Costco Wholesale Corp (COST)

Debt-to-equity 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-equity ratio		0.25	0.27	0.28	0.22	0.21	0.28	0.29	0.30	0.31	0.33	0.34	0.36	0.38	0.45	0.48	0.51	0.41	0.45	0.31	0.32

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 fluctuated over the past few years, ranging from 0.21 to 0.51. The ratio indicates the proportion of debt and equity financing used by the company to fund its operations and growth. A lower ratio suggests that the company relies more on equity financing, which can be seen as a positive indicator of financial stability and lower financial risk. On the other hand, a higher ratio may indicate higher leverage and greater financial risk.

In this case, the ratio has generally been within a reasonable range, with the latest ratio standing at 0.25, indicating that Costco has had a relatively conservative approach to debt financing. However, it is important to monitor the trend of the ratio over time to assess the company's changing financial position and risk profile.