Costco Wholesale Corp (COST)
Debt-to-assets ratio
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,794,000 | 5,377,000 | 6,484,000 | 6,692,000 | 7,514,000 |
| Total assets | US$ in thousands | 69,831,000 | 68,994,000 | 64,166,000 | 59,268,000 | 55,556,000 |
| Debt-to-assets ratio | 0.08 | 0.08 | 0.10 | 0.11 | 0.14 |
September 1, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,794,000K ÷ $69,831,000K
= 0.08
Costco Wholesale Corp's debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.08 to 0.14. The ratio measures the proportion of the company's total assets financed by debt, indicating the level of financial leverage and risk.
A lower debt-to-assets ratio suggests that the company relies less on debt to finance its operations and investments, which can be viewed positively by investors and creditors as it indicates a lower risk of financial distress. Costco's consistently low ratios of 0.08 to 0.11 indicate a conservative approach to debt management and a strong financial position.
The slight increase in the ratio from 0.08 to 0.10 in 2022 and then to 0.11 in 2021 may suggest a slight increase in debt relative to assets. However, it is still within reasonable levels and does not raise significant concerns about the company's financial stability. Overall, Costco's debt-to-assets ratio shows a prudent and balanced approach to capital structure management.
Peer comparison
Sep 1, 2024