Costco Wholesale Corp (COST)
Debt-to-assets ratio
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,377,000 | 6,484,000 | 6,692,000 | 7,514,000 | 5,124,000 |
| Total assets | US$ in thousands | 68,994,000 | 64,166,000 | 59,268,000 | 55,556,000 | 45,400,000 |
| Debt-to-assets ratio | 0.08 | 0.10 | 0.11 | 0.14 | 0.11 |
September 3, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,377,000K ÷ $68,994,000K
= 0.08
The debt-to-assets ratio for Costco Wholesale Corp has shown a declining trend over the past five years, indicating a strengthening financial position in terms of solvency and leverage. The ratio decreased from 0.15 in September 2019 to 0.09 in September 2023. This suggests that the company is relying less on debt to finance its assets, which may be viewed positively by investors and creditors. A lower ratio signifies that Costco's assets are primarily funded by equity, reducing the financial risk associated with excessive debt. This trend reflects prudent financial management and a strong ability to generate internal funds for investment and growth. Overall, the decreasing debt-to-assets ratio indicates an improving balance between debt and asset levels, which can enhance the company's financial stability and long-term sustainability.
Peer comparison
Sep 3, 2023