Stock Analysis on Net
 NEW 
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

Microsoft Excel
Aug 31, 2025 Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020
Accounts payable 25.66 27.81 25.34 27.82 27.47 25.51
Accrued salaries and benefits 6.75 6.87 6.20 6.83 6.90 6.49
Accrued member rewards 3.47 3.49 3.12 2.98 2.82 2.51
Deferred membership fees 3.70 3.58 3.39 3.39 3.45 3.33
Current portion of long-term debt 0.10 0.15 1.57 0.11 1.35 0.17
Current finance lease liabilities 0.10 0.21 0.19 0.38 0.12 0.06
Other current liabilities 8.35 8.68 8.88 8.36 7.57 6.65
Current liabilities 48.13% 50.79% 48.68% 49.87% 49.67% 44.72%
Long-term debt, excluding current portion 7.41 8.30 7.79 10.11 11.29 13.53
Long-term operating lease liabilities 3.19 3.40 3.52 3.87 4.46 4.60
Long-term finance lease liabilities 1.82 1.93 1.89 2.16 1.65 1.18
Other long-term liabilities 1.63 1.75 1.81 1.83 2.42 2.30
Long-term liabilities 14.04% 15.39% 15.01% 17.95% 19.82% 21.61%
Total liabilities 62.17% 66.17% 63.68% 67.82% 69.50% 66.33%
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 0.00 0.01 0.01
Additional paid-in capital 10.74 11.21 10.64 10.73 11.86 12.06
Accumulated other comprehensive loss -2.30 -2.62 -2.62 -2.85 -1.92 -2.33
Retained earnings 29.38 25.23 28.29 24.29 19.68 23.18
Total Costco stockholders’ equity 37.83% 33.83% 36.32% 32.17% 29.63% 32.91%
Noncontrolling interests 0.00 0.00 0.00 0.01 0.87 0.76
Total equity 37.83% 33.83% 36.32% 32.18% 30.50% 33.67%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-08-31), 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).

Liabilities Trends

The overall proportion of total liabilities relative to total liabilities and equity has experienced fluctuations, starting at 66.33% in 2020, peaking at 69.5% in 2021, then gradually decreasing to 62.17% by 2025. This indicates a modest reduction in leverage over the examined period.

Current liabilities consistently constitute a significant portion of total liabilities and equity, ranging between approximately 44.72% and 50.79%. After rising notably from 44.72% in 2020 to a high of 50.79% in 2024, current liabilities decreased slightly to 48.13% in 2025.

Within current liabilities, accounts payable remained relatively stable, fluctuating around the mid-20% range, with values near 25-28%. Accrued salaries and benefits demonstrated a slight increase from 6.49% in 2020 to 6.75% in 2025, exhibiting moderate stability.

Accrued member rewards steadily increased from 2.51% in 2020 to an elevated level of 3.47% in 2025, reflecting a growing commitment to member incentives. Deferred membership fees also showed gradual growth, from 3.33% to 3.70% over the same period.

The current portion of long-term debt and current finance lease liabilities showed variability but remained a relatively minor component, mostly under 1.6% combined.

Other current liabilities expanded from 6.65% to a peak of 8.88% in 2023, followed by a slight decline to 8.35% in 2025.

Long-term liabilities depicted a clear downward trend, contracting from 21.61% in 2020 to 14.04% in 2025. This decline is driven primarily by decreases in long-term debt (excluding current portion), which fell significantly from 13.53% to 7.41%, and reductions in long-term operating lease liabilities and other long-term liabilities.

Long-term finance lease liabilities modestly increased early in the period but declined thereafter, signaling adjustments in leasing strategies.

Equity Trends

Stockholders' equity as a percentage of total liabilities and equity saw a general increase after an initial decline, moving from 33.67% in 2020 down to 30.5% in 2021, then rising to 37.83% in 2025. This suggests strengthening equity financing in recent years.

Retained earnings experienced variability but overall increased from 23.18% in 2020 to 29.38% in 2025, highlighting accumulation of earnings and reinvestment over time.

Additional paid-in capital decreased slightly from 12.06% in 2020 to around 10.74% in 2025, indicating minor changes in capital contributions.

Accumulated other comprehensive loss remained negative but showed some reduction in magnitude, from -2.33% to -2.3%, suggesting relatively stable comprehensive income components outside net earnings.

Common stock accounted for a negligible proportion or was not recorded beyond 2021, implying no significant changes in par value or issued shares.

Key Insights

The company appears to be managing its capital structure by gradually reducing long-term debt and shifting towards a higher equity base. The increase in retained earnings supports this trend of equity strengthening.

Current liabilities remain dominant within the liability structure, primarily driven by consistent accounts payable and other current liabilities, though accrued member rewards and deferred membership fees show upward momentum, reflecting growing membership-related liabilities.

The decrease in long-term operating lease liabilities and long-term debt suggests possible debt repayment or restructuring efforts, as well as potential changes in leasing arrangements.

The overall stability in additional paid-in capital and other comprehensive loss indicates relatively constant equity components aside from retained earnings.

In summary, the financial structure shows a cautious shift from long-term debt financing to stronger equity backing, alongside stable to slightly increasing current liabilities consistent with business operations and member reward accruals.