Costco Wholesale Corp (COST)

Debt-to-capital ratio

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
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
Debt-to-capital ratio 0.20 0.21 0.22 0.18 0.18 0.22 0.22 0.23 0.24 0.25 0.26 0.27 0.28 0.31 0.32 0.34 0.29 0.31 0.23 0.24

September 1, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,794,000K ÷ ($5,794,000K + $23,622,000K)
= 0.20

The debt-to-capital ratio of Costco Wholesale Corp has shown some fluctuations over the past several quarters. As of September 1, 2024, the ratio stood at 0.20, indicating that the company's long-term debt represented 20% of its total capital (including debt and equity). This figure increased slightly from the previous quarter's ratio of 0.21, but it remained relatively stable compared to historical levels.

Looking back over the past two years, there seems to be a general upward trend in the debt-to-capital ratio, with occasional peaks and valleys. The ratio ranged from a low of 0.18 in November 2023 to a high of 0.34 in February 2021. This suggests that Costco has been gradually increasing its reliance on debt financing relative to its total capital structure.

Overall, while the recent ratio of 0.20 indicates a moderate level of leverage, investors and stakeholders should monitor future changes in the debt-to-capital ratio to assess Costco's financial health and risk profile. Fluctuations in this ratio could signal shifts in the company's capital structure and borrowing strategies, which may impact its overall financial stability and ability to generate returns for shareholders.


Peer comparison

Sep 1, 2024


See also:

Costco Wholesale Corp Debt to Capital (Quarterly Data)