Costco Wholesale Corp (COST)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 68,994,000 | 64,166,000 | 59,268,000 | 55,556,000 | 45,400,000 |
| ROA | 9.12% | 9.11% | 8.45% | 7.20% | 8.06% |
September 3, 2023 calculation
ROA = Net income ÷ Total assets
= $6,292,000K ÷ $68,994,000K
= 9.12%
Sure, I'd be happy to analyze Costco Wholesale Corp's return on assets (ROA) based on the provided data.
Return on assets (ROA) is a financial ratio that indicates a company's ability to generate profits from its assets. It is calculated by dividing net income by average total assets. A higher ROA indicates that the company is more efficient in utilizing its assets to generate profits.
Looking at the ROA data for Costco Wholesale Corp from Sep 3, 2023, to Sep 1, 2019, we can observe the following trend:
- Sep 3, 2023: 9.12%
- Aug 28, 2022: 9.11%
- Aug 29, 2021: 8.45%
- Aug 30, 2020: 7.20%
- Sep 1, 2019: 8.06%
The trend in Costco's ROA over the five-year period shows a generally positive trajectory, with the ROA increasing from 8.06% in 2019 to 9.12% in 2023, indicating an improvement in the company's ability to generate profits from its assets.
This upward trend in ROA suggests that Costco has been increasingly efficient in utilizing its assets to generate profit over the years, which could be attributed to better management of assets, efficient operations, or improved profitability.
Overall, the trend in Costco's ROA reflects positively on the company's performance in utilizing its assets to generate profits, and it indicates a strong financial position and operational efficiency. However, it is important to consider other financial metrics and industry benchmarks to gain a more comprehensive understanding of Costco's overall financial performance.
Peer comparison
Sep 3, 2023