Operating Profit Margin
since 2005
Calculation
Costco Wholesale Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Aug 30, 2026 | 3.93% | = | 100 | × | 11,685) | ÷ | 297,247) |
| Aug 31, 2025 | 3.85% | = | 100 | × | 10,383) | ÷ | 269,912) |
| Sep 1, 2024 | 3.72% | = | 100 | × | 9,285) | ÷ | 249,625) |
| Sep 3, 2023 | 3.41% | = | 100 | × | 8,114) | ÷ | 237,710) |
| Aug 28, 2022 | 3.50% | = | 100 | × | 7,793) | ÷ | 222,730) |
| Aug 29, 2021 | 3.49% | = | 100 | × | 6,708) | ÷ | 192,052) |
| Aug 30, 2020 | 3.33% | = | 100 | × | 5,435) | ÷ | 163,220) |
| Sep 1, 2019 | 3.17% | = | 100 | × | 4,737) | ÷ | 149,351) |
| Sep 2, 2018 | 3.24% | = | 100 | × | 4,480) | ÷ | 138,434) |
| Sep 3, 2017 | 3.26% | = | 100 | × | 4,111) | ÷ | 126,172) |
| Aug 28, 2016 | 3.16% | = | 100 | × | 3,672) | ÷ | 116,073) |
| Aug 30, 2015 | 3.19% | = | 100 | × | 3,624) | ÷ | 113,666) |
| Aug 31, 2014 | 2.92% | = | 100 | × | 3,220) | ÷ | 110,212) |
| Sep 1, 2013 | 2.97% | = | 100 | × | 3,053) | ÷ | 102,870) |
| Sep 2, 2012 | 2.84% | = | 100 | × | 2,759) | ÷ | 97,062) |
| Aug 28, 2011 | 2.80% | = | 100 | × | 2,439) | ÷ | 87,048) |
| Aug 29, 2010 | 2.72% | = | 100 | × | 2,077) | ÷ | 76,255) |
| Aug 30, 2009 | 2.54% | = | 100 | × | 1,777) | ÷ | 69,889) |
| Aug 31, 2008 | 2.77% | = | 100 | × | 1,969) | ÷ | 70,977) |
| Sep 2, 2007 | 2.55% | = | 100 | × | 1,609) | ÷ | 63,088) |
| Sep 3, 2006 | 2.76% | = | 100 | × | 1,626) | ÷ | 58,963) |
| Aug 28, 2005 | 2.84% | = | 100 | × | 1,474) | ÷ | 51,862) |
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), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02), 10-K (reporting date: 2017-09-03), 10-K (reporting date: 2016-08-28), 10-K (reporting date: 2015-08-30), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-09-01), 10-K (reporting date: 2012-09-02), 10-K (reporting date: 2011-08-28), 10-K (reporting date: 2010-08-29), 10-K (reporting date: 2009-08-30), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-09-02), 10-K (reporting date: 2006-09-03), 10-K (reporting date: 2005-08-28).
1 US$ in millions
Over the period from 2005 to 2026, a consistent upward trajectory in both absolute financial figures and operational efficiency is observed. Net sales grew from 51,862 million USD in 2005 to a projected 297,247 million USD by 2026, while operating income increased from 1,474 million USD to 11,685 million USD during the same timeframe.
- Long-term Margin Expansion
- The operating profit margin exhibited a gradual but steady expansion over the analyzed period. Starting at 2.84% in 2005, the margin reached a projected 3.93% by 2026. This indicates a systematic improvement in the ability to convert net sales into operating profit, reflecting enhanced operational leverage and effective cost management as the organization scaled.
- Phase Analysis of Profitability
- The margin performance can be categorized into three distinct phases. From 2005 to 2010, margins were characterized by relative stagnation, fluctuating within a narrow range between 2.54% and 2.84%. A period of moderate growth followed between 2011 and 2020, during which the margin broke the 3% threshold and stabilized between 3.1% and 3.3%. The most pronounced acceleration occurred from 2021 onward, with margins rising from 3.49% to a projected 3.93%, suggesting a recent shift toward higher operational efficiency.
- Correlation Between Scale and Efficiency
- A positive correlation is evident between the increase in net sales and the expansion of the operating profit margin. The data suggests that growth in revenue has not resulted in diminishing returns; rather, the increase in the scale of operations has contributed to margin expansion. The fact that operating income grew at a faster rate than net sales confirms that the company achieved greater economies of scale over the two-decade period.
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Comparison to Competitors
Costco Wholesale Corp., operating profit margin, long-term trends, comparison to competitors
| Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|
| Aug 30, 2026 | 3.93% | 4.88% | 4.22% |
| Aug 31, 2025 | 3.85% | 5.22% | 4.35% |
| Sep 1, 2024 | 3.72% | 5.31% | 4.20% |
| Sep 3, 2023 | 3.41% | 3.53% | 3.37% |
| Aug 28, 2022 | 3.50% | 8.44% | 4.57% |
| Aug 29, 2021 | 3.49% | 6.99% | 4.06% |
| Aug 30, 2020 | 3.33% | 5.96% | 3.96% |
| Sep 1, 2019 | 3.17% | 5.45% | 4.30% |
| Sep 2, 2018 | 3.24% | 6.00% | 4.12% |
| Sep 3, 2017 | 3.26% | 7.15% | 4.73% |
| Aug 28, 2016 | 3.16% | 7.49% | 5.04% |
| Aug 30, 2015 | 3.19% | 6.25% | 5.63% |
| Aug 31, 2014 | 2.92% | 5.83% | 5.68% |
| Sep 1, 2013 | 2.97% | 7.33% | 5.96% |
| Sep 2, 2012 | 2.84% | 7.62% | 5.98% |
| Aug 28, 2011 | 2.80% | 7.79% | 6.10% |
| Aug 29, 2010 | 2.72% | 7.15% | 5.91% |
| Aug 30, 2009 | 2.54% | 6.78% | 5.68% |
| Aug 31, 2008 | 2.77% | 8.32% | 5.87% |
| Sep 2, 2007 | 2.55% | 8.52% | 5.94% |
| Sep 3, 2006 | 2.76% | 8.22% | 5.93% |
| Aug 28, 2005 | 2.84% | 7.69% | 5.99% |
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), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02), 10-K (reporting date: 2017-09-03), 10-K (reporting date: 2016-08-28), 10-K (reporting date: 2015-08-30), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-09-01), 10-K (reporting date: 2012-09-02), 10-K (reporting date: 2011-08-28), 10-K (reporting date: 2010-08-29), 10-K (reporting date: 2009-08-30), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-09-02), 10-K (reporting date: 2006-09-03), 10-K (reporting date: 2005-08-28).