Costco Wholesale Corp. (NASDAQ:COST)

Net Sales

The net sales displayed a consistent upward trajectory over the examined period, increasing from approximately $51.9 billion to nearly $270 billion. This growth exhibited relative stability with minor fluctuations, such as a slight dip around 2009. The overall trend indicates strong revenue expansion, with the rate of increase accelerating notably from 2016 onward, reflecting robust top-line performance.

Operating Income

Operating income also showed consistent growth, rising from about $1.47 billion to over $10.3 billion. The increases were generally steady, mirroring the growth in net sales, though some years revealed less pronounced gains (e.g., periods around 2009 and early 2010s). From 2016 forward, operating income growth expedited, signifying improved operational efficiency or scale advantages.

Net Income Attributable to Company

Net income attributable to the company experienced a gradual increase from around $1.06 billion to more than $8 billion throughout the timeframe. While growth was generally steady, there were periods of slower increment or plateauing, particularly in the early 2010s. Post-2016, net income growth became more pronounced, indicating enhanced profitability and potentially better cost management or margin improvement strategies.

Overall Financial Trends

The financial data suggests a solid and sustained expansion in sales revenue accompanied by proportional increases in operating income and net income. The company demonstrated an ability to grow its operations profitably over two decades, with particular acceleration in profitability metrics after 2016. The data implies effective scaling of operations and improved profit margins in recent years.

Observations on Growth Rates & Profitability

While all key indicators increased significantly, operating income and net income grew at rates that suggest efficiency gains. The ratio of operating income and net income to net sales likely improved over time, reflecting improved operational leverage. Minor fluctuations early in the timeline may correspond to economic conditions or investments, but the overarching pattern is one of strengthening financial health and resilience.

Current Assets

The current assets have demonstrated a consistent upward trend over the observed period. Starting from 8,086 million US dollars in 2005, there was steady growth almost every year. Notable increases occurred between 2018 and 2020, where current assets rose from 20,289 million to 28,120 million US dollars, reflecting strong liquidity growth. After peaking at 35,879 million US dollars in 2024, there was a slight decline in 2025 to 34,246 million, followed by a recovery to 38,380 million US dollars in the subsequent year. Overall, this upward trajectory indicates the company's increasing ability to meet short-term obligations and possibly expanding operational scale.

Total Assets

Total assets have also shown a significant and consistent increase over the time frame analyzed. Beginning at 16,514 million US dollars in 2005, the total assets rose steadily with minor fluctuations. Especially marked is the acceleration in asset growth post-2014, climbing from 33,440 million to 55,556 million US dollars by 2020. This is indicative of substantial investment and expansion. The upward movement continued albeit at a moderated pace thereafter, reaching 77,099 million US dollars in 2025. This trend suggests enhanced resource availability and a growing asset base underpinning the company's operations and long-term strategy.

General Observations

Both current assets and total assets reflect a positive growth trend over the 20-year span, indicating sound asset management and expansion. The steady increase in current assets supports strong liquidity, while the significant growth in total assets points to broadening capital investment and operational capacity. Although slight year-to-year fluctuations are observable, the overall pattern is one of financial strengthening and asset accumulation.

The financial data reveals several notable trends in liabilities, debt, and stockholders’ equity over the displayed period.

Current Liabilities

There is a consistent upward trend in current liabilities from 2005 through 2025. Starting at $6.6 billion in 2005, current liabilities increased steadily to approximately $37.1 billion by 2025. This rise indicates growing short-term obligations, which may be due to expanded operations or increased payables.

Total Liabilities

Total liabilities also show a consistent increase over time, starting at approximately $7.6 billion in 2005 and reaching nearly $48.0 billion in 2025. This reflects an overall increase in the company’s financial obligations, with occasional fluctuations but a clear long-term upward trajectory.

Total Debt

Total debt exhibits more variability. Initially, debt was $768 million in 2005, but it dropped significantly in 2006 to $565 million, followed by a sharp rise peaking around 2013 at nearly $5.0 billion. After this peak, total debt declined gradually, reaching approximately $5.8 billion in 2025. This fluctuation suggests that the company has actively managed its debt levels, possibly borrowing more for growth phases and reducing debt subsequently.

Total Stockholders’ Equity

The equity position demonstrates overall growth with fluctuations. Beginning at around $8.9 billion in 2005, equity experienced some decline in the early 2010s but then rose substantially, reaching over $29.1 billion in 2025. This growth in equity despite fluctuations suggests improved net asset value and retained earnings accumulation over time.

Overall, the company’s increasing liabilities are matched by growing equity, implying scaling operations funded by a mix of debt and shareholder investment. The controlled management of total debt amid rising liabilities indicates purposeful financing strategies to balance growth and financial risk.

Operating Activities Cash Flow

The net cash provided by operating activities demonstrates a generally upward trend over the observed period. Starting from a level of 1,783 million US dollars, the cash inflow from operations grew steadily, with occasional fluctuations. Notably, there was a significant increase between 2016 and 2017, where it nearly doubled from 3,292 million to 6,726 million US dollars, followed by some volatility in subsequent years. Despite this, the operating cash flow remained strong, culminating in the highest values observed at the end of the period, reaching 13,335 million US dollars by August 31, 2025. This reflects an overall improvement in the company’s ability to generate cash from its core business operations.

Investing Activities Cash Flow

Net cash used in investing activities consistently shows negative values throughout the entire duration, indicating ongoing investment expenditures. The magnitude of cash outflows fluctuates but generally trends upward in absolute terms. Initial investing cash outflow was significant at -2,059 million US dollars and decreased to a low of -655 million US dollars in 2007 before rising again to higher levels by the latter years. From 2020 onward, there is an observed increase in investing cash outflows, peaking at -5,311 million US dollars by August 31, 2025. This rising trend points to intensified investment activities, potentially including capital expenditures or acquisitions.

Financing Activities Cash Flow

The net cash used in financing activities also displays a pattern marked by consistent negative cash flows, implying the company has been using cash to repay debt, repurchase shares, pay dividends, or manage other financing obligations. The values fluctuate significantly with some large outflows, especially in certain years like 2017 (-3,218 million US dollars), 2020 (-10,764 million US dollars), and 2025 (-3,775 million US dollars). There is a brief positive cash flow noted in 2012 (44 million US dollars), which may indicate temporary financing inflows. Overall, the trend shows the company has been actively managing its capital structure through considerable financing cash outflows.

The financial data reveals consistent growth in earnings per share (EPS) over the observed periods. Both basic and diluted EPS show a steady upward trend, indicating improving profitability. The basic EPS increased from $2.24 to $18.24, while the diluted EPS rose from $2.18 to $18.21. This progression suggests effective management of operations and expansion strategies contributing positively to the company's earnings.

The dividend per share also displays growth, albeit with notable irregularities in several years. Starting at $0.43, the dividend generally trends upward, reaching $4.92 in the latest period, but intermittent spikes, such as abnormally high values around specific years, suggest either typographical anomalies or extraordinary dividend distributions. These fluctuations indicate periods of exceptional dividend payouts possibly reflecting unusual profitability or special returns to shareholders, while the overall trend confirms a commitment to increasing shareholder returns over time.

Basic Earnings Per Share

Consistent upward trend from $2.24 to $18.24, demonstrating steady enhancement in net income attributable to shareholders.

Diluted Earnings Per Share

Mirrors the basic EPS trend closely, rising from $2.18 to $18.21, reinforcing the pattern of growing profitability without significant dilution impact.

Dividends Per Share

Overall increase from $0.43 to $4.92 with noticeable irregular spikes in some years, indicating both routine dividend growth and occasional extraordinary distributions.