Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Costco Wholesale Corp. (NASDAQ:COST)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Costco Wholesale Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
May 10, 2020 22.08% = 7.17% × 3.08
Feb 16, 2020 22.74% = 7.74% × 2.94
Nov 24, 2019 23.55% = 7.26% × 3.24
Sep 1, 2019 24.00% = 8.06% × 2.98
May 12, 2019 24.89% = 8.24% × 3.02
Feb 17, 2019 24.89% = 8.06% × 3.09
Nov 25, 2018 24.77% = 7.44% × 3.33
Sep 2, 2018 24.49% = 7.68% × 3.19
May 13, 2018 24.79% = 7.60% × 3.26
Feb 18, 2018 25.18% = 7.65% × 3.29
Nov 26, 2017 25.04% = 7.04% × 3.55
Sep 3, 2017 24.86% = 7.37% × 3.37
May 7, 2017 25.65% = 7.13% × 3.60
Feb 12, 2017 19.16% = 6.69% × 2.86
Nov 20, 2016 20.17% = 6.61% × 3.05
Aug 28, 2016 19.46% = 7.09% × 2.75
May 8, 2016 20.32% = 6.90% × 2.94
Feb 14, 2016 20.99% = 7.13% × 2.94
Nov 22, 2015 21.76% = 6.66% × 3.27
Aug 30, 2015 22.39% = 7.11% × 3.15
May 10, 2015 21.79% = 6.89% × 3.16
Feb 15, 2015 22.18% = 6.74% × 3.29
Nov 23, 2014 17.23% = 6.15% × 2.80
Aug 31, 2014 16.73% = 6.23% × 2.68
May 11, 2014 — = — × 2.77
Feb 16, 2014 — = — × 2.74
Nov 24, 2013 — = — × 2.88

Based on: 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Costco Wholesale Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
May 10, 2020 22.08% = 2.36% × 3.04 × 3.08
Feb 16, 2020 22.74% = 2.44% × 3.18 × 2.94
Nov 24, 2019 23.55% = 2.47% × 2.94 × 3.24
Sep 1, 2019 24.00% = 2.45% × 3.29 × 2.98
May 12, 2019 24.89% = 2.46% × 3.34 × 3.02
Feb 17, 2019 24.89% = 2.40% × 3.36 × 3.09
Nov 25, 2018 24.77% = 2.30% × 3.23 × 3.33
Sep 2, 2018 24.49% = 2.26% × 3.39 × 3.19
May 13, 2018 24.79% = 2.21% × 3.44 × 3.26
Feb 18, 2018 25.18% = 2.23% × 3.44 × 3.29
Nov 26, 2017 25.04% = 2.14% × 3.30 × 3.55
Sep 3, 2017 24.86% = 2.12% × 3.47 × 3.37
May 7, 2017 25.65% = 2.11% × 3.38 × 3.60
Feb 12, 2017 19.16% = 2.01% × 3.33 × 2.86
Nov 20, 2016 20.17% = 2.07% × 3.20 × 3.05
Aug 28, 2016 19.46% = 2.02% × 3.50 × 2.75
May 8, 2016 20.32% = 2.03% × 3.41 × 2.94
Feb 14, 2016 20.99% = 2.01% × 3.54 × 2.94
Nov 22, 2015 21.76% = 2.07% × 3.22 × 3.27
Aug 30, 2015 22.39% = 2.09% × 3.40 × 3.15
May 10, 2015 21.79% = 2.03% × 3.39 × 3.16
Feb 15, 2015 22.18% = 2.00% × 3.37 × 3.29
Nov 23, 2014 17.23% = 1.90% × 3.24 × 2.80
Aug 31, 2014 16.73% = 1.87% × 3.34 × 2.68
May 11, 2014 — = — × — × 2.77
Feb 16, 2014 — = — × — × 2.74
Nov 24, 2013 — = — × — × 2.88

Based on: 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Costco Wholesale Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
May 10, 2020 22.08% = 0.75 × 0.97 × 3.23% × 3.04 × 3.08
Feb 16, 2020 22.74% = 0.77 × 0.97 × 3.26% × 3.18 × 2.94
Nov 24, 2019 23.55% = 0.77 × 0.97 × 3.30% × 2.94 × 3.24
Sep 1, 2019 24.00% = 0.78 × 0.97 × 3.26% × 3.29 × 2.98
May 12, 2019 24.89% = 0.77 × 0.97 × 3.30% × 3.34 × 3.02
Feb 17, 2019 24.89% = 0.75 × 0.97 × 3.32% × 3.36 × 3.09
Nov 25, 2018 24.77% = 0.74 × 0.97 × 3.22% × 3.23 × 3.33
Sep 2, 2018 24.49% = 0.71 × 0.97 × 3.29% × 3.39 × 3.19
May 13, 2018 24.79% = 0.69 × 0.96 × 3.32% × 3.44 × 3.26
Feb 18, 2018 25.18% = 0.69 × 0.97 × 3.32% × 3.44 × 3.29
Nov 26, 2017 25.04% = 0.68 × 0.97 × 3.26% × 3.30 × 3.55
Sep 3, 2017 24.86% = 0.67 × 0.97 × 3.28% × 3.47 × 3.37
May 7, 2017 25.65% = 0.67 × 0.97 × 3.23% × 3.38 × 3.60
Feb 12, 2017 19.16% = 0.65 × 0.97 × 3.19% × 3.33 × 2.86
Nov 20, 2016 20.17% = 0.66 × 0.97 × 3.25% × 3.20 × 3.05
Aug 28, 2016 19.46% = 0.65 × 0.96 × 3.21% × 3.50 × 2.75
May 8, 2016 20.32% = 0.66 × 0.96 × 3.21% × 3.41 × 2.94
Feb 14, 2016 20.99% = 0.65 × 0.96 × 3.19% × 3.54 × 2.94
Nov 22, 2015 21.76% = 0.66 × 0.96 × 3.23% × 3.22 × 3.27
Aug 30, 2015 22.39% = 0.67 × 0.97 × 3.25% × 3.40 × 3.15
May 10, 2015 21.79% = 0.66 × 0.97 × 3.19% × 3.39 × 3.16
Feb 15, 2015 22.18% = 0.66 × 0.97 × 3.13% × 3.37 × 3.29
Nov 23, 2014 17.23% = 0.65 × 0.97 × 3.03% × 3.24 × 2.80
Aug 31, 2014 16.73% = 0.65 × 0.97 × 2.98% × 3.34 × 2.68
May 11, 2014 — = — × — × — × — × 2.77
Feb 16, 2014 — = — × — × — × — × 2.74
Nov 24, 2013 — = — × — × — × — × 2.88

Based on: 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2020 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Costco Wholesale Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
May 10, 2020 7.17% = 2.36% × 3.04
Feb 16, 2020 7.74% = 2.44% × 3.18
Nov 24, 2019 7.26% = 2.47% × 2.94
Sep 1, 2019 8.06% = 2.45% × 3.29
May 12, 2019 8.24% = 2.46% × 3.34
Feb 17, 2019 8.06% = 2.40% × 3.36
Nov 25, 2018 7.44% = 2.30% × 3.23
Sep 2, 2018 7.68% = 2.26% × 3.39
May 13, 2018 7.60% = 2.21% × 3.44
Feb 18, 2018 7.65% = 2.23% × 3.44
Nov 26, 2017 7.04% = 2.14% × 3.30
Sep 3, 2017 7.37% = 2.12% × 3.47
May 7, 2017 7.13% = 2.11% × 3.38
Feb 12, 2017 6.69% = 2.01% × 3.33
Nov 20, 2016 6.61% = 2.07% × 3.20
Aug 28, 2016 7.09% = 2.02% × 3.50
May 8, 2016 6.90% = 2.03% × 3.41
Feb 14, 2016 7.13% = 2.01% × 3.54
Nov 22, 2015 6.66% = 2.07% × 3.22
Aug 30, 2015 7.11% = 2.09% × 3.40
May 10, 2015 6.89% = 2.03% × 3.39
Feb 15, 2015 6.74% = 2.00% × 3.37
Nov 23, 2014 6.15% = 1.90% × 3.24
Aug 31, 2014 6.23% = 1.87% × 3.34
May 11, 2014 — = — × —
Feb 16, 2014 — = — × —
Nov 24, 2013 — = — × —

Based on: 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2020 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Costco Wholesale Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
May 10, 2020 7.17% = 0.75 × 0.97 × 3.23% × 3.04
Feb 16, 2020 7.74% = 0.77 × 0.97 × 3.26% × 3.18
Nov 24, 2019 7.26% = 0.77 × 0.97 × 3.30% × 2.94
Sep 1, 2019 8.06% = 0.78 × 0.97 × 3.26% × 3.29
May 12, 2019 8.24% = 0.77 × 0.97 × 3.30% × 3.34
Feb 17, 2019 8.06% = 0.75 × 0.97 × 3.32% × 3.36
Nov 25, 2018 7.44% = 0.74 × 0.97 × 3.22% × 3.23
Sep 2, 2018 7.68% = 0.71 × 0.97 × 3.29% × 3.39
May 13, 2018 7.60% = 0.69 × 0.96 × 3.32% × 3.44
Feb 18, 2018 7.65% = 0.69 × 0.97 × 3.32% × 3.44
Nov 26, 2017 7.04% = 0.68 × 0.97 × 3.26% × 3.30
Sep 3, 2017 7.37% = 0.67 × 0.97 × 3.28% × 3.47
May 7, 2017 7.13% = 0.67 × 0.97 × 3.23% × 3.38
Feb 12, 2017 6.69% = 0.65 × 0.97 × 3.19% × 3.33
Nov 20, 2016 6.61% = 0.66 × 0.97 × 3.25% × 3.20
Aug 28, 2016 7.09% = 0.65 × 0.96 × 3.21% × 3.50
May 8, 2016 6.90% = 0.66 × 0.96 × 3.21% × 3.41
Feb 14, 2016 7.13% = 0.65 × 0.96 × 3.19% × 3.54
Nov 22, 2015 6.66% = 0.66 × 0.96 × 3.23% × 3.22
Aug 30, 2015 7.11% = 0.67 × 0.97 × 3.25% × 3.40
May 10, 2015 6.89% = 0.66 × 0.97 × 3.19% × 3.39
Feb 15, 2015 6.74% = 0.66 × 0.97 × 3.13% × 3.37
Nov 23, 2014 6.15% = 0.65 × 0.97 × 3.03% × 3.24
Aug 31, 2014 6.23% = 0.65 × 0.97 × 2.98% × 3.34
May 11, 2014 — = — × — × — × —
Feb 16, 2014 — = — × — × — × —
Nov 24, 2013 — = — × — × — × —

Based on: 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2020 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Costco Wholesale Corp., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
May 10, 2020 2.36% = 0.75 × 0.97 × 3.23%
Feb 16, 2020 2.44% = 0.77 × 0.97 × 3.26%
Nov 24, 2019 2.47% = 0.77 × 0.97 × 3.30%
Sep 1, 2019 2.45% = 0.78 × 0.97 × 3.26%
May 12, 2019 2.46% = 0.77 × 0.97 × 3.30%
Feb 17, 2019 2.40% = 0.75 × 0.97 × 3.32%
Nov 25, 2018 2.30% = 0.74 × 0.97 × 3.22%
Sep 2, 2018 2.26% = 0.71 × 0.97 × 3.29%
May 13, 2018 2.21% = 0.69 × 0.96 × 3.32%
Feb 18, 2018 2.23% = 0.69 × 0.97 × 3.32%
Nov 26, 2017 2.14% = 0.68 × 0.97 × 3.26%
Sep 3, 2017 2.12% = 0.67 × 0.97 × 3.28%
May 7, 2017 2.11% = 0.67 × 0.97 × 3.23%
Feb 12, 2017 2.01% = 0.65 × 0.97 × 3.19%
Nov 20, 2016 2.07% = 0.66 × 0.97 × 3.25%
Aug 28, 2016 2.02% = 0.65 × 0.96 × 3.21%
May 8, 2016 2.03% = 0.66 × 0.96 × 3.21%
Feb 14, 2016 2.01% = 0.65 × 0.96 × 3.19%
Nov 22, 2015 2.07% = 0.66 × 0.96 × 3.23%
Aug 30, 2015 2.09% = 0.67 × 0.97 × 3.25%
May 10, 2015 2.03% = 0.66 × 0.97 × 3.19%
Feb 15, 2015 2.00% = 0.66 × 0.97 × 3.13%
Nov 23, 2014 1.90% = 0.65 × 0.97 × 3.03%
Aug 31, 2014 1.87% = 0.65 × 0.97 × 2.98%
May 11, 2014 — = — × — × —
Feb 16, 2014 — = — × — × —
Nov 24, 2013 — = — × — × —

Based on: 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

The primary reason for the decrease in net profit margin ratio over Q3 2020 is the decrease in effect of taxes measured by tax burden ratio.