Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Costco Wholesale Corp., liquidity ratios
Based on: 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Costco Wholesale Corp. current ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Costco Wholesale Corp. quick ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Costco Wholesale Corp. cash ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Current Ratio
Costco Wholesale Corp., current ratio calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 35,879) | 32,696) | 29,505) | 28,120) | 23,485) | 20,289) | |
| Current liabilities | 33,583) | 31,998) | 29,441) | 24,844) | 23,237) | 19,926) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.07 | 1.02 | 1.00 | 1.13 | 1.01 | 1.02 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Target Corp. | 0.92 | 0.99 | 1.03 | 0.89 | 0.83 | — | |
| Walmart Inc. | 0.82 | 0.93 | 0.97 | 0.79 | 0.80 | — | |
| Current Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.89 | 0.96 | 0.99 | 0.88 | 0.85 | — | |
| Current Ratio, Industry | |||||||
| Consumer Staples | 0.84 | 0.89 | 0.92 | 0.90 | 0.79 | — | |
Based on: 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).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 35,879 ÷ 33,583 = 1.07
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Costco Wholesale Corp. current ratio improved from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
Costco Wholesale Corp., quick ratio calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 13,700) | 10,203) | 11,258) | 12,277) | 8,384) | 6,055) | |
| Short-term investments | 1,534) | 846) | 917) | 1,028) | 1,060) | 1,204) | |
| Receivables, net | 2,285) | 2,241) | 1,803) | 1,550) | 1,535) | 1,669) | |
| Total quick assets | 17,519) | 13,290) | 13,978) | 14,855) | 10,979) | 8,928) | |
| Current liabilities | 33,583) | 31,998) | 29,441) | 24,844) | 23,237) | 19,926) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.52 | 0.42 | 0.47 | 0.60 | 0.47 | 0.45 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Target Corp. | 0.20 | 0.33 | 0.48 | 0.24 | 0.18 | — | |
| Walmart Inc. | 0.18 | 0.26 | 0.26 | 0.20 | 0.18 | — | |
| Quick Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.26 | 0.31 | 0.34 | 0.29 | 0.24 | — | |
| Quick Ratio, Industry | |||||||
| Consumer Staples | 0.37 | 0.40 | 0.43 | 0.46 | 0.36 | — | |
Based on: 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).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 17,519 ÷ 33,583 = 0.52
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Costco Wholesale Corp. quick ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Cash Ratio
Costco Wholesale Corp., cash ratio calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 13,700) | 10,203) | 11,258) | 12,277) | 8,384) | 6,055) | |
| Short-term investments | 1,534) | 846) | 917) | 1,028) | 1,060) | 1,204) | |
| Total cash assets | 15,234) | 11,049) | 12,175) | 13,305) | 9,444) | 7,259) | |
| Current liabilities | 33,583) | 31,998) | 29,441) | 24,844) | 23,237) | 19,926) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.45 | 0.35 | 0.41 | 0.54 | 0.41 | 0.36 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Target Corp. | 0.11 | 0.27 | 0.42 | 0.18 | 0.10 | — | |
| Walmart Inc. | 0.09 | 0.17 | 0.19 | 0.12 | 0.10 | — | |
| Cash Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.18 | 0.22 | 0.27 | 0.22 | 0.16 | — | |
| Cash Ratio, Industry | |||||||
| Consumer Staples | 0.24 | 0.25 | 0.31 | 0.33 | 0.23 | — | |
Based on: 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).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 15,234 ÷ 33,583 = 0.45
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Costco Wholesale Corp. cash ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |