Costco Wholesale Corp (COST)
Financial leverage ratio
| Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 69,831,000 | 68,994,000 | 64,166,000 | 59,268,000 | 55,556,000 |
| Total stockholders’ equity | US$ in thousands | 23,622,000 | 25,058,000 | 20,642,000 | 17,564,000 | 18,284,000 |
| Financial leverage ratio | 2.96 | 2.75 | 3.11 | 3.37 | 3.04 |
September 1, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $69,831,000K ÷ $23,622,000K
= 2.96
Costco Wholesale Corp's financial leverage ratio has fluctuated over the past five years, indicating changes in the company's capital structure. The ratio increased from 3.04 in August 2020 to 3.37 in August 2021, suggesting a higher level of debt relative to equity in the company's financing mix. However, there was a notable decrease in the financial leverage ratio to 3.11 in August 2022, followed by a further decline to 2.75 in September 2023, indicating a potential shift towards lower leverage.
The most recent data point, as of September 1, 2024, shows a financial leverage ratio of 2.96, which is higher than the previous year but still below the levels seen in 2021 and 2020. This suggests that Costco may be adjusting its capital structure to achieve a more balanced approach to debt and equity financing.
Overall, the trend in Costco's financial leverage ratio indicates variability in the company's leverage levels over the years, reflecting its strategic decisions regarding debt management and capital structure optimization.
Peer comparison
Sep 1, 2024