Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Costco Wholesale Corp., solvency ratios
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Costco Wholesale Corp. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Costco Wholesale Corp. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Costco Wholesale Corp. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Costco Wholesale Corp. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Costco Wholesale Corp. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Costco Wholesale Corp. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Costco Wholesale Corp. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Costco Wholesale Corp. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Costco Wholesale Corp. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Costco Wholesale Corp., debt to equity calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,081) | 73) | 799) | 95) | 1,699) | 90) | |
| Current finance lease liabilities | 129) | 245) | 72) | 31) | 26) | 7) | |
| Long-term debt, excluding current portion | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | 6,487) | |
| Long-term finance lease liabilities | 1,303) | 1,383) | 980) | 657) | 395) | 390) | |
| Total debt | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | 6,974) | |
| Total Costco stockholders’ equity | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | 12,799) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.31 | 0.40 | 0.49 | 0.45 | 0.48 | 0.54 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Target Corp. | 1.44 | 1.07 | 0.88 | 0.97 | 1.00 | — | |
| Walmart Inc. | 0.58 | 0.51 | 0.60 | 0.73 | 0.80 | — | |
| Debt to Equity, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.61 | 0.55 | 0.62 | 0.71 | 0.77 | — | |
| Debt to Equity, Industry | |||||||
| Consumer Staples | 1.03 | 0.98 | 1.03 | 1.14 | 1.07 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Debt to equity = Total debt ÷ Total Costco stockholders’ equity
= 7,890 ÷ 25,058 = 0.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Costco Wholesale Corp. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Costco Wholesale Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,081) | 73) | 799) | 95) | 1,699) | 90) | |
| Current finance lease liabilities | 129) | 245) | 72) | 31) | 26) | 7) | |
| Long-term debt, excluding current portion | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | 6,487) | |
| Long-term finance lease liabilities | 1,303) | 1,383) | 980) | 657) | 395) | 390) | |
| Total debt | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | 6,974) | |
| Current operating lease liabilities (included in other current liabilities in the consolidated balance sheets) | 220) | 239) | 222) | 231) | —) | —) | |
| Long-term operating lease liabilities | 2,426) | 2,482) | 2,642) | 2,558) | —) | —) | |
| Total debt (including operating lease liability) | 10,536) | 10,906) | 11,407) | 11,086) | 7,244) | 6,974) | |
| Total Costco stockholders’ equity | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | 12,799) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.42 | 0.53 | 0.65 | 0.61 | 0.48 | 0.54 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 1.70 | 1.28 | 1.05 | 1.18 | 1.19 | — | |
| Walmart Inc. | 0.77 | 0.69 | 0.78 | 0.97 | 0.80 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.78 | 0.73 | 0.79 | 0.93 | 0.79 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 1.14 | 1.10 | 1.14 | 1.28 | 1.09 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Costco stockholders’ equity
= 10,536 ÷ 25,058 = 0.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Costco Wholesale Corp. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Costco Wholesale Corp., debt to capital calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,081) | 73) | 799) | 95) | 1,699) | 90) | |
| Current finance lease liabilities | 129) | 245) | 72) | 31) | 26) | 7) | |
| Long-term debt, excluding current portion | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | 6,487) | |
| Long-term finance lease liabilities | 1,303) | 1,383) | 980) | 657) | 395) | 390) | |
| Total debt | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | 6,974) | |
| Total Costco stockholders’ equity | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | 12,799) | |
| Total capital | 32,948) | 28,827) | 26,107) | 26,581) | 22,487) | 19,773) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.24 | 0.28 | 0.33 | 0.31 | 0.32 | 0.35 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Target Corp. | 0.59 | 0.52 | 0.47 | 0.49 | 0.50 | — | |
| Walmart Inc. | 0.37 | 0.34 | 0.38 | 0.42 | 0.44 | — | |
| Debt to Capital, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.38 | 0.36 | 0.38 | 0.41 | 0.44 | — | |
| Debt to Capital, Industry | |||||||
| Consumer Staples | 0.51 | 0.50 | 0.51 | 0.53 | 0.52 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,890 ÷ 32,948 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Costco Wholesale Corp. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Costco Wholesale Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,081) | 73) | 799) | 95) | 1,699) | 90) | |
| Current finance lease liabilities | 129) | 245) | 72) | 31) | 26) | 7) | |
| Long-term debt, excluding current portion | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | 6,487) | |
| Long-term finance lease liabilities | 1,303) | 1,383) | 980) | 657) | 395) | 390) | |
| Total debt | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | 6,974) | |
| Current operating lease liabilities (included in other current liabilities in the consolidated balance sheets) | 220) | 239) | 222) | 231) | —) | —) | |
| Long-term operating lease liabilities | 2,426) | 2,482) | 2,642) | 2,558) | —) | —) | |
| Total debt (including operating lease liability) | 10,536) | 10,906) | 11,407) | 11,086) | 7,244) | 6,974) | |
| Total Costco stockholders’ equity | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | 12,799) | |
| Total capital (including operating lease liability) | 35,594) | 31,548) | 28,971) | 29,370) | 22,487) | 19,773) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.30 | 0.35 | 0.39 | 0.38 | 0.32 | 0.35 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 0.63 | 0.56 | 0.51 | 0.54 | 0.54 | — | |
| Walmart Inc. | 0.43 | 0.41 | 0.44 | 0.49 | 0.44 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.44 | 0.42 | 0.44 | 0.48 | 0.44 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 0.53 | 0.52 | 0.53 | 0.56 | 0.52 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 10,536 ÷ 35,594 = 0.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Costco Wholesale Corp. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Costco Wholesale Corp., debt to assets calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,081) | 73) | 799) | 95) | 1,699) | 90) | |
| Current finance lease liabilities | 129) | 245) | 72) | 31) | 26) | 7) | |
| Long-term debt, excluding current portion | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | 6,487) | |
| Long-term finance lease liabilities | 1,303) | 1,383) | 980) | 657) | 395) | 390) | |
| Total debt | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | 6,974) | |
| Total assets | 68,994) | 64,166) | 59,268) | 55,556) | 45,400) | 40,830) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.11 | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Target Corp. | 0.30 | 0.25 | 0.25 | 0.27 | 0.27 | — | |
| Walmart Inc. | 0.18 | 0.17 | 0.19 | 0.23 | 0.26 | — | |
| Debt to Assets, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.19 | 0.18 | 0.19 | 0.22 | 0.25 | — | |
| Debt to Assets, Industry | |||||||
| Consumer Staples | 0.30 | 0.29 | 0.30 | 0.33 | 0.33 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,890 ÷ 68,994 = 0.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Costco Wholesale Corp. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Costco Wholesale Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,081) | 73) | 799) | 95) | 1,699) | 90) | |
| Current finance lease liabilities | 129) | 245) | 72) | 31) | 26) | 7) | |
| Long-term debt, excluding current portion | 5,377) | 6,484) | 6,692) | 7,514) | 5,124) | 6,487) | |
| Long-term finance lease liabilities | 1,303) | 1,383) | 980) | 657) | 395) | 390) | |
| Total debt | 7,890) | 8,185) | 8,543) | 8,297) | 7,244) | 6,974) | |
| Current operating lease liabilities (included in other current liabilities in the consolidated balance sheets) | 220) | 239) | 222) | 231) | —) | —) | |
| Long-term operating lease liabilities | 2,426) | 2,482) | 2,642) | 2,558) | —) | —) | |
| Total debt (including operating lease liability) | 10,536) | 10,906) | 11,407) | 11,086) | 7,244) | 6,974) | |
| Total assets | 68,994) | 64,166) | 59,268) | 55,556) | 45,400) | 40,830) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.15 | 0.17 | 0.19 | 0.20 | 0.16 | 0.17 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 0.36 | 0.31 | 0.29 | 0.33 | 0.33 | — | |
| Walmart Inc. | 0.24 | 0.23 | 0.25 | 0.31 | 0.26 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.24 | 0.23 | 0.25 | 0.29 | 0.26 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 0.33 | 0.32 | 0.33 | 0.36 | 0.33 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 10,536 ÷ 68,994 = 0.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Costco Wholesale Corp. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Costco Wholesale Corp., financial leverage calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 68,994) | 64,166) | 59,268) | 55,556) | 45,400) | 40,830) | |
| Total Costco stockholders’ equity | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | 12,799) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.75 | 3.11 | 3.37 | 3.04 | 2.98 | 3.19 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Target Corp. | 4.75 | 4.20 | 3.55 | 3.62 | 3.65 | — | |
| Walmart Inc. | 3.17 | 2.94 | 3.12 | 3.17 | 3.02 | — | |
| Financial Leverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 3.24 | 3.11 | 3.21 | 3.20 | 3.09 | — | |
| Financial Leverage, Industry | |||||||
| Consumer Staples | 3.47 | 3.40 | 3.45 | 3.50 | 3.28 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Financial leverage = Total assets ÷ Total Costco stockholders’ equity
= 68,994 ÷ 25,058 = 2.75
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Costco Wholesale Corp. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Costco Wholesale Corp., interest coverage calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Costco | 6,292) | 5,844) | 5,007) | 4,002) | 3,659) | 3,134) | |
| Add: Net income attributable to noncontrolling interest | —) | 71) | 72) | 57) | 45) | 45) | |
| Add: Income tax expense | 2,195) | 1,925) | 1,601) | 1,308) | 1,061) | 1,263) | |
| Add: Interest expense | 160) | 158) | 171) | 160) | 150) | 159) | |
| Earnings before interest and tax (EBIT) | 8,647) | 7,998) | 6,851) | 5,527) | 4,915) | 4,601) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 54.04 | 50.62 | 40.06 | 34.54 | 32.77 | 28.94 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Target Corp. | 8.15 | 22.16 | 6.68 | 9.78 | 8.97 | — | |
| Walmart Inc. | 9.00 | 10.38 | 9.88 | 8.74 | 5.88 | — | |
| Interest Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 11.46 | 14.77 | 10.47 | 10.17 | 7.73 | — | |
| Interest Coverage, Industry | |||||||
| Consumer Staples | 11.88 | 14.21 | 10.01 | 10.46 | 7.90 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 8,647 ÷ 160 = 54.04
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Costco Wholesale Corp. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Costco Wholesale Corp., fixed charge coverage calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Costco | 6,292) | 5,844) | 5,007) | 4,002) | 3,659) | 3,134) | |
| Add: Net income attributable to noncontrolling interest | —) | 71) | 72) | 57) | 45) | 45) | |
| Add: Income tax expense | 2,195) | 1,925) | 1,601) | 1,308) | 1,061) | 1,263) | |
| Add: Interest expense | 160) | 158) | 171) | 160) | 150) | 159) | |
| Earnings before interest and tax (EBIT) | 8,647) | 7,998) | 6,851) | 5,527) | 4,915) | 4,601) | |
| Add: Operating lease costs | 309) | 297) | 296) | 252) | 268) | 265) | |
| Earnings before fixed charges and tax | 8,956) | 8,295) | 7,147) | 5,779) | 5,183) | 4,866) | |
| Interest expense | 160) | 158) | 171) | 160) | 150) | 159) | |
| Operating lease costs | 309) | 297) | 296) | 252) | 268) | 265) | |
| Fixed charges | 469) | 455) | 467) | 412) | 418) | 424) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 19.10 | 18.23 | 15.30 | 14.03 | 12.40 | 11.48 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Target Corp. | 4.62 | 12.02 | 5.24 | 6.48 | 6.16 | — | |
| Walmart Inc. | 4.84 | 5.38 | 5.16 | 4.82 | 3.14 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 5.95 | 7.41 | 5.88 | 5.60 | 4.07 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Staples | 7.71 | 8.59 | 6.77 | 6.80 | 5.01 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 8,956 ÷ 469 = 19.10
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Costco Wholesale Corp. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |