Costco Wholesale Corp (COST)
Receivables turnover
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 242,290,000 | 226,954,000 | 195,929,000 | 166,761,000 | 152,703,000 |
| Receivables | US$ in thousands | 2,285,000 | 2,241,000 | 1,803,000 | 1,550,000 | 1,535,000 |
| Receivables turnover | 106.04 | 101.27 | 108.67 | 107.59 | 99.48 |
September 3, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $242,290,000K ÷ $2,285,000K
= 106.04
The receivables turnover ratio for Costco Wholesale Corp has shown consistency over the past five years, with values ranging from 99.48 to 108.67. This indicates that the company has been efficient in collecting payments from its customers in a timely manner. The higher the receivables turnover ratio, the shorter the time it takes for the company to collect its accounts receivable. The consistent high values of the ratio suggest effective credit and collection policies, as well as a strong customer base that pays its bills promptly. This is a positive indication of Costco's financial health and management of its accounts receivable.
Peer comparison
Sep 3, 2023