Costco Wholesale Corp (COST)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.08 | 0.09 | 0.09 | 0.08 | 0.08 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.10 | 0.11 | 0.13 | 0.14 | 0.13 | 0.14 | 0.15 | 0.10 | 0.10 |
| Debt-to-capital ratio | 0.20 | 0.21 | 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 |
| 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 |
| Financial leverage ratio | 2.96 | 3.12 | 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 |
Costco Wholesale Corp's solvency ratios show a consistent and relatively stable financial position over the past few quarters.
The debt-to-assets ratio has remained relatively low, ranging between 0.08 and 0.15, indicating that the company relies minimally on debt to finance its assets. This suggests a strong ability to cover its liabilities using its assets.
The debt-to-capital ratio has fluctuated slightly but generally remained within the range of 0.18 to 0.34, indicating that a portion of the company's capital structure is debt-financed. However, the ratios are not alarmingly high, suggesting a balanced capital structure.
The debt-to-equity ratio has shown a similar pattern, varying between 0.21 and 0.51. This ratio reflects the proportion of debt and equity in the company's capital structure. While the ratios have increased slightly over the quarters, they still remain within a reasonable range.
The financial leverage ratio, which measures the company's use of debt in its capital structure, has fluctuated but generally stayed within the range of 2.75 to 4.05. This indicates that Costco has been utilizing debt to magnify returns, but the ratios do not show excessive leverage that could pose a significant risk to the company's solvency.
Overall, based on the solvency ratios, Costco Wholesale Corp appears to have maintained a solid financial position with a conservative approach to debt management, which reflects positively on its ability to meet its obligations and sustain its operations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 58.63 | 55.49 | 54.08 | 54.80 | 54.04 | 53.83 | 54.42 | 52.40 | 50.17 | 47.48 | 45.07 | 41.22 | 39.64 | 37.44 | 35.17 | 36.21 | 34.19 | 33.05 | 33.23 | 32.85 |
The interest coverage ratio of Costco Wholesale Corp has shown a fluctuating trend over the past few years, ranging from a high of 58.63 to a low of 32.85. Generally, a higher interest coverage ratio indicates a company's ability to easily meet interest payments on its outstanding debt. Costco's interest coverage has consistently remained above 30, demonstrating a strong capacity to cover interest expenses with its operating income. However, it is important to note that the ratio has been gradually decreasing over time, which may indicate a potential increase in the company's financial risk or a shift in its financial strategy. It would be advisable for stakeholders to continue monitoring this trend to ensure financial health and stability.