Costco Wholesale Corp (COST)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 25,058,000 | 20,642,000 | 17,564,000 | 18,284,000 | 15,243,000 |
| ROE | 25.11% | 28.31% | 28.51% | 21.89% | 24.00% |
September 3, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,292,000K ÷ $25,058,000K
= 25.11%
Costco Wholesale Corp's return on equity (ROE) has fluctuated over the past five years, ranging from 21.89% to 28.51%. The declining trend from 2019 to 2020 was followed by a subsequent recovery in 2021, though the ROE dipped slightly in 2022 and 2023.
ROE is a measure of a company's profitability in relation to shareholder equity, indicating how well the company is utilizing its equity to generate profits. The variations in Costco's ROE suggest changes in its ability to generate profits from shareholders' investments.
It is essential to delve deeper into the company's financial and operational performance to understand the factors driving these fluctuations in ROE. Further analysis of profitability, asset management, and financial leverage ratios would provide a comprehensive understanding of the company's overall performance and efficiency in generating returns for its shareholders.
Peer comparison
Sep 3, 2023