Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Aug 31, 2025	Sep 1, 2024	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020
Accounts payable	19,783)	19,421)	17,483)	17,848)	16,278)	14,172)
Accrued salaries and benefits	5,205)	4,794)	4,278)	4,381)	4,090)	3,605)
Accrued member rewards	2,677)	2,435)	2,150)	1,911)	1,671)	1,393)
Deferred membership fees	2,854)	2,501)	2,337)	2,174)	2,042)	1,851)
Current portion of long-term debt	75)	103)	1,081)	73)	799)	95)
Current finance lease liabilities	78)	147)	129)	245)	72)	31)
Other current liabilities	6,436)	6,063)	6,125)	5,366)	4,489)	3,697)
Current liabilities	37,108)	35,464)	33,583)	31,998)	29,441)	24,844)
Long-term debt, excluding current portion	5,713)	5,794)	5,377)	6,484)	6,692)	7,514)
Long-term operating lease liabilities	2,460)	2,375)	2,426)	2,482)	2,642)	2,558)
Long-term finance lease liabilities	1,401)	1,351)	1,303)	1,383)	980)	657)
Other long-term liabilities	1,253)	1,225)	1,247)	1,172)	1,435)	1,278)
Long-term liabilities	10,827)	10,745)	10,353)	11,521)	11,749)	12,007)
Total liabilities	47,935)	46,209)	43,936)	43,519)	41,190)	36,851)
Preferred stock $.005 par value; no shares issued and outstanding	—)	—)	—)	—)	—)	—)
Common stock $.005 par value	2)	2)	2)	2)	4)	4)
Additional paid-in capital	8,282)	7,829)	7,340)	6,884)	7,031)	6,698)
Accumulated other comprehensive loss	(1,770)	(1,828)	(1,805)	(1,829)	(1,137)	(1,297)
Retained earnings	22,650)	17,619)	19,521)	15,585)	11,666)	12,879)
Total Costco stockholders’ equity	29,164)	23,622)	25,058)	20,642)	17,564)	18,284)
Noncontrolling interests	—)	—)	—)	5)	514)	421)
Total equity	29,164)	23,622)	25,058)	20,647)	18,078)	18,705)
Total liabilities and equity	77,099)	69,831)	68,994)	64,166)	59,268)	55,556)

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

Current liabilities have shown a consistent upward trend from 24.8 billion to 37.1 billion US dollars over the time period, indicating an increase in short-term obligations. Accounts payable rose steadily from 14.2 billion to 19.8 billion US dollars, reflecting higher trade payables or purchases on credit. Accrued salaries and benefits also increased from 3.6 billion to 5.2 billion US dollars, suggesting rising personnel costs. Accrued member rewards and deferred membership fees grew notably, indicating an expansion in customer loyalty obligations and prepaid membership revenues. The current portion of long-term debt fluctuated without a clear trend, while current finance lease liabilities showed variability but ended lower than peak values.

Long-term liabilities decreased from 12.0 billion to approximately 10.8 billion US dollars, with a decline in long-term debt excluding the current portion from 7.5 billion to around 5.7 billion US dollars. Long-term operating lease liabilities remained relatively stable, slightly declining, whereas long-term finance lease liabilities increased steadily from 657 million to 1.4 billion US dollars. Other long-term liabilities remained stable over the period. Overall, total liabilities increased from 36.9 billion to 47.9 billion US dollars, demonstrating growing total obligations but with a shift from long-term debt to current liabilities and lease-related liabilities.

Equity

Common stock remained nominal and unchanged at 2 to 4 million US dollars, representing a fixed par value. Additional paid-in capital showed a moderate increase from 6.7 billion to 8.3 billion US dollars, suggesting ongoing capital contributions or stock-based compensation. Accumulated other comprehensive loss ranged between -1.3 billion and -1.8 billion US dollars with some volatility, indicating fluctuations in unrealized losses on items such as foreign currency translation or pension obligations.

Retained earnings generally grew from 12.9 billion to 22.7 billion US dollars despite some interim decreases, reflecting accumulation of net income over dividends distributed. Total stockholders’ equity increased from 18.3 billion to 29.2 billion US dollars, showing an improvement in the net asset base of the company. The equity balance increased consistently, supporting financial stability and capacity to cover liabilities.

Overall Financial Position

Total liabilities and equity grew from 55.6 billion to 77.1 billion US dollars, indicating expansion in the company’s scale of operations and financing. The increase was driven mainly by growth in current liabilities and equity rather than long-term liabilities. This may reflect a strategic approach to financing more through short-term obligations and equity retention rather than long-term debt accumulation.

In summary, the company demonstrated an increasing scale of operations with rising obligations mainly in current liabilities and lease liabilities. The equity base strengthened steadily, supported by retained earnings growth and additional capital. The reduction in long-term debt components suggests a cautious approach to leverage, while lease liabilities increased possibly due to changes in accounting standards or operational decisions. Overall, the financial data reflect growth, an increase in financial commitments primarily on the short-term side, and a solid increase in net equity position, indicating robust financial health and sustainable growth potential.

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Costco Wholesale Corp. (NASDAQ:COST)

Balance Sheet: Liabilities and Stockholders’ Equity