Stock Analysis on Net
Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

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

Microsoft Excel

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
ROE = ROA × Financial Leverage
Feb 18, 2024 32.73% = 10.24% × 3.19
Nov 26, 2023 24.92% = 8.84% × 2.82
Sep 3, 2023 25.11% = 9.12% × 2.75
May 7, 2023 25.46% = 8.99% × 2.83
Feb 12, 2023 26.55% = 9.05% × 2.93
Nov 20, 2022 27.40% = 8.91% × 3.08
Aug 28, 2022 28.31% = 9.11% × 3.11
May 8, 2022 28.28% = 8.84% × 3.20
Feb 13, 2022 28.39% = 8.74% × 3.25
Nov 21, 2021 27.97% = 8.05% × 3.47
Aug 29, 2021 28.51% = 8.45% × 3.37
May 9, 2021 28.67% = 8.25% × 3.47
Feb 14, 2021 27.75% = 7.91% × 3.51
Nov 22, 2020 29.10% = 7.18% × 4.05
Aug 30, 2020 21.89% = 7.20% × 3.04
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 — = — × 3.26
Feb 18, 2018 — = — × 3.29
Nov 26, 2017 — = — × 3.55

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2024 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

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

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Feb 18, 2024 32.73% = 2.78% × 3.68 × 3.19
Nov 26, 2023 24.92% = 2.70% × 3.27 × 2.82
Sep 3, 2023 25.11% = 2.65% × 3.45 × 2.75
May 7, 2023 25.46% = 2.60% × 3.46 × 2.83
Feb 12, 2023 26.55% = 2.63% × 3.44 × 2.93
Nov 20, 2022 27.40% = 2.59% × 3.43 × 3.08
Aug 28, 2022 28.31% = 2.62% × 3.47 × 3.11
May 8, 2022 28.28% = 2.65% × 3.34 × 3.20
Feb 13, 2022 28.39% = 2.67% × 3.27 × 3.25
Nov 21, 2021 27.97% = 2.59% × 3.10 × 3.47
Aug 29, 2021 28.51% = 2.61% × 3.24 × 3.37
May 9, 2021 28.67% = 2.58% × 3.19 × 3.47
Feb 14, 2021 27.75% = 2.48% × 3.19 × 3.51
Nov 22, 2020 29.10% = 2.55% × 2.81 × 4.05
Aug 30, 2020 21.89% = 2.45% × 2.94 × 3.04
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 — = — × — × 3.26
Feb 18, 2018 — = — × — × 3.29
Nov 26, 2017 — = — × — × 3.55

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2024 is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

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

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Feb 18, 2024 32.73% = 0.75 × 0.98 × 3.79% × 3.68 × 3.19
Nov 26, 2023 24.92% = 0.74 × 0.98 × 3.73% × 3.27 × 2.82
Sep 3, 2023 25.11% = 0.74 × 0.98 × 3.64% × 3.45 × 2.75
May 7, 2023 25.46% = 0.75 × 0.98 × 3.54% × 3.46 × 2.83
Feb 12, 2023 26.55% = 0.75 × 0.98 × 3.57% × 3.44 × 2.93
Nov 20, 2022 27.40% = 0.75 × 0.98 × 3.54% × 3.43 × 3.08
Aug 28, 2022 28.31% = 0.75 × 0.98 × 3.56% × 3.47 × 3.11
May 8, 2022 28.28% = 0.75 × 0.98 × 3.60% × 3.34 × 3.20
Feb 13, 2022 28.39% = 0.75 × 0.98 × 3.65% × 3.27 × 3.25
Nov 21, 2021 27.97% = 0.75 × 0.98 × 3.54% × 3.10 × 3.47
Aug 29, 2021 28.51% = 0.76 × 0.97 × 3.53% × 3.24 × 3.37
May 9, 2021 28.67% = 0.76 × 0.97 × 3.48% × 3.19 × 3.47
Feb 14, 2021 27.75% = 0.76 × 0.97 × 3.36% × 3.19 × 3.51
Nov 22, 2020 29.10% = 0.76 × 0.97 × 3.44% × 2.81 × 4.05
Aug 30, 2020 21.89% = 0.75 × 0.97 × 3.35% × 2.94 × 3.04
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 — = — × — × — × — × 3.26
Feb 18, 2018 — = — × — × — × — × 3.29
Nov 26, 2017 — = — × — × — × — × 3.55

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

The primary reason for the increase in return on equity ratio (ROE) over Q2 2024 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

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

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Feb 18, 2024 10.24% = 2.78% × 3.68
Nov 26, 2023 8.84% = 2.70% × 3.27
Sep 3, 2023 9.12% = 2.65% × 3.45
May 7, 2023 8.99% = 2.60% × 3.46
Feb 12, 2023 9.05% = 2.63% × 3.44
Nov 20, 2022 8.91% = 2.59% × 3.43
Aug 28, 2022 9.11% = 2.62% × 3.47
May 8, 2022 8.84% = 2.65% × 3.34
Feb 13, 2022 8.74% = 2.67% × 3.27
Nov 21, 2021 8.05% = 2.59% × 3.10
Aug 29, 2021 8.45% = 2.61% × 3.24
May 9, 2021 8.25% = 2.58% × 3.19
Feb 14, 2021 7.91% = 2.48% × 3.19
Nov 22, 2020 7.18% = 2.55% × 2.81
Aug 30, 2020 7.20% = 2.45% × 2.94
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 — = — × —
Feb 18, 2018 — = — × —
Nov 26, 2017 — = — × —

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2024 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

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

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Feb 18, 2024 10.24% = 0.75 × 0.98 × 3.79% × 3.68
Nov 26, 2023 8.84% = 0.74 × 0.98 × 3.73% × 3.27
Sep 3, 2023 9.12% = 0.74 × 0.98 × 3.64% × 3.45
May 7, 2023 8.99% = 0.75 × 0.98 × 3.54% × 3.46
Feb 12, 2023 9.05% = 0.75 × 0.98 × 3.57% × 3.44
Nov 20, 2022 8.91% = 0.75 × 0.98 × 3.54% × 3.43
Aug 28, 2022 9.11% = 0.75 × 0.98 × 3.56% × 3.47
May 8, 2022 8.84% = 0.75 × 0.98 × 3.60% × 3.34
Feb 13, 2022 8.74% = 0.75 × 0.98 × 3.65% × 3.27
Nov 21, 2021 8.05% = 0.75 × 0.98 × 3.54% × 3.10
Aug 29, 2021 8.45% = 0.76 × 0.97 × 3.53% × 3.24
May 9, 2021 8.25% = 0.76 × 0.97 × 3.48% × 3.19
Feb 14, 2021 7.91% = 0.76 × 0.97 × 3.36% × 3.19
Nov 22, 2020 7.18% = 0.76 × 0.97 × 3.44% × 2.81
Aug 30, 2020 7.20% = 0.75 × 0.97 × 3.35% × 2.94
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 — = — × — × — × —
Feb 18, 2018 — = — × — × — × —
Nov 26, 2017 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2024 is the increase 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
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Feb 18, 2024 2.78% = 0.75 × 0.98 × 3.79%
Nov 26, 2023 2.70% = 0.74 × 0.98 × 3.73%
Sep 3, 2023 2.65% = 0.74 × 0.98 × 3.64%
May 7, 2023 2.60% = 0.75 × 0.98 × 3.54%
Feb 12, 2023 2.63% = 0.75 × 0.98 × 3.57%
Nov 20, 2022 2.59% = 0.75 × 0.98 × 3.54%
Aug 28, 2022 2.62% = 0.75 × 0.98 × 3.56%
May 8, 2022 2.65% = 0.75 × 0.98 × 3.60%
Feb 13, 2022 2.67% = 0.75 × 0.98 × 3.65%
Nov 21, 2021 2.59% = 0.75 × 0.98 × 3.54%
Aug 29, 2021 2.61% = 0.76 × 0.97 × 3.53%
May 9, 2021 2.58% = 0.76 × 0.97 × 3.48%
Feb 14, 2021 2.48% = 0.76 × 0.97 × 3.36%
Nov 22, 2020 2.55% = 0.76 × 0.97 × 3.44%
Aug 30, 2020 2.45% = 0.75 × 0.97 × 3.35%
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 — = — × — × —
Feb 18, 2018 — = — × — × —
Nov 26, 2017 — = — × — × —

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

The primary reason for the increase in net profit margin ratio over Q2 2024 is the increase in operating profitability measured by EBIT margin ratio.