Costco Wholesale Corp (COST)
Debt-to-capital ratio
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 | Sep 1, 2019 | May 12, 2019 | ||
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Long-term debt | US$ in thousands | 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 | 5,124,000 | 4,799,000 |
Total stockholders’ equity | US$ in thousands | 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 | 15,243,000 | 14,486,000 |
Debt-to-capital ratio | 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 | 0.25 | 0.25 |
February 18, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,865,000K ÷ ($5,865,000K + $20,760,000K)
= 0.22
The debt-to-capital ratio of Costco Wholesale Corp has shown fluctuations over the past few fiscal periods. The ratio has ranged from 0.18 to 0.34. Generally, a lower debt-to-capital ratio indicates that a company relies less on debt financing and has a stronger financial position.
From May 2019 to May 2022, the ratio has increased steadily from 0.23 to 0.32, indicating an increasing level of debt relative to the total capital structure. However, in the latest reported period of February 2024, the ratio decreased to 0.22, which could signal a decrease in the reliance on debt financing or an increase in equity capital.
It is important to note that while debt can provide funding for growth and operational needs, excessive debt levels can pose financial risks, such as higher interest expense and decreased financial flexibility. As such, investors and analysts should continue to monitor Costco Wholesale Corp's debt-to-capital ratio along with other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Feb 18, 2024