Costco Wholesale Corp (COST)

Working capital turnover

		Sep 1, 2024	May 12, 2024	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
Revenue (ttm)	US$ in thousands	254,453,000	253,695,000	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
Total current assets	US$ in thousands	34,246,000	33,288,000	32,146,000	40,080,000	35,879,000	34,289,000	34,330,000	34,150,000	32,696,000	33,008,000	32,565,000	33,850,000	29,505,000	27,916,000	26,308,000	32,096,000	28,120,000	25,254,000	23,703,000	26,643,000
Total current liabilities	US$ in thousands	35,464,000	35,361,000	34,688,000	36,768,000	33,583,000	31,708,000	32,516,000	33,067,000	31,998,000	31,845,000	31,545,000	33,342,000	29,441,000	27,982,000	26,564,000	32,667,000	24,844,000	22,779,000	22,695,000	26,265,000
Working capital turnover		—	—	—	74.17	105.53	91.22	129.21	213.32	325.15	187.05	206.10	399.77	3,061.39	—	—	—	50.90	65.00	157.09	409.19

September 1, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $254,453,000K ÷ ($34,246,000K – $35,464,000K)
= —

The working capital turnover ratio for Costco Wholesale Corp has fluctuated over the past few periods, indicating varying efficiency levels in managing its working capital. The ratio is used to measure how effectively the company is utilizing its working capital to generate sales revenue.

In November 2023, the working capital turnover ratio stood at 74.17, indicating that for every dollar of working capital, the company generated $74.17 in sales revenue. This ratio improved significantly to 399.77 in February 2022, showcasing a substantial efficiency boost in utilizing its working capital.

The ratio peaked dramatically in August 2021 at 3,061.39, suggesting an exceptional performance in generating sales relative to its working capital base. However, it is important to note that the ratio was not reported for certain periods, which may indicate data limitations or irregular reporting practices.

Overall, the trend in the working capital turnover ratio for Costco Wholesale Corp demonstrates fluctuations in operational efficiency and effectiveness in managing its working capital to drive sales. It is essential for the company to monitor and optimize its working capital utilization to maintain sustainable growth and profitability.