Costco Wholesale Corp (COST)
Operating return on assets (Operating ROA)
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 9,285,000 | 8,114,000 | 7,793,000 | 6,708,000 | 5,435,000 |
| Total assets | US$ in thousands | 69,831,000 | 68,994,000 | 64,166,000 | 59,268,000 | 55,556,000 |
| Operating ROA | 13.30% | 11.76% | 12.15% | 11.32% | 9.78% |
September 1, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $9,285,000K ÷ $69,831,000K
= 13.30%
Costco Wholesale Corp's operating return on assets (ROA) has been consistently strong over the past five years, with the figures ranging from 9.78% to 13.30%. The upward trend in operating ROA indicates that the company has been effectively generating operating income relative to its total assets. This suggests that Costco has been efficient in utilizing its assets to generate earnings from its core operations.
The significant increase in operating ROA from 9.78% in Aug 30, 2020, to 13.30% in Sep 1, 2024, reflects an improvement in the company's operational efficiency and profitability. This increase could be attributed to various factors, such as cost control measures, revenue growth, or improved asset utilization.
Overall, Costco Wholesale Corp's consistent and strong operating ROA performance signifies its ability to generate profits from its operational activities relative to the size of its asset base. This metric is essential for investors and stakeholders as it provides insights into the company's operational efficiency and profitability over time.
Peer comparison
Sep 1, 2024