Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Costco Wholesale Corp., ROE, long-term trends, calculation

Microsoft Excel

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), 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


The financial data reveals consistent growth in net income attributable to the company over the examined periods. Starting from $1,063 million in 2005, net income experienced a steady increase with minor fluctuations, reaching $7,367 million by 2024. Notable accelerations in growth occurred particularly after 2017, with net income rising rapidly from $2,679 million to over $7,000 million in the latter years, indicating enhanced profitability and operational efficiency.

Total stockholders’ equity exhibited a more variable trend. Initial values remained relatively stable, rising modestly from $8,881 million in 2005 to a peak of $12,361 million in 2012. However, the equity then demonstrated some declines and recoveries, such as the drop from $12,361 million in 2012 to $10,833 million in 2013, and subsequent fluctuations through the years. From 2017 onward, equity showed a general upward trend, reaching a high of $25,058 million in 2023, before a slight decrease to $23,622 million by 2024. This pattern suggests periods of capital restructuring, share repurchases, or changes in retained earnings impacting the equity base.

Return on equity (ROE) has predominantly increased, indicating improving efficiency in generating profits from shareholders’ equity. The ratio grew from approximately 12% in the mid-2000s to over 30% in 2024, with some volatility in intermediate years. Spikes in ROE occurred around 2013-2015 and again from 2020 onwards, reflecting periods where net income growth outpaced changes in equity. The elevated ROE values in recent years highlight a strong capacity to convert equity into profits, potentially driven by operational leverage or strategic initiatives enhancing returns.

Overall, the data shows a company with a solid and growing profitability profile, managing equity with moderate variability yet maintaining strong returns for shareholders. The increasing net income alongside robust ROE values implies successful management of resources and effective capital utilization over the analyzed timeframe.


Comparison to Competitors


Comparison to Sector (Consumer Staples Distribution & Retail)

Costco Wholesale Corp., ROE, long-term trends, comparison to sector (consumer staples distribution & retail)

Microsoft Excel

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), 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).


Comparison to Industry (Consumer Staples)