Costco Wholesale Corp (COST)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 23,622,000 | 25,058,000 | 20,642,000 | 17,564,000 | 18,284,000 |
| Debt-to-equity ratio | 0.25 | 0.21 | 0.31 | 0.38 | 0.41 |
September 1, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,794,000K ÷ $23,622,000K
= 0.25
The debt-to-equity ratio of Costco Wholesale Corp has exhibited a decreasing trend over the past five years. In particular, the ratio has decreased from 0.41 in 2020 to 0.25 in 2024. This indicates that the company has been reducing its reliance on debt financing relative to equity financing over the analyzed period. A lower debt-to-equity ratio generally signifies a lower financial risk and a stronger financial position for the company, as it indicates that a smaller portion of the company's assets are financed by debt. This trend suggests that Costco Wholesale Corp has been effectively managing its capital structure and debt levels, which may be viewed positively by investors and lenders.
Peer comparison
Sep 1, 2024