Costco Wholesale Corp (COST)
Working capital 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 current assets | US$ in thousands | 35,879,000 | 32,696,000 | 29,505,000 | 28,120,000 | 23,485,000 |
| Total current liabilities | US$ in thousands | 33,583,000 | 31,998,000 | 29,441,000 | 24,844,000 | 23,237,000 |
| Working capital turnover | 105.53 | 325.15 | 3,061.39 | 50.90 | 615.74 |
September 3, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $242,290,000K ÷ ($35,879,000K – $33,583,000K)
= 105.53
The working capital turnover for Costco Wholesale Corp over the past five years has exhibited significant fluctuations. In fiscal year 2021, the working capital turnover ratio was notably high at 3,061.39, reflecting a substantial efficiency in utilizing working capital to generate sales. This was followed by a sharp decrease in fiscal year 2022 to 325.15, indicating a decrease in the company's ability to convert working capital into revenue. The most recent ratio for fiscal year 2023, at 105.53, continues to reflect a lower level of efficiency compared to fiscal year 2021, although it shows an improvement compared to the preceding year. The considerable variation in the working capital turnover ratio suggests fluctuations in the company's operational efficiency and highlights the importance of closely monitoring changes in working capital management.
Peer comparison
Sep 3, 2023