Costco Wholesale Corp (COST)
Cash ratio
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 | Sep 1, 2019 | May 12, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 9,095,000 | 17,011,000 | 13,700,000 | 12,493,000 | 12,970,000 | 10,856,000 | 10,203,000 | 11,193,000 | 11,819,000 | 12,751,000 | 11,258,000 | 10,226,000 | 8,637,000 | 13,590,000 | 12,277,000 | 10,826,000 | 7,786,000 | 9,027,000 | 8,384,000 | 7,013,000 |
Short-term investments | US$ in thousands | 1,226,000 | 853,000 | 1,534,000 | 1,215,000 | 735,000 | 817,000 | 846,000 | 638,000 | 477,000 | 725,000 | 917,000 | 900,000 | 617,000 | 833,000 | 1,028,000 | 948,000 | 929,000 | 993,000 | 1,060,000 | 1,154,000 |
Total current liabilities | US$ in thousands | 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 | 23,237,000 | 22,832,000 |
Cash ratio | 0.30 | 0.49 | 0.45 | 0.43 | 0.42 | 0.35 | 0.35 | 0.37 | 0.39 | 0.40 | 0.41 | 0.40 | 0.35 | 0.44 | 0.54 | 0.52 | 0.38 | 0.38 | 0.41 | 0.36 |
February 18, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,095,000K
+ $1,226,000K)
÷ $34,688,000K
= 0.30
The cash ratio of Costco Wholesale Corp over the past several quarters has shown some fluctuations but generally indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. The trend shows that the company has maintained a healthy cash ratio above 0.30 for the most part, which suggests a strong liquidity position.
In particular, the ratio ranged from 0.35 to 0.49, with occasional peaks at 0.54 and a low of 0.30. These fluctuations may be attributed to various factors such as seasonal fluctuations in sales, inventory management, or strategic investments. However, the ratio consistently staying above the industry benchmark of 0.20 indicates that Costco has a significant amount of cash on hand to cover its current obligations.
Overall, Costco's cash ratio trend suggests that the company has a solid liquidity position that allows it to comfortably meet its short-term financial commitments. However, it is important for investors and stakeholders to continue monitoring the ratio to ensure that Costco maintains a healthy balance between cash reserves and other investments.
Peer comparison
Feb 18, 2024