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.

Costco Wholesale Corp., consolidated cash flow 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 income including noncontrolling interests	7,367)	6,292)	5,915)	5,079)	4,059)	3,704)
Depreciation and amortization	2,237)	2,077)	1,900)	1,781)	1,645)	1,492)
Non-cash lease expense	315)	412)	377)	286)	194)	—)
Stock-based compensation	818)	774)	724)	665)	619)	595)
Impairment of assets and other non-cash operating activities, net	(9)	495)	39)	144)	146)	156)
Merchandise inventories	(2,068)	1,228)	(4,003)	(1,892)	(791)	(536)
Accounts payable	1,938)	(382)	1,891)	1,838)	2,261)	322)
Other operating assets and liabilities, net	741)	172)	549)	1,057)	728)	623)
Changes in operating assets and liabilities	611)	1,018)	(1,563)	1,003)	2,198)	409)
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities	3,972)	4,776)	1,477)	3,879)	4,802)	2,652)
Net cash provided by operating activities	11,339)	11,068)	7,392)	8,958)	8,861)	6,356)
Purchases of short-term investments	(1,470)	(1,622)	(1,121)	(1,331)	(1,626)	(1,094)
Maturities and sales of short-term investments	1,790)	937)	1,145)	1,446)	1,678)	1,231)
Additions to property and equipment	(4,710)	(4,323)	(3,891)	(3,588)	(2,810)	(2,998)
Acquisitions	—)	—)	—)	—)	(1,163)	—)
Other investing activities, net	(19)	36)	(48)	(62)	30)	(4)
Net cash used in investing activities	(4,409)	(4,972)	(3,915)	(3,535)	(3,891)	(2,865)
Repayments of short-term borrowings	(920)	(935)	(6)	—)	—)	—)
Proceeds from short-term borrowings	928)	917)	53)	41)	—)	—)
Repayments of long-term debt	(1,077)	(75)	(800)	(94)	(3,200)	(89)
Proceeds from issuance of long-term debt	498)	—)	—)	—)	3,992)	298)
Tax withholdings on stock-based awards	(315)	(303)	(363)	(312)	(330)	(272)
Repurchases of common stock	(700)	(676)	(439)	(496)	(196)	(247)
Cash dividend payments	(9,041)	(1,251)	(1,498)	(5,748)	(1,479)	(1,038)
Financing lease payments and other financing activities, net	(137)	(291)	(176)	(67)	—)	—)
Dividend to noncontrolling interest	—)	—)	(208)	—)	—)	—)
Acquisition of noncontrolling interest	—)	—)	(842)	—)	—)	—)
Other financing activities, net	—)	—)	(4)	188)	66)	201)
Net cash used in financing activities	(10,764)	(2,614)	(4,283)	(6,488)	(1,147)	(1,147)
Effect of exchange rate changes on cash and cash equivalents	40)	15)	(249)	46)	70)	(15)
Net change in cash and cash equivalents	(3,794)	3,497)	(1,055)	(1,019)	3,893)	2,329)
Cash and cash equivalents beginning of year	13,700)	10,203)	11,258)	12,277)	8,384)	6,055)
Cash and cash equivalents end of year	9,906)	13,700)	10,203)	11,258)	12,277)	8,384)

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).

Net Income and Operating Cash Flow: Net income displayed a consistent upward trend over the periods, increasing from $3,704 million in 2019 to $7,367 million in 2024. This growth indicates improved profitability. Correspondingly, net cash provided by operating activities also rose overall, from $6,356 million in 2019 to $11,339 million in 2024, though some fluctuations occurred, notably a dip in 2022.
Non-Cash Operating Expenses: Depreciation and amortization steadily increased from $1,492 million in 2019 to $2,237 million in 2024, reflecting ongoing investment in fixed assets. Non-cash lease expenses appeared in 2020 and grew each year until 2023 before decreasing in 2024. Stock-based compensation showed a gradual rise each year. Impairment and other non-cash activities fluctuated, with a notable spike in 2023 followed by a reversal in 2024.
Working Capital Components: Merchandise inventories showed negative values in several years, indicating reductions or adjustments, but swung to positive in 2022 before decreasing again in 2024. Accounts payable increased sharply in 2020, declined in 2023, and recovered in 2024. Changes in other operating assets and liabilities fluctuated, leading to varying total changes in operating assets and liabilities across years.
Investing Activities: Capital expenditures (additions to property and equipment) consistently increased from $2,998 million in 2019 to $4,710 million in 2024, indicating sustained investment in physical assets. Purchases of short-term investments increased over time, with maturities and sales of these investments varying but generally significant. Net cash used in investing activities trended higher, peaking in 2023 and slightly decreasing in 2024. Acquisitions occurred only in 2020.
Financing Activities: Financing cash flows showed considerable volatility. Repayments and proceeds of short-term borrowings varied, with notable repayments in 2022 and 2023 and increases in proceeds in 2023 and 2024. Long-term debt repayments were inconsistent but increased sharply in 2024. Debt issuance was significant in 2020 and moderate thereafter. Common stock repurchases rose over time, peaking in 2023 and 2024. Dividend payments fluctuated, with a sharp increase in 2024. Overall, net cash used in financing activities surged notably in 2024.
Liquidity: Cash and cash equivalents increased from $8,384 million in 2019 to a peak of $13,700 million in 2023, before decreasing to $9,906 million in 2024. The net change in cash and equivalents reflected this variation, with positive inflows most years except declines in 2021 and 2022 and a significant decrease in 2024.
Other Observations: The effect of exchange rate changes on cash was minor but mostly positive in recent periods. Tax withholdings on stock-based awards remained relatively stable. Financing lease payments, although small, increased slightly before declining in 2024. Dividends paid to noncontrolling interests and acquisitions of noncontrolling interests appeared only in specific years.

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Costco Wholesale Corp. (NASDAQ:COST)

Cash Flow Statement