Costco Wholesale Corp (COST)
Pretax margin
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 9,740,000 | 8,487,000 | 7,769,000 | 6,608,000 | 5,310,000 |
| Revenue | US$ in thousands | 254,453,000 | 242,290,000 | 226,954,000 | 195,929,000 | 166,761,000 |
| Pretax margin | 3.83% | 3.50% | 3.42% | 3.37% | 3.18% |
September 1, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $9,740,000K ÷ $254,453,000K
= 3.83%
Pretax margin is an important profitability metric that indicates the percentage of each dollar of revenue that translates into pre-tax profit. Over the past five years, Costco Wholesale Corp has shown a consistent improvement in its pretax margin. The company's pretax margin has increased gradually from 3.18% in August 2020 to 3.83% in September 2024. This upward trend signals that Costco has been effectively managing its expenses relative to its revenue, resulting in improved profitability before taxes. The steady growth in pretax margin reflects the company's ability to generate more profit from its sales over the years, showcasing a positive trajectory in Costco's financial performance.
Peer comparison
Sep 1, 2024