Stock Analysis on Net
Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Costco Wholesale Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Accounts payable 27.81 25.34 27.82 27.47 25.51 25.72
Accrued salaries and benefits 6.87 6.20 6.83 6.90 6.49 7.00
Accrued member rewards 3.49 3.12 2.98 2.82 2.51 2.60
Deferred membership fees 3.58 3.39 3.39 3.45 3.33 3.77
Current portion of long-term debt 0.15 1.57 0.11 1.35 0.17 3.74
Current finance lease liabilities 0.21 0.19 0.38 0.12 0.06 0.06
Other current liabilities 8.68 8.88 8.36 7.57 6.65 8.30
Current liabilities 50.79% 48.68% 49.87% 49.67% 44.72% 51.18%
Long-term debt, excluding current portion 8.30 7.79 10.11 11.29 13.53 11.29
Long-term operating lease liabilities 3.40 3.52 3.87 4.46 4.60 0.00
Long-term finance lease liabilities 1.93 1.89 2.16 1.65 1.18 0.87
Other long-term liabilities 1.75 1.81 1.83 2.42 2.30 2.33
Long-term liabilities 15.39% 15.01% 17.95% 19.82% 21.61% 14.49%
Total liabilities 66.17% 63.68% 67.82% 69.50% 66.33% 65.67%
Preferred stock $.005 par value; no shares issued and outstanding 0.00 0.00 0.00 0.00 0.00 0.00
Common stock $.005 par value 0.00 0.00 0.00 0.01 0.01 0.01
Additional paid-in capital 11.21 10.64 10.73 11.86 12.06 14.13
Accumulated other comprehensive loss -2.62 -2.62 -2.85 -1.92 -2.33 -3.16
Retained earnings 25.23 28.29 24.29 19.68 23.18 22.59
Total Costco stockholders’ equity 33.83% 36.32% 32.17% 29.63% 32.91% 33.57%
Noncontrolling interests 0.00 0.00 0.01 0.87 0.76 0.75
Total equity 33.83% 36.32% 32.18% 30.50% 33.67% 34.33%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2024-09-01), 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).

Liabilities Analysis

Current liabilities as a percentage of total liabilities and equity exhibited moderate fluctuations over the periods. They began at 51.18% in 2019, decreased notably to 44.72% in 2020, then generally increased to reach 50.79% by 2024. This suggests variability in short-term obligations, with a general tendency to stabilize near the initial ratio.

Accounts payable, a significant component of current liabilities, showed an overall increasing trend from 25.72% in 2019 to 27.81% in 2024, despite some intermediate decreases. This increase points to a higher reliance on trade credit or extended supplier payment terms.

Accrued member rewards consistently rose over the years, from 2.6% in 2019 to 3.49% in 2024, indicating a growing commitment to customer loyalty programs, which may reflect increased membership benefits or sales incentives.

Accrued salaries and benefits remained relatively stable but showed a slight decline from 7% in 2019 to 6.87% in 2024, with a dip to 6.2% in 2023, possibly reflecting payroll management or workforce dynamics.

Deferred membership fees stayed fairly consistent around the 3.3-3.6% range, hinting at steady membership growth or consistent fee structures.

The current portion of long-term debt presented volatility with a notable drop to 0.17% in 2020, then a slight increase up to 1.57% in 2023, before decreasing again, indicating adjustments in debt maturities or refinancing activities.

Current finance lease liabilities increased somewhat from 0.06% in 2019 to 0.21% in 2024, which may reflect incremental lease obligations under evolving accounting standards.

Other current liabilities fluctuated but generally stayed close to the 8% range; from 8.3% in 2019 to 8.68% in 2024, implying consistent miscellaneous short-term obligations.

Long-term liabilities decreased notably from 14.49% in 2019 to 15.39% in 2024, peaking at 21.61% in 2020. This variation is primarily attributable to changes in long-term debt, which declined from 11.29% in 2019 to 8.3% in 2024, highlighting debt reduction or repayment trends.

Long-term operating lease liabilities showed a declining trajectory from 4.6% in 2020 to 3.4% in 2024, while finance lease liabilities increased from 0.87% to 1.93%, signifying shifting lease commitments.

Other long-term liabilities decreased slightly from 2.33% in 2019 to 1.75% in 2024.

Overall, total liabilities as a portion of total liabilities and equity exhibited some volatility but showed a slight reduction from 65.67% in 2019 to 66.17% in 2024, with a peak at 69.5% in 2021. This suggests a relatively stable but moderately leveraged capital structure.

Equity Analysis

Total equity accounted for roughly one-third of total liabilities and equity throughout the periods. It decreased from 34.33% in 2019 to 30.5% in 2021, before increasing to 36.32% in 2023 and settling at 33.83% in 2024. This fluctuating pattern indicates changes in retained earnings, share capital, or other comprehensive income components.

Retained earnings showed an overall positive trend, rising from 22.59% in 2019 to 25.23% in 2024, peaking at 28.29% in 2023. This growth reflects sustained profitability and accumulation of earnings within the company.

Additional paid-in capital slightly decreased from 14.13% in 2019 to 11.21% in 2024, indicative of limited new equity issuances or buyback activities.

Accumulated other comprehensive loss improved from -3.16% in 2019 to -2.62% in 2024, suggesting a reduction in unrealized losses or negative valuation adjustments over time.

Common stock remained negligible at around 0.01% or zero, reflecting the minimal par value of issued shares.

Noncontrolling interests were present but became negligible by 2023 and 2024, indicating potential buyouts or consolidation changes.

Overall Capital Structure Insights

The company's capital structure is characterized by a predominantly balanced mix of liabilities and equity with total liabilities representing around two-thirds and equity about one-third of the capital base.

There is evidence of prudent debt management, notably through the reduction in long-term debt percentages and adjustment in current debt portions, which may enhance financial flexibility.

The increase in accounts payable and accrued member rewards indicates growing operational commitments, possibly aligned with an expansion strategy or enhanced customer engagement.

Equity trends, particularly the growth in retained earnings and stability in additional paid-in capital, reflect sustained profitability and stable investor support over the examined periods.