Costco Wholesale Corp. (NASDAQ:COST)

The annual financial data reveals several significant trends in share price, operating profit per share, and the price-to-operating profit ratio (P/OP) over the observed period.

Share Price

The share price demonstrates a general upward trajectory from 50.06 US dollars in 2005 to 909.1 US dollars in 2024. There are intermittent periods of slower growth or slight declines, such as in 2008 when the share price decreased to 57.79 US dollars from 64.82 US dollars the previous year. However, these are relatively short-lived, with sustained and substantial growth observed especially from 2017 onwards, culminating in a sharp increase in 2024.

Operating Profit per Share

Operating profit per share consistently increases throughout the time span, rising from 3.12 US dollars in 2005 to 20.96 US dollars in 2024. This steady growth indicates continual improvements in profitability on a per-share basis. The most pronounced increases occur in the recent years, particularly from 2018 forward, which suggests enhanced operational efficiency or scale benefits over time.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio shows more variability compared to the other two indicators. It starts at 16.03 in 2005, declines to a low around 12.67 in 2008, and generally fluctuates upward after 2014, reaching a peak of 43.38 in 2024. This increasing P/OP ratio suggests that the market price is growing at a faster rate than operating profits in recent years, possibly reflecting higher market expectations for future growth or increased investor optimism.

In summary, the company exhibits strong and sustained increases in both share price and operating profit per share over the nearly two-decade period. The rising P/OP ratio especially in the latest years implies an elevated valuation relative to operational earnings, which may warrant further investigation regarding market expectations and underlying business conditions.