Costco Wholesale Corp (COST)

Fixed asset turnover

		Sep 1, 2024	May 12, 2024	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
Revenue (ttm)	US$ in thousands	254,453,000	253,695,000	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
Property, plant and equipment	US$ in thousands	29,032,000	28,062,000	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
Fixed asset turnover		8.76	9.04	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

September 1, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $254,453,000K ÷ $29,032,000K
= 8.76

The fixed asset turnover ratio for Costco Wholesale Corp has shown a generally increasing trend over the given time period, ranging from 7.28 to 9.21. This indicates that the company has been able to generate more sales relative to its investment in fixed assets. Higher fixed asset turnover ratios suggest that Costco is effectively utilizing its fixed assets to generate revenue.

The highest fixed asset turnover ratio recorded was 9.21 in August 28, 2022, showcasing the efficiency of Costco's fixed asset utilization during that period. On the other hand, the lowest ratio of 7.28 was reported on November 24, 2019, signaling comparatively lower revenue generation from fixed assets at that point in time.

Overall, the increasing trend in fixed asset turnover ratios reflects Costco's ability to efficiently manage and utilize its fixed assets to support its sales operations over the analyzed time period.