Costco Wholesale Corp (COST)
Return on total capital
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,909,000 | 8,647,000 | 7,927,000 | 6,779,000 | 5,470,000 |
| Long-term debt | US$ in thousands | 5,794,000 | 5,377,000 | 6,484,000 | 6,692,000 | 7,514,000 |
| Total stockholders’ equity | US$ in thousands | 23,622,000 | 25,058,000 | 20,642,000 | 17,564,000 | 18,284,000 |
| Return on total capital | 33.69% | 28.41% | 29.22% | 27.95% | 21.20% |
September 1, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $9,909,000K ÷ ($5,794,000K + $23,622,000K)
= 33.69%
Costco Wholesale Corp's return on total capital has shown a positive trend over the past five years. The return on total capital has increased from 21.20% in August 2020 to 33.69% in September 2024, indicating improving efficiency in generating profits from its capital investments. This upward trend suggests that Costco has been effectively utilizing its capital to generate higher returns for its shareholders. The consistent improvement in return on total capital reflects Costco's strong operational performance and strategic capital allocation decisions. Investors and stakeholders may view this trend positively as it demonstrates the company's ability to generate returns on its invested capital.
Peer comparison
Sep 1, 2024