Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Costco Wholesale Corp., consolidated income statement

US$ in millions

12 months ended:	Sep 1, 2024	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019
Net sales	249,625)	237,710)	222,730)	192,052)	163,220)	149,351)
Merchandise costs	(222,358)	(212,586)	(199,382)	(170,684)	(144,939)	(132,886)
Gross margin	27,267)	25,124)	23,348)	21,368)	18,281)	16,465)
Membership fees	4,828)	4,580)	4,224)	3,877)	3,541)	3,352)
Selling, general and administrative	(22,810)	(21,590)	(19,779)	(18,537)	(16,387)	(15,080)
Operating income	9,285)	8,114)	7,793)	6,708)	5,435)	4,737)
Interest expense	(169)	(160)	(158)	(171)	(160)	(150)
Interest income	533)	470)	61)	41)	89)	126)
Foreign-currency transaction gains, net	26)	29)	106)	56)	7)	27)
Other, net	65)	34)	38)	46)	(4)	25)
Interest income and other, net	624)	533)	205)	143)	92)	178)
Other income (expense)	455)	373)	47)	(28)	(68)	28)
Income before income taxes	9,740)	8,487)	7,840)	6,680)	5,367)	4,765)
Provision for income taxes	(2,373)	(2,195)	(1,925)	(1,601)	(1,308)	(1,061)
Net income including noncontrolling interests	7,367)	6,292)	5,915)	5,079)	4,059)	3,704)
Net income attributable to noncontrolling interests	—)	—)	(71)	(72)	(57)	(45)
Net income attributable to Costco	7,367)	6,292)	5,844)	5,007)	4,002)	3,659)

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).

The financial data reveals a consistent upward trend in key performance metrics over the observed periods.

Net Sales: Net sales increased steadily each year, rising from $149,351 million in 2019 to $249,625 million in 2024. This reflects a significant growth trajectory, with an approximate 67% increase over the six-year span, indicating sustained demand and expansion.
Merchandise Costs: Merchandise costs also rose in line with net sales, from $132,886 million in 2019 to $222,358 million in 2024. Despite the increase in absolute terms, the gross margin improved, suggesting effective cost management relative to sales growth.
Gross Margin: Gross margin increased annually, from $16,465 million in 2019 to $27,267 million in 2024. This improvement indicates enhanced profitability at the gross profit level, supporting the company's ability to manage costs while expanding revenue.
Membership Fees: Membership fees consistently rose from $3,352 million in 2019 to $4,828 million in 2024, contributing positively to the revenue mix and underscoring customer loyalty and recurring revenue streams.
Selling, General and Administrative Expenses (SG&A): SG&A expenses increased from $15,080 million in 2019 to $22,810 million in 2024. While absolute expenses grew, this aligns with expanding operations and sales volumes. The data suggests ongoing investment in administrative functions supporting business growth.
Operating Income: Operating income grew significantly from $4,737 million in 2019 to $9,285 million in 2024, nearly doubling. This reflects improved operational efficiency and successful margin enhancement strategies.
Net Interest Expense and Income: Interest expense remained relatively stable, fluctuating slightly around $150-$170 million annually. Interest income showed a notable increase in recent years, from $126 million in 2019 to $533 million in 2024, which bolstered net financial income.
Other Income (Expense): Other income net of expenses exhibits variability but trends positively, with a significant increase in 2023 and 2024, reaching $455 million in 2024 from $28 million in 2019. This indicates occasional gains contributing to overall profitability.
Income Before Income Taxes: Income before income taxes mirrored operating performance improvements, ascending from $4,765 million in 2019 to $9,740 million in 2024, suggesting robust pre-tax profitability growth.
Provision for Income Taxes: The provision for income taxes increased consistently in line with income growth, rising from $1,061 million in 2019 to $2,373 million in 2024, reflecting the higher taxable income base.
Net Income: Net income attributable to the company increased markedly, growing from $3,659 million in 2019 to $7,367 million in 2024. This doubling reflects comprehensive improvements in revenue generation, cost control, and other income contributions, signaling strong overall financial health and profitability.

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Costco Wholesale Corp. (NASDAQ:COST)

Income Statement