Costco Wholesale Corp (COST)
Receivables 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 |
| Receivables | US$ in thousands | 2,779,000 | 2,542,000 | 2,285,000 | 2,502,000 | 2,714,000 | 2,312,000 | 2,241,000 | 1,991,000 | 2,232,000 | 1,932,000 | 1,803,000 | 1,595,000 | 1,934,000 | 1,646,000 | 1,550,000 | 1,507,000 | 1,988,000 | 1,711,000 | 1,535,000 | 1,704,000 |
| Receivables turnover | 89.54 | 96.64 | 106.04 | 94.10 | 86.36 | 99.93 | 101.27 | 109.26 | 94.18 | 105.12 | 108.67 | 117.01 | 92.36 | 105.06 | 107.59 | 106.75 | 79.65 | 90.40 | 99.48 | 87.80 |
February 18, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $248,828,000K ÷ $2,779,000K
= 89.54
Receivables turnover is a key financial ratio that indicates how efficiently a company is managing its accounts receivable. Costco Wholesale Corp's receivables turnover over the past several quarters has shown fluctuations but has generally remained at a high level. The company's receivables turnover ranged from 79.65 to 117.01, with an average of approximately 100. This suggests that Costco is able to collect its outstanding receivables multiple times throughout the year, indicating effective credit management and quick turnover of receivables.
A higher receivables turnover ratio typically indicates that the company is efficient in collecting payments from its customers, reducing the risk of bad debts and improving cash flow. Costco's consistently high receivables turnover ratio reflects its strong credit policies and effective collection practices.
However, it is important to consider the industry norms and compare Costco's receivables turnover with its peers to get a better understanding of its performance in managing receivables. Additionally, further analysis of the trend over time and any significant changes in the ratio could provide valuable insights into Costco's financial health and operational efficiency.
Peer comparison
Feb 18, 2024