.Liquidity Analysis
Difficulty: Beginner
Liquidity ratios measure the company's ability to meet its short-term obligations.
Ratios (Summary)
Costco Wholesale Corp., liquidity ratios
| Sep 3, 2017 | Aug 28, 2016 | Aug 30, 2015 | Aug 31, 2014 | Sep 1, 2013 | Sep 2, 2012 | ||
|---|---|---|---|---|---|---|---|
| | Current ratio | ||||||
| | Quick ratio | ||||||
| | Cash ratio |
Source: Based on data from Costco Wholesale Corp. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Costco Wholesale Corp.'s current ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Costco Wholesale Corp.'s quick ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Costco Wholesale Corp.'s cash ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Current Ratio
Costco Wholesale Corp., current ratio calculation, comparison to benchmarks
| Sep 3, 2017 | Aug 28, 2016 | Aug 30, 2015 | Aug 31, 2014 | Sep 1, 2013 | Sep 2, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Current assets | ||||||
| | Current liabilities | ||||||
| Ratio | |||||||
| | Current ratio1 | ||||||
| Benchmarks | |||||||
| Current Ratio, Competitors | |||||||
| Amazon.com Inc. | |||||||
| eBay Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe's Cos. Inc. | |||||||
| Netflix Inc. | |||||||
| Target Corp. | |||||||
| TJX Cos. Inc. | |||||||
| Walmart Inc. | |||||||
| Current Ratio, Sector | |||||||
| General Retailers | |||||||
| Current Ratio, Industry | |||||||
| Consumer Services | |||||||
Source: Based on data from Costco Wholesale Corp. Annual Reports
2017 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Costco Wholesale Corp.'s current ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Quick Ratio
Costco Wholesale Corp., quick ratio calculation, comparison to benchmarks
| Sep 3, 2017 | Aug 28, 2016 | Aug 30, 2015 | Aug 31, 2014 | Sep 1, 2013 | Sep 2, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Cash and cash equivalents | ||||||
| | Short-term investments | ||||||
| | Receivables, net | ||||||
| | Total quick assets | ||||||
| | Current liabilities | ||||||
| Ratio | |||||||
| | Quick ratio1 | ||||||
| Benchmarks | |||||||
| Quick Ratio, Competitors | |||||||
| Amazon.com Inc. | |||||||
| eBay Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe's Cos. Inc. | |||||||
| Netflix Inc. | |||||||
| Target Corp. | |||||||
| TJX Cos. Inc. | |||||||
| Walmart Inc. | |||||||
| Quick Ratio, Sector | |||||||
| General Retailers | |||||||
| Quick Ratio, Industry | |||||||
| Consumer Services | |||||||
Source: Based on data from Costco Wholesale Corp. Annual Reports
2017 Calculations
1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
| 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.'s quick ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Cash Ratio
Costco Wholesale Corp., cash ratio calculation, comparison to benchmarks
| Sep 3, 2017 | Aug 28, 2016 | Aug 30, 2015 | Aug 31, 2014 | Sep 1, 2013 | Sep 2, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | |||||||
| | Cash and cash equivalents | ||||||
| | Short-term investments | ||||||
| | Total cash assets | ||||||
| | Current liabilities | ||||||
| Ratio | |||||||
| | Cash ratio1 | ||||||
| Benchmarks | |||||||
| Cash Ratio, Competitors | |||||||
| Amazon.com Inc. | |||||||
| eBay Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe's Cos. Inc. | |||||||
| Netflix Inc. | |||||||
| Target Corp. | |||||||
| TJX Cos. Inc. | |||||||
| Walmart Inc. | |||||||
| Cash Ratio, Sector | |||||||
| General Retailers | |||||||
| Cash Ratio, Industry | |||||||
| Consumer Services | |||||||
Source: Based on data from Costco Wholesale Corp. Annual Reports
2017 Calculations
1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Costco Wholesale Corp.'s cash ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
