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