Costco Wholesale Corp (COST)
Cash ratio
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,906,000 | 13,700,000 | 10,203,000 | 11,258,000 | 12,277,000 |
| Short-term investments | US$ in thousands | 1,238,000 | 1,534,000 | 846,000 | 917,000 | 1,028,000 |
| Total current liabilities | US$ in thousands | 35,464,000 | 33,583,000 | 31,998,000 | 29,441,000 | 24,844,000 |
| Cash ratio | 0.31 | 0.45 | 0.35 | 0.41 | 0.54 |
September 1, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,906,000K
+ $1,238,000K)
÷ $35,464,000K
= 0.31
The cash ratio of Costco Wholesale Corp has shown a declining trend over the past five years from 0.54 in August 2020 to 0.31 in September 2024. This indicates that the company has decreased its ability to cover its short-term liabilities with its available cash and cash equivalents over the years.
A cash ratio of 0.31 in September 2024 implies that for every dollar of current liabilities, Costco has $0.31 of cash and cash equivalents on hand, representing a reduction in liquidity compared to the previous years.
While a declining trend in the cash ratio may raise concerns about the company's liquidity position, it is essential to consider the overall financial health of Costco Wholesale Corp by analyzing other financial ratios and factors impacting its cash reserves and liquidity management.
Peer comparison
Sep 1, 2024