Costco Wholesale Corp (COST)

Return on equity (ROE)

		Sep 1, 2024	May 12, 2024	Feb 18, 2024	Nov 26, 2023	Sep 3, 2023	May 7, 2023	Feb 12, 2023	Nov 20, 2022	Aug 28, 2022	May 8, 2022	Feb 13, 2022	Nov 21, 2021	Aug 29, 2021	May 9, 2021	Feb 14, 2021	Nov 22, 2020	Aug 30, 2020	May 10, 2020	Feb 16, 2020	Nov 24, 2019
Net income (ttm)	US$ in thousands	7,367,000	7,173,000	6,794,000	6,517,000	6,292,000	6,000,000	6,051,000	5,884,000	5,844,000	5,646,000	5,513,000	5,165,000	5,007,000	4,726,000	4,344,000	4,324,000	4,002,000	3,710,000	3,778,000	3,736,000
Total stockholders’ equity	US$ in thousands	23,622,000	21,771,000	20,760,000	26,147,000	25,058,000	23,568,000	22,794,000	21,471,000	20,642,000	19,968,000	19,418,000	18,463,000	17,564,000	16,482,000	15,652,000	14,860,000	18,284,000	16,802,000	16,614,000	15,861,000
ROE		31.19%	32.95%	32.73%	24.92%	25.11%	25.46%	26.55%	27.40%	28.31%	28.28%	28.39%	27.97%	28.51%	28.67%	27.75%	29.10%	21.89%	22.08%	22.74%	23.55%

September 1, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $7,367,000K ÷ $23,622,000K
= 31.19%

The return on equity (ROE) of Costco Wholesale Corp has shown a generally positive trend over the past few years, with fluctuations occurring from quarter to quarter.

The ROE has ranged from a low of 21.89% to a high of 32.95% during the period analyzed. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits.

Overall, the ROE has averaged around 27% over the past few years, indicating that Costco has been efficient in generating profits relative to the amount of equity invested in the business.

However, it is important to note the fluctuations in ROE, as they may be influenced by various factors such as changes in the company's profitability, debt levels, or equity structure. Further analysis would be needed to understand the specific drivers behind these fluctuations and assess the sustainability of Costco's ROE performance.