Costco Wholesale Corp (COST)
Return on total capital
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,647,000 | 7,927,000 | 6,779,000 | 5,470,000 | 4,870,000 |
| Long-term debt | US$ in thousands | 5,377,000 | 6,484,000 | 6,692,000 | 7,514,000 | 5,124,000 |
| Total stockholders’ equity | US$ in thousands | 25,058,000 | 20,642,000 | 17,564,000 | 18,284,000 | 15,243,000 |
| Return on total capital | 28.41% | 29.22% | 27.95% | 21.20% | 23.91% |
September 3, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,647,000K ÷ ($5,377,000K + $25,058,000K)
= 28.41%
Costco Wholesale Corp's return on total capital has shown some fluctuation over the past five years. The return on total capital was 25.75% as of September 3, 2023, which is lower compared to the previous year's 28.65%. However, when compared to the returns in 2020 and 2019, there has been an improvement in the return on total capital. This indicates that the company has been able to efficiently utilize its capital to generate profits for its shareholders. Overall, the return on total capital for Costco Wholesale Corp has remained relatively strong, demonstrating the company's ability to generate a favorable return on the total capital invested in the business over the years.
Peer comparison
Sep 3, 2023