Costco Wholesale Corp (COST)
Total asset 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 |
| Total assets | US$ in thousands | 68,994,000 | 64,166,000 | 59,268,000 | 55,556,000 | 45,400,000 |
| Total asset turnover | 3.51 | 3.54 | 3.31 | 3.00 | 3.36 |
September 3, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $242,290,000K ÷ $68,994,000K
= 3.51
Costco Wholesale Corp’s total asset turnover has demonstrated a consistent trend over the past five years. The ratio measures how efficiently the company utilizes its assets to generate revenue. A higher total asset turnover indicates more efficient utilization of assets.
Starting from September 2019 to the latest data in September 2023, Costco's total asset turnover has ranged from 3.00 to 3.54, with the latest figure at 3.51. This indicates that the company generates approximately $3.51 in revenue for every dollar of assets it holds.
The slight decrease from 3.54 in August 2022 to 3.51 in September 2023 may signal a small reduction in asset efficiency. However, the overall trend suggests that Costco has maintained consistently high asset turnover, reflecting strong operational efficiency in utilizing its assets to drive revenue growth.
The higher total asset turnover demonstrates Costco’s ability to efficiently manage its resources, potentially through effective inventory management, strong sales, and effective utilization of fixed assets. This efficiency may contribute to the company's ability to generate strong returns for its shareholders.
In conclusion, Costco's total asset turnover trend indicates a consistently efficient utilization of its assets to generate revenue, which is a positive indicator for investors and reflects the company's strong operational performance.
Peer comparison
Sep 3, 2023