Costco Wholesale Corp (COST)
Total asset 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 |
| Total assets | US$ in thousands | 69,831,000 | 68,994,000 | 64,166,000 | 59,268,000 | 55,556,000 |
| Total asset turnover | 3.64 | 3.51 | 3.54 | 3.31 | 3.00 |
September 1, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $254,453,000K ÷ $69,831,000K
= 3.64
Costco Wholesale Corp has demonstrated consistently strong total asset turnover ratios over the past five years, indicating efficient utilization of its assets to generate revenue. The company's total asset turnover has shown a positive trend, increasing from 3.00 in 2020 to 3.64 in 2024.
A total asset turnover ratio of 3.64 in 2024 implies that for every dollar of assets held by the company, it generated $3.64 in revenue during the year. This indicates that Costco has been effective in managing and deploying its assets to drive sales.
The steady improvement in total asset turnover signifies that Costco has been able to enhance its operational efficiency and productivity over the years. The company's ability to generate substantial revenue relative to its asset base reflects strong management of inventory, efficient use of resources, and effective capital allocation.
Overall, Costco's total asset turnover performance demonstrates the company's operational prowess and highlights its ability to maximize revenue generation from its asset base.
Peer comparison
Sep 1, 2024