Costco Wholesale Corp (COST)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 66,323,000 | 73,723,000 | 68,994,000 | 66,752,000 | 66,848,000 | 66,027,000 | 64,166,000 | 63,852,000 | 63,078,000 | 64,149,000 | 59,268,000 | 57,274,000 | 54,918,000 | 60,217,000 | 55,556,000 | 51,732,000 | 48,782,000 | 51,431,000 | 45,400,000 | 43,752,000 |
| 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 |
| Financial leverage ratio | 3.19 | 2.82 | 2.75 | 2.83 | 2.93 | 3.08 | 3.11 | 3.20 | 3.25 | 3.47 | 3.37 | 3.47 | 3.51 | 4.05 | 3.04 | 3.08 | 2.94 | 3.24 | 2.98 | 3.02 |
February 18, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $66,323,000K ÷ $20,760,000K
= 3.19
Costco Wholesale Corp's financial leverage ratio has shown some fluctuations over the past few quarters. The ratio was highest at 4.05 in November 22, 2020, indicating the company had a higher level of financial leverage at that time. Subsequently, the ratio decreased to 2.75 in September 3, 2023, suggesting a lower reliance on debt financing.
Overall, the trend in the financial leverage ratio has been slightly increasing since September 3, 2023, reaching 3.19 by February 18, 2024. This increase suggests that Costco has been taking on more debt relative to its equity, which may indicate a strategic shift towards leveraging more heavily to fund its operations or growth initiatives.
It is essential for investors and analysts to closely monitor Costco's financial leverage ratio to assess the company's risk exposure and financial stability, as higher leverage ratios can indicate increased financial risk. Further analysis of the company's debt structure and ability to service its debt obligations would provide deeper insights into the implications of the changing leverage ratio.
Peer comparison
Feb 18, 2024