Name: Costco Wholesale Corp. (NASDAQ:COST) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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

US$ in millions

	Aug 30, 2026	Aug 31, 2025	Sep 1, 2024	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021
Accounts payable	22,591)	19,783)	19,421)	17,483)	17,848)	16,278)
Accrued salaries and benefits	5,641)	5,205)	4,794)	4,278)	4,381)	4,090)
Accrued member rewards	3,037)	2,677)	2,435)	2,150)	1,911)	1,671)
Deferred membership fees	3,006)	2,854)	2,501)	2,337)	2,174)	2,042)
Current portion of long-term debt	2,248)	75)	103)	1,081)	73)	799)
Current finance lease liabilities	94)	78)	147)	129)	245)	72)
Other current liabilities	7,335)	6,436)	6,063)	6,125)	5,366)	4,489)
Current liabilities	43,952)	37,108)	35,464)	33,583)	31,998)	29,441)
Long-term debt, excluding current portion	3,914)	5,713)	5,794)	5,377)	6,484)	6,692)
Long-term operating lease liabilities	2,414)	2,460)	2,375)	2,426)	2,482)	2,642)
Long-term finance lease liabilities	1,319)	1,401)	1,351)	1,303)	1,383)	980)
Other long-term liabilities	1,643)	1,253)	1,225)	1,247)	1,172)	1,435)
Long-term liabilities	9,290)	10,827)	10,745)	10,353)	11,521)	11,749)
Total liabilities	53,242)	47,935)	46,209)	43,936)	43,519)	41,190)
Preferred stock $.005 par value; no shares issued and outstanding	—)	—)	—)	—)	—)	—)
Common stock $.005 par value	2)	2)	2)	2)	2)	4)
Additional paid-in capital	8,830)	8,282)	7,829)	7,340)	6,884)	7,031)
Accumulated other comprehensive loss	(1,620)	(1,770)	(1,828)	(1,805)	(1,829)	(1,137)
Retained earnings	28,591)	22,650)	17,619)	19,521)	15,585)	11,666)
Total Costco stockholders’ equity	35,803)	29,164)	23,622)	25,058)	20,642)	17,564)
Noncontrolling interests	—)	—)	—)	—)	5)	514)
Total equity	35,803)	29,164)	23,622)	25,058)	20,647)	18,078)
Total liabilities and equity	89,045)	77,099)	69,831)	68,994)	64,166)	59,268)

Based on: 10-K (reporting date: 2026-08-30), 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).

The financial position exhibits a consistent expansion in total liabilities and equity, growing from 59,268 million US$ in 2021 to 89,045 million US$ by 2026. This growth is characterized by a strategic shift in the composition of liabilities, with a marked increase in short-term operational obligations and a concurrent reduction in long-term debt.

Current Liabilities and Operational Obligations: Current liabilities demonstrate a steady upward trajectory, increasing from 29,441 million US$ in 2021 to 43,952 million US$ in 2026. This trend is primarily driven by accounts payable, which rose from 16,278 million US$ to 22,591 million US$ over the period, suggesting an increase in inventory procurement or a strategic extension of supplier payment terms. Accrued member rewards and deferred membership fees also show consistent growth, reflecting a widening membership base and increased loyalty program utilization.
Long-Term Debt and Solvency: A notable contraction is observed in long-term debt, excluding the current portion, which decreased from 6,692 million US$ in 2021 to 3,914 million US$ in 2026. Total long-term liabilities followed a similar downward path, ending at 9,290 million US$ in 2026 compared to 11,749 million US$ in 2021. This indicates a deliberate reduction in long-term leverage and a strengthening of the overall solvency profile.
Stockholders' Equity and Capital Accumulation: Total stockholders' equity experienced significant growth, rising from 17,564 million US$ in 2021 to 35,803 million US$ in 2026. The primary catalyst for this increase is the substantial growth in retained earnings, which climbed from 11,666 million US$ to 28,591 million US$, despite a temporary contraction in 2024. Additionally, additional paid-in capital increased steadily from 7,031 million US$ to 8,830 million US$, indicating ongoing capital contributions.
Comprehensive Loss and Other Factors: Accumulated other comprehensive loss remained relatively stable, fluctuating between -1,137 million US$ and -1,829 million US$ throughout the period, suggesting that unrealized losses on investments or currency translations have not significantly impacted the overall equity trajectory. Noncontrolling interests were virtually eliminated after 2022, streamlining the equity structure.

The overall trend indicates a transition toward a more equity-heavy capital structure. The combination of decreasing long-term debt and rapidly increasing retained earnings suggests a high degree of internal funding capability and a reduced reliance on external long-term financing to support operational growth.

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