Costco Wholesale Corp (COST)
Receivables 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 |
| Receivables | US$ in thousands | 2,721,000 | 2,285,000 | 2,241,000 | 1,803,000 | 1,550,000 |
| Receivables turnover | 93.51 | 106.04 | 101.27 | 108.67 | 107.59 |
September 1, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $254,453,000K ÷ $2,721,000K
= 93.51
The receivables turnover of Costco Wholesale Corp has exhibited a decreasing trend over the past five years. The ratio, which measures how efficiently the company collects on its credit sales, was at its lowest in the most recent year ending September 1, 2024, at 93.51. This suggests that the company took approximately 93.51 days to collect its accounts receivable during that period.
Comparatively, the highest receivables turnover was observed in the fiscal year ending August 29, 2021, at 108.67, indicating a faster collection of receivables within approximately 108.67 days. The ratios for the years in between show similar levels of efficiency in collecting receivables, hovering around the range of 101.27 to 107.59.
The decreasing trend in receivables turnover may be worth closer examination to understand any underlying factors contributing to the elongation of the collection period. This analysis may reveal insights into the company's credit policies, customer payment behaviors, or potential changes in the business environment impacting receivables management.
Peer comparison
Sep 1, 2024