Name: Costco Wholesale Corp. (NASDAQ:COST) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Costco Wholesale Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Aug 30, 2026	Aug 31, 2025	Sep 1, 2024	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021
Net income including noncontrolling interests	9,226)	8,099)	7,367)	6,292)	5,915)	5,079)
Depreciation and amortization	2,674)	2,426)	2,237)	2,077)	1,900)	1,781)
Non-cash lease expense	318)	303)	315)	412)	377)	286)
Stock-based compensation	924)	860)	818)	774)	724)	665)
Deferred income taxes	306)	(108)	(60)	—)	—)	—)
Other non-cash operating activities, net	49)	(9)	51)	495)	39)	144)
Merchandise inventories	(1,153)	559)	(2,068)	1,228)	(4,003)	(1,892)
Accounts payable	2,755)	404)	1,938)	(382)	1,891)	1,838)
Other operating assets and liabilities, net	718)	801)	741)	172)	549)	1,057)
Changes in operating assets and liabilities	2,320)	1,764)	611)	1,018)	(1,563)	1,003)
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities	6,591)	5,236)	3,972)	4,776)	1,477)	3,879)
Net cash provided by operating activities	15,817)	13,335)	11,339)	11,068)	7,392)	8,958)
Additions to property and equipment	(6,435)	(5,498)	(4,710)	(4,323)	(3,891)	(3,588)
Purchases of short-term investments	(788)	(1,028)	(1,470)	(1,622)	(1,121)	(1,331)
Maturities of short-term investments	811)	1,141)	1,790)	937)	1,145)	1,446)
Other investing activities, net	34)	74)	(19)	36)	(48)	(62)
Net cash used in investing activities	(6,378)	(5,311)	(4,409)	(4,972)	(3,915)	(3,535)
Repayments of short-term borrowings	(577)	(862)	(920)	(935)	(6)	—)
Proceeds from short-term borrowings	553)	816)	928)	917)	53)	41)
Repayments of long-term debt	(69)	(103)	(1,077)	(75)	(800)	(94)
Proceeds from issuance of long-term debt	496)	—)	498)	—)	—)	—)
Tax withholdings on stock-based awards	(361)	(393)	(315)	(303)	(363)	(312)
Repurchases of common stock	(848)	(903)	(700)	(676)	(439)	(496)
Cash dividend payments	(2,458)	(2,183)	(9,041)	(1,251)	(1,498)	(5,748)
Financing lease payments and other financing activities, net	(91)	(147)	(137)	(291)	(180)	121)
Dividend to noncontrolling interest	—)	—)	—)	—)	(208)	—)
Acquisition of noncontrolling interest	—)	—)	—)	—)	(842)	—)
Net cash used in financing activities	(3,355)	(3,775)	(10,764)	(2,614)	(4,283)	(6,488)
Effect of exchange rate changes on cash and cash equivalents	(38)	6)	40)	15)	(249)	46)
Net change in cash and cash equivalents	6,046)	4,255)	(3,794)	3,497)	(1,055)	(1,019)
Cash and cash equivalents beginning of year	14,161)	9,906)	13,700)	10,203)	11,258)	12,277)
Cash and cash equivalents end of year	20,207)	14,161)	9,906)	13,700)	10,203)	11,258)

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 data reveals a consistent upward trajectory in profitability and operating cash generation over the analyzed period. Net income increased steadily from US$ 5,079 million in 2021 to US$ 9,226 million by 2026. This growth is mirrored in the net cash provided by operating activities, which grew from US$ 8,958 million in 2021 to US$ 15,817 million in 2026, indicating a strong capacity to convert earnings into liquid cash.

Operating Cash Flow Dynamics: A steady increase in depreciation and amortization is observed, rising from US$ 1,781 million in 2021 to US$ 2,674 million in 2026, reflecting an expanding asset base. Working capital management shows significant volatility, particularly in merchandise inventories and accounts payable. For instance, a substantial cash outflow for inventories occurred in 2022 (US$ 4,003 million), which was later offset by cash inflows in subsequent years, suggesting cyclical inventory adjustments.
Investing Activities and Capital Expenditure: There is a clear trend of aggressive reinvestment in infrastructure. Additions to property and equipment increased every year, growing from US$ 3,588 million in 2021 to US$ 6,435 million in 2026. The net cash used in investing activities followed a similar trend, expanding from US$ 3,535 million to US$ 6,378 million, confirming a sustained strategy of physical expansion and asset modernization.
Financing and Shareholder Returns: Shareholder distributions are characterized by significant volatility. Cash dividend payments remained relatively stable between 2022 and 2023 but spiked to US$ 9,041 million in 2024, suggesting the issuance of a special dividend. Repurchases of common stock have shown a gradual increase, rising from US$ 496 million in 2021 to US$ 848 million by 2026. Debt management appears conservative, with short-term borrowings and repayments largely offsetting each other.

Overall liquidity has strengthened significantly over the period. The cash and cash equivalents balance grew from US$ 11,258 million at the end of 2021 to US$ 20,207 million by the end of 2026. This accumulation of cash, despite substantial capital expenditures and dividend payouts, underscores a robust free cash flow position and high financial stability.

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