in fixed assets, highlighting operational efficiency and effective asset utilization.