Costco Wholesale Corp. (NASDAQ:COST)

Land

The value of land shows a consistent upward trend over the analyzed periods, increasing steadily from 6,696 million US dollars to 10,323 million US dollars. This increase suggests ongoing acquisition or revaluation of land assets, reflecting an expansion of the company's real estate holdings.

Buildings and Improvements

Buildings and improvements exhibit consistent growth each year, rising from 17,982 million US dollars to 25,508 million US dollars. The steady increase indicates continued investment in physical infrastructure and enhancements, likely to support operational capacity and efficiency improvements.

Equipment and Fixtures

Equipment and fixtures also show a positive growth trajectory, increasing from 8,749 million US dollars to 13,127 million US dollars. This growth highlights ongoing capital expenditure directed towards upgrading or adding equipment, which may relate to modernization or expansion efforts.

Construction in Progress

Construction in progress fluctuates within the periods, initially rising from 1,276 million US dollars to a peak of 1,582 million before dipping to 1,266 million and then increasing again to 1,882 million. This variance suggests periods of active project development followed by phases where projects are completed and capitalized into fixed assets.

Property and Equipment, Gross

The gross property and equipment balance shows a strong upward trend, increasing from 34,703 million US dollars to 50,840 million US dollars. This reflects the cumulative effect of asset additions across all categories, indicating substantial investments in fixed assets over time.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization increase consistently in absolute value from -12,896 million US dollars to -18,931 million US dollars. The growth in accumulated depreciation aligns with the rising asset base and indicates ongoing aging and usage of fixed assets that require amortization.

Property and Equipment, Net

The net property and equipment, calculated as gross property less accumulated depreciation, shows a steady increase from 21,807 million US dollars to 31,909 million US dollars. The growth in net property indicates that asset additions and capital investments have outpaced depreciation, suggesting expansion and renewal of the asset base.

The analysis of the average age ratio for property, plant, and equipment over the examined periods reveals a relatively stable trend with minor fluctuations. Starting from 46.05% in 2020, the ratio increased modestly each year, reaching its peak at 47.97% in 2023. This gradual rise indicates a slight aging of the asset base, suggesting that a considerable portion of the assets has been in use for a longer duration over the years.

However, from 2024 onward, there is a noticeable decrease in the average age ratio, falling to 46.72% by 2025. This decline could imply renewed investment in newer assets or disposal of older equipment, effectively lowering the average age of the total property, plant, and equipment. The relative stability and the recent downward shift point to active asset management and possible capital expenditure to modernize the asset base.

Trend Summary:

The average age ratio showed a slow upward trend from 2020 to 2023, indicating aging assets.

From 2023 to 2025, a decline in the ratio suggests asset renewal or replacement activities.

Overall, the average age ratio remained within a narrow range, highlighting steady asset management practices.

The analysis of the property, plant, and equipment data over the period shows consistent growth and notable changes in the company's asset base and related depreciation.

Property and Equipment, Gross

The gross value of property and equipment has demonstrated a steady increase from approximately $34.7 billion in 2020 to $50.8 billion in 2025. This upward trend reflects ongoing capital investments and expansion in fixed assets over the analyzed years.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization have also increased steadily, rising from roughly $12.9 billion in 2020 to $18.9 billion in 2025. This increase is consistent with the growing asset base and signals ongoing use and aging of the property and equipment assets.

Land Assets

The value attributed to land has grown from about $6.7 billion in 2020 to $10.3 billion in 2025, indicating acquisitions or revaluations of land holdings as part of the company's asset portfolio expansion.

Average Age Ratio

The average age ratio has remained relatively stable over the period, fluctuating narrowly between approximately 46% and 48%. This suggests that the overall age of the property and equipment assets relative to their useful life has been maintained without substantial aging or renewal shifts.

Overall, the data indicate a strategic and continuous increase in fixed assets accompanied by proportional depreciation, reflecting both growth and sustained asset utilization. The stable average age ratio implies balanced asset replacement or upgrading practices to maintain operational efficiency.