Costco Wholesale Corp (COST)

Quick ratio

		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
Cash	US$ in thousands	9,906,000	10,404,000	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
Short-term investments	US$ in thousands	1,238,000	1,095,000	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
Receivables	US$ in thousands	2,721,000	2,583,000	2,779,000	2,542,000	2,285,000	2,502,000	2,714,000	2,312,000	2,241,000	1,991,000	2,232,000	1,932,000	1,803,000	1,595,000	1,934,000	1,646,000	1,550,000	1,507,000	1,988,000	1,711,000
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
Quick ratio		0.39	0.40	0.38	0.55	0.52	0.51	0.50	0.42	0.42	0.43	0.46	0.46	0.47	0.45	0.42	0.49	0.60	0.58	0.47	0.45

September 1, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,906,000K + $1,238,000K + $2,721,000K) ÷ $35,464,000K
= 0.39

The quick ratio of Costco Wholesale Corp has exhibited fluctuations over the past several quarters. The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets.

From November 2019 to September 2024, the quick ratio ranged from a low of 0.38 to a high of 0.60. The quick ratio was below 0.50 in several periods, indicating that Costco may have had difficulty in meeting its short-term obligations with its quick assets alone during those quarters.

The highest quick ratio observed was 0.60 in November 2020, suggesting that Costco had a strong ability to cover its current liabilities with its current assets, excluding inventory. On the other hand, the lowest quick ratio of 0.38 in February 2024 indicates a potential liquidity challenge during that specific period.

Overall, the company's quick ratio has shown some variability, but it is essential to assess trends over time to gain a better understanding of Costco's liquidity position and ability to manage short-term financial obligations.