Stock Analysis on Net
Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

Common-Size Income Statement 
Quarterly Data

Costco Wholesale Corp., common-size consolidated income statement (quarterly data)

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3 months ended: May 10, 2026 Feb 15, 2026 Nov 23, 2025 Aug 31, 2025 May 11, 2025 Feb 16, 2025 Nov 24, 2024 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
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Merchandise costs -88.96 -88.98 -88.68 -88.87 -88.75 -89.15 -88.73 -89.00 -89.16 -89.20 -88.96 -89.40 -89.68 -89.28 -89.39 -89.82 -89.81 -89.36 -88.94 -89.08 -88.82 -89.04 -88.45 -88.76 -88.47 -89.02 -88.95
Gross margin 11.04% 11.02% 11.32% 11.13% 11.25% 10.85% 11.27% 11.00% 10.84% 10.80% 11.04% 10.60% 10.32% 10.72% 10.61% 10.18% 10.19% 10.64% 11.06% 10.92% 11.18% 10.96% 11.55% 11.24% 11.53% 10.98% 11.05%
Membership fees 1.99 1.99 2.01 2.04 2.00 1.91 1.91 1.93 1.96 1.94 1.91 1.95 1.98 1.89 1.87 1.88 1.91 1.90 1.91 2.01 2.03 2.01 2.03 2.12 2.24 2.13 2.22
Selling, general and administrative -8.96 -9.19 -9.60 -9.21 -9.16 -9.06 -9.59 -9.04 -8.96 -9.14 -9.45 -8.96 -9.11 -9.11 -9.20 -8.53 -8.62 -8.98 -9.55 -9.22 -9.46 -9.91 -10.20 -9.67 -10.53 -9.80 -10.34
Operating income 4.07% 3.82% 3.73% 3.96% 4.08% 3.70% 3.60% 3.89% 3.83% 3.60% 3.50% 3.59% 3.19% 3.51% 3.28% 3.53% 3.47% 3.56% 3.43% 3.70% 3.75% 3.05% 3.38% 3.69% 3.23% 3.31% 2.93%
Interest expense -0.05 -0.05 -0.05 -0.05 -0.06 -0.06 -0.06 -0.06 -0.07 -0.07 -0.07 -0.07 -0.07 -0.06 -0.06 -0.07 -0.07 -0.07 -0.08 -0.08 -0.09 -0.09 -0.09 -0.10 -0.10 -0.09 -0.10
Interest income and other, net 0.22 0.22 0.23 0.25 0.14 0.23 0.24 0.15 0.22 0.38 0.28 0.31 0.24 0.21 0.10 0.09 0.14 0.05 0.08 0.11 0.06 0.04 0.07 -0.02 0.06 0.12 0.10
Other income (expense) 0.18% 0.17% 0.18% 0.20% 0.08% 0.17% 0.18% 0.09% 0.15% 0.31% 0.22% 0.24% 0.17% 0.15% 0.04% 0.03% 0.07% -0.02% 0.01% 0.03% -0.03% -0.05% -0.02% -0.11% -0.04% 0.03% -0.01%
Income before income taxes 4.25% 3.99% 3.91% 4.16% 4.16% 3.87% 3.78% 3.98% 3.98% 3.90% 3.71% 3.83% 3.37% 3.66% 3.31% 3.56% 3.54% 3.54% 3.43% 3.73% 3.72% 3.01% 3.35% 3.58% 3.19% 3.34% 2.92%
Provision for income taxes -1.08 -1.01 -0.88 -1.07 -1.09 -1.01 -0.83 -0.97 -1.05 -0.86 -0.91 -1.04 -0.89 -0.95 -0.76 -0.90 -0.88 -0.94 -0.71 -0.97 -0.94 -0.79 -0.56 -0.89 -0.85 -0.86 -0.56
Net income including noncontrolling interests 3.17% 2.98% 3.03% 3.09% 3.07% 2.86% 2.95% 3.01% 2.93% 3.04% 2.80% 2.79% 2.48% 2.70% 2.55% 2.65% 2.66% 2.59% 2.72% 2.76% 2.78% 2.21% 2.79% 2.69% 2.34% 2.48% 2.36%
Net income attributable to noncontrolling interests 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 -0.04 -0.04 -0.04 -0.04 -0.03 -0.05 -0.04 -0.03 -0.04 -0.04 -0.03
Net income attributable to Costco 3.17% 2.98% 3.03% 3.09% 3.07% 2.86% 2.95% 3.01% 2.93% 3.04% 2.80% 2.79% 2.48% 2.70% 2.55% 2.64% 2.62% 2.55% 2.68% 2.72% 2.75% 2.17% 2.75% 2.66% 2.30% 2.43% 2.33%

Based on: 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24).

Financial performance over the analyzed period demonstrates a gradual improvement in operational efficiency and profitability margins. Operating income as a percentage of net sales has transitioned from 2.93% in late 2019 to a peak of 4.07% by mid-2026, reflecting an overall strengthening of the core business model.

Gross Margin and Cost of Goods Sold
Merchandise costs have remained relatively stable, typically fluctuating between 88.4% and 89.8% of net sales. Consequently, the gross margin has largely maintained a range between 10.2% and 11.6%. A period of margin compression was observed between early and mid-2022, where gross margins dipped to approximately 10.2%, followed by a steady recovery toward 11.0% in the subsequent years.
Operational Expense Management
Selling, general, and administrative (SG&A) expenses showed a general downward trend relative to net sales. Initial values near 10.3% in 2019 decreased to a low of 8.5% in mid-2022. Although recent periods show a slight increase, the ratio remains consistently lower than the 2019 baseline, which has served as a primary driver for the expansion of the operating margin.
Membership Fee Contribution
Membership fees as a percentage of net sales have experienced a slight contraction, moving from 2.2% in 2019 to a stable range between 1.9% and 2.0% from 2021 through 2026. This pattern indicates that the growth in total net sales has outpaced the growth in membership fee revenue during this timeframe.
Net Profitability and Non-Operating Items
Net income attributable to the company has exhibited an overall upward trajectory, rising from 2.33% of net sales in November 2019 to 3.17% by May 2026. This growth is supported by expanded operating margins and a positive trend in interest income and other non-operating income, which effectively offset the minimal and slightly declining interest expense.

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