Costco Wholesale Corp (COST)
Net profit margin
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,292,000 | 5,844,000 | 5,007,000 | 4,002,000 | 3,659,000 |
| Revenue | US$ in thousands | 242,290,000 | 226,954,000 | 195,929,000 | 166,761,000 | 152,703,000 |
| Net profit margin | 2.60% | 2.57% | 2.56% | 2.40% | 2.40% |
September 3, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $6,292,000K ÷ $242,290,000K
= 2.60%
The net profit margin of Costco Wholesale Corp has remained relatively stable over the past five years, ranging from 2.40% to 2.60%. This indicates that the company has been able to effectively manage its expenses in relation to its revenue. A consistently positive net profit margin reflects the company's ability to generate profits from its operations after accounting for all expenses, including taxes and interest. It suggests that Costco has been successful in controlling costs and maintaining profitability, which is a positive sign for investors and stakeholders. However, a potential concern may be the limited fluctuation in the net profit margin, which could indicate a lack of significant improvements in cost management or revenue generation strategies over the years.
Peer comparison
Sep 3, 2023