Costco Wholesale Corp (COST)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,909,000 | 9,766,000 | 9,248,000 | 8,987,000 | 8,647,000 | 8,182,000 | 8,218,000 | 8,017,000 | 7,927,000 | 7,692,000 | 7,526,000 | 7,049,000 | 6,779,000 | 6,365,000 | 5,874,000 | 5,830,000 | 5,470,000 | 5,089,000 | 5,051,000 | 4,993,000 |
| Long-term debt | US$ in thousands | 5,794,000 | 5,834,000 | 5,865,000 | 5,866,000 | 5,377,000 | 6,497,000 | 6,506,000 | 6,472,000 | 6,484,000 | 6,507,000 | 6,658,000 | 6,667,000 | 6,692,000 | 7,495,000 | 7,522,000 | 7,529,000 | 7,514,000 | 7,598,000 | 5,099,000 | 5,107,000 |
| 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 |
| Return on total capital | 33.69% | 35.38% | 34.73% | 28.07% | 28.41% | 27.21% | 28.05% | 28.69% | 29.22% | 29.05% | 28.86% | 28.05% | 27.95% | 26.55% | 25.35% | 26.04% | 21.20% | 20.86% | 23.26% | 23.81% |
September 1, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,909,000K ÷ ($5,794,000K + $23,622,000K)
= 33.69%
Based on the data provided, Costco Wholesale Corp's return on total capital has shown a relatively stable trend over the past few reporting periods. The return on total capital ranged from a low of 20.86% to a high of 35.38%, with an overall average of approximately 28.66%.
This indicates that Costco has been effective in generating returns from its total capital investments, with a consistently strong performance. The company has been able to efficiently utilize its capital to generate profits, demonstrating effective management of its resources.
The relatively consistent and above-average return on total capital suggests that Costco is effectively deploying its capital to generate profits for its shareholders. This stable performance may indicate strong operational efficiency and strategic decision-making within the company.
Peer comparison
Sep 1, 2024