Costco Wholesale Corp (COST)
Return on equity (ROE)
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,367,000 | 6,292,000 | 5,844,000 | 5,007,000 | 4,002,000 |
| Total stockholders’ equity | US$ in thousands | 23,622,000 | 25,058,000 | 20,642,000 | 17,564,000 | 18,284,000 |
| ROE | 31.19% | 25.11% | 28.31% | 28.51% | 21.89% |
September 1, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,367,000K ÷ $23,622,000K
= 31.19%
Costco Wholesale Corp has exhibited a positive trend in its return on equity (ROE) over the past five years, with the ROE increasing from 21.89% in August 2020 to 31.19% in September 2024. This indicates that the company has been effectively utilizing its shareholders' equity to generate earnings. The consistent improvement in ROE suggests that Costco has been efficiently managing its assets and liabilities to generate profits for its shareholders. The upward trend in ROE signifies the company's ability to generate higher profits relative to the equity invested by shareholders. Overall, the rising ROE reflects Costco's solid financial performance and efficient capital allocation strategies.
Peer comparison
Sep 1, 2024