Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Costco Wholesale Corp., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 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).
- Current Ratio
- The current ratio exhibited a general upward trend from late 2019 through early 2023, increasing from approximately 1.01 to a peak near 1.09, indicating a improving ability to cover short-term obligations with current assets. However, starting in early 2024, a gradual decline is observed, dipping below 1 at 0.93 in February 2024, and only moderately recovering to about 1.03 by late 2025. This pattern suggests a slight weakening in liquidity in the most recent periods, although the ratio remains close to an ideal benchmark of 1, signifying relatively stable short-term financial health.
- Quick Ratio
- The quick ratio followed a more fluctuating path, initially rising significantly from 0.45 in late 2019 to around 0.60 by mid-2020, likely reflecting an increase in liquid assets excluding inventories. Following this peak, the ratio declined somewhat and stabilized around the mid-0.40s to low 0.50s range through 2021 and early 2023. A noticeable drop occurred again starting in early 2024, falling below 0.40 at one point, indicating reduced liquidity in terms of assets readily convertible to cash, though a modest recovery to 0.50 occurred by late 2025. Overall, the quick ratio suggests variability in liquid asset management, with periods of both strengthening and weakening liquidity.
- Cash Ratio
- The cash ratio demonstrated an initial strong increase from 0.38 in late 2019 to a peak above 0.54 by mid-2020, reflecting a significant build-up of cash and cash equivalents relative to current liabilities. Following that, the ratio experienced a general decline through 2021 and into early 2023, dropping to the mid-0.30s level. It then showed a recovery trajectory into late 2023, peaking near 0.49 before falling again in 2024 to around 0.30–0.31. By late 2025, there was a partial rebound to approximately 0.41. These fluctuations indicate variable cash management and changing levels of immediate liquidity over the observed periods.
Current Ratio
Costco Wholesale Corp., current ratio calculation (quarterly data)
| Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Current assets | 38,380) | 38,151) | 36,897) | 37,523) | 34,246) | 33,288) | 32,146) | 40,080) | 35,879) | 34,289) | 34,330) | 34,150) | 32,696) | 33,008) | 32,565) | 33,850) | 29,505) | 27,916) | 26,308) | 32,096) | 28,120) | 25,254) | 23,703) | 26,643) | |||||||
| Current liabilities | 37,108) | 37,579) | 36,999) | 38,289) | 35,464) | 35,361) | 34,688) | 36,768) | 33,583) | 31,708) | 32,516) | 33,067) | 31,998) | 31,845) | 31,545) | 33,342) | 29,441) | 27,982) | 26,564) | 32,667) | 24,844) | 22,779) | 22,695) | 26,265) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Current ratio1 | 1.03 | 1.02 | 1.00 | 0.98 | 0.97 | 0.94 | 0.93 | 1.09 | 1.07 | 1.08 | 1.06 | 1.03 | 1.02 | 1.04 | 1.03 | 1.02 | 1.00 | 1.00 | 0.99 | 0.98 | 1.13 | 1.11 | 1.04 | 1.01 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Target Corp. | 0.94 | 0.94 | 0.90 | 0.86 | 0.91 | 0.86 | 0.83 | 0.88 | 0.92 | 0.86 | 0.82 | 0.87 | 0.99 | 0.97 | 1.04 | 1.07 | 1.03 | 1.05 | 1.11 | 1.01 | 0.89 | 0.83 | 0.84 | 0.88 | |||||||
| Walmart Inc. | 0.82 | 0.85 | 0.80 | 0.80 | 0.83 | 0.85 | 0.83 | 0.82 | 0.82 | 0.86 | 0.84 | 0.86 | 0.93 | 0.95 | 0.96 | 0.95 | 0.97 | 0.84 | 0.79 | 0.77 | 0.79 | 0.81 | 0.76 | 0.77 | |||||||
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 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).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 38,380 ÷ 37,108 = 1.03
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the company's liquidity position over the observed periods.
- Current Assets
- Current assets exhibit a general upward trend from November 2019 through early 2025, with some fluctuations. Initially, there was a decrease from 26,643 million USD in November 2019 to 23,703 million USD in February 2020, followed by a consistent increase peaking at 40,080 million USD in November 2023. This peak is succeeded by a decline through early 2024, dipping to 32,146 million USD in February 2024, before gradually rising again to approximately 38,380 million USD by August 2025. The data indicate periodic fluctuations but an overall growth trajectory in current assets, suggesting an expansion in resources available for short-term obligations.
- Current Liabilities
- Current liabilities similarly increased over the period but with more pronounced volatility. Starting from 26,265 million USD in November 2019, there was a general rise to the highest level of 38,289 million USD by November 2024. Intermediate values show periods of both rapid increase and slight decreases, including a notable jump from 24,844 million USD in August 2020 to 32,667 million USD in November 2020. Following the peak, current liabilities slightly decreased overall but remained elevated relative to earlier years, showing that short-term obligations grew in line with or faster than current assets at several points.
- Current Ratio
- The current ratio ranged mostly near or slightly above 1.0, indicating that current assets and current liabilities were closely matched throughout the period. Initially, the ratio increased from 1.01 in November 2019 to a high of 1.13 by August 2020, denoting improving liquidity relative to short-term debt. However, this was followed by a decline to below 1.0 (around 0.93 to 0.94) in early 2024, suggesting tighter liquidity conditions. Subsequently, the ratio recovered modestly to just above 1.0 by mid-2025. The fluctuations around the unit threshold imply that liquidity was generally adequate but occasionally pressured, with periods where the buffer of current assets over current liabilities narrowed.
Overall, the data indicate that both current assets and liabilities grew significantly over the examined periods, reflecting possible scaling operations or changes in working capital management. The current ratio's movement around the critical 1.0 mark suggests the company's liquidity was managed to maintain balance between available short-term resources and obligations, despite experiencing phases of tighter liquidity. Monitoring these trends will be important for assessing ongoing financial flexibility.
Quick Ratio
Costco Wholesale Corp., quick ratio calculation (quarterly data)
| Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 14,161) | 13,836) | 12,356) | 10,907) | 9,906) | 10,404) | 9,095) | 17,011) | 13,700) | 12,493) | 12,970) | 10,856) | 10,203) | 11,193) | 11,819) | 12,751) | 11,258) | 10,226) | 8,637) | 13,590) | 12,277) | 10,826) | 7,786) | 9,027) | |||||||
| Short-term investments | 1,123) | 1,014) | 802) | 920) | 1,238) | 1,095) | 1,226) | 853) | 1,534) | 1,215) | 735) | 817) | 846) | 638) | 477) | 725) | 917) | 900) | 617) | 833) | 1,028) | 948) | 929) | 993) | |||||||
| Receivables, net | 3,203) | 2,875) | 3,060) | 2,963) | 2,721) | 2,583) | 2,779) | 2,542) | 2,285) | 2,502) | 2,714) | 2,312) | 2,241) | 1,991) | 2,232) | 1,932) | 1,803) | 1,595) | 1,934) | 1,646) | 1,550) | 1,507) | 1,988) | 1,711) | |||||||
| Total quick assets | 18,487) | 17,725) | 16,218) | 14,790) | 13,865) | 14,082) | 13,100) | 20,406) | 17,519) | 16,210) | 16,419) | 13,985) | 13,290) | 13,822) | 14,528) | 15,408) | 13,978) | 12,721) | 11,188) | 16,069) | 14,855) | 13,281) | 10,703) | 11,731) | |||||||
| Current liabilities | 37,108) | 37,579) | 36,999) | 38,289) | 35,464) | 35,361) | 34,688) | 36,768) | 33,583) | 31,708) | 32,516) | 33,067) | 31,998) | 31,845) | 31,545) | 33,342) | 29,441) | 27,982) | 26,564) | 32,667) | 24,844) | 22,779) | 22,695) | 26,265) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Quick ratio1 | 0.50 | 0.47 | 0.44 | 0.39 | 0.39 | 0.40 | 0.38 | 0.55 | 0.52 | 0.51 | 0.50 | 0.42 | 0.42 | 0.43 | 0.46 | 0.46 | 0.47 | 0.45 | 0.42 | 0.49 | 0.60 | 0.58 | 0.47 | 0.45 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Target Corp. | 0.23 | 0.16 | 0.17 | 0.18 | 0.20 | 0.09 | 0.08 | 0.07 | 0.11 | 0.04 | 0.05 | 0.05 | 0.27 | 0.25 | 0.38 | 0.42 | 0.42 | 0.31 | 0.46 | 0.32 | 0.18 | 0.06 | 0.12 | 0.09 | |||||||
| Walmart Inc. | 0.20 | 0.20 | 0.18 | 0.19 | 0.20 | 0.20 | 0.22 | 0.19 | 0.18 | 0.20 | 0.21 | 0.20 | 0.26 | 0.27 | 0.36 | 0.35 | 0.26 | 0.23 | 0.27 | 0.24 | 0.20 | 0.17 | 0.18 | 0.18 | |||||||
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 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).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 18,487 ÷ 37,108 = 0.50
2 Click competitor name to see calculations.
The financial analysis of the quarterly data reveals several notable trends in liquidity and current liabilities over the observed periods.
- Total Quick Assets
- The total quick assets exhibit a generally fluctuating trend with periods of increase and decrease. Starting at 11,731 million USD, quick assets rose to a peak of 20,406 million USD by August 2023. However, from February 2024 onwards, a decline is noticeable, with values dropping closer to the 13,000–18,000 million USD range. This pattern indicates intermittent accumulation of liquid assets, followed by drawdowns or slower growth in recent quarters.
- Current Liabilities
- Current liabilities have increased overall during the timeframe. From an initial value of 26,265 million USD in November 2019, liabilities showed gradual growth punctuated by occasional plateaus. A peak is observed around August 2023 at approximately 36,768 million USD. Subsequently, the liabilities remain elevated in the range of 37,000 million USD, indicating greater short-term obligations which may impact liquidity management.
- Quick Ratio
- The quick ratio, a key indicator of liquidity, generally fluctuates around the 0.4 to 0.6 mark. Starting at 0.45, it improved somewhat to nearly 0.6 by August 2020 but then slipped back to a lower range closer to 0.42 during late 2021 and early 2022. An increase to 0.55 was observed by August 2023, signifying improved liquidity during this period. Conversely, a decline occurs from February 2024, with the ratio dipping to around 0.39 before a minor recovery to 0.5 by August 2025, reflecting a somewhat unstable liquidity position relative to short-term liabilities.
Overall, the company’s liquidity exhibits periodic strengthening and weakening phases. While quick assets periodically increase, the simultaneous growth in current liabilities leads to a generally modest quick ratio, suggesting cautious monitoring of liquid resources is necessary. The fluctuations in quick ratio indicate that despite increased assets, the rise in short-term obligations places pressure on immediate liquidity, requiring vigilant balance sheet management to maintain financial flexibility.
Cash Ratio
Costco Wholesale Corp., cash ratio calculation (quarterly data)
| Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||
| Cash and cash equivalents | 14,161) | 13,836) | 12,356) | 10,907) | 9,906) | 10,404) | 9,095) | 17,011) | 13,700) | 12,493) | 12,970) | 10,856) | 10,203) | 11,193) | 11,819) | 12,751) | 11,258) | 10,226) | 8,637) | 13,590) | 12,277) | 10,826) | 7,786) | 9,027) | |||||||
| Short-term investments | 1,123) | 1,014) | 802) | 920) | 1,238) | 1,095) | 1,226) | 853) | 1,534) | 1,215) | 735) | 817) | 846) | 638) | 477) | 725) | 917) | 900) | 617) | 833) | 1,028) | 948) | 929) | 993) | |||||||
| Total cash assets | 15,284) | 14,850) | 13,158) | 11,827) | 11,144) | 11,499) | 10,321) | 17,864) | 15,234) | 13,708) | 13,705) | 11,673) | 11,049) | 11,831) | 12,296) | 13,476) | 12,175) | 11,126) | 9,254) | 14,423) | 13,305) | 11,774) | 8,715) | 10,020) | |||||||
| Current liabilities | 37,108) | 37,579) | 36,999) | 38,289) | 35,464) | 35,361) | 34,688) | 36,768) | 33,583) | 31,708) | 32,516) | 33,067) | 31,998) | 31,845) | 31,545) | 33,342) | 29,441) | 27,982) | 26,564) | 32,667) | 24,844) | 22,779) | 22,695) | 26,265) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||
| Cash ratio1 | 0.41 | 0.40 | 0.36 | 0.31 | 0.31 | 0.33 | 0.30 | 0.49 | 0.45 | 0.43 | 0.42 | 0.35 | 0.35 | 0.37 | 0.39 | 0.40 | 0.41 | 0.40 | 0.35 | 0.44 | 0.54 | 0.52 | 0.38 | 0.38 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||
| Target Corp. | 0.23 | 0.16 | 0.17 | 0.18 | 0.20 | 0.09 | 0.08 | 0.07 | 0.11 | 0.04 | 0.05 | 0.05 | 0.27 | 0.25 | 0.38 | 0.42 | 0.42 | 0.31 | 0.46 | 0.32 | 0.18 | 0.06 | 0.12 | 0.09 | |||||||
| Walmart Inc. | 0.09 | 0.10 | 0.09 | 0.10 | 0.11 | 0.12 | 0.14 | 0.11 | 0.09 | 0.11 | 0.14 | 0.12 | 0.17 | 0.18 | 0.28 | 0.28 | 0.19 | 0.16 | 0.21 | 0.18 | 0.12 | 0.10 | 0.12 | 0.12 | |||||||
Based on: 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 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).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 15,284 ÷ 37,108 = 0.41
2 Click competitor name to see calculations.
The financial data exhibits notable fluctuations in total cash assets, current liabilities, and the cash ratio across the observed periods. Several key trends emerge from the analysis.
- Total Cash Assets
- Total cash assets demonstrate variability with a general upward trajectory from late 2019 through mid-2023. Initial values near $10 billion rose consistently, peaking above $17 billion by September 2023. This suggests periods of increased liquidity or cash inflow during this time frame. However, from late 2023 onward, there is a visible decline to around $10.3 billion by February 2024, followed by a recovery trend reaching approximately $15.3 billion by August 2025, indicating cyclical liquidity management or cash flow fluctuations in the most recent quarters.
- Current Liabilities
- Current liabilities show a generally increasing trend throughout the entire timeline, rising from about $26.3 billion in November 2019 to a level fluctuating around $37 billion in the most recent periods of 2024 and 2025. Despite some quarter-to-quarter variations, the persistent increase reflects potential growth in operational scale or increased short-term obligations, which may impact working capital requirements.
- Cash Ratio
- The cash ratio, representing cash assets relative to current liabilities, starts at a moderate level around 0.38 in late 2019, peaks near 0.54 by August 2020, and then gradually declines with fluctuations over the succeeding quarters. It reaches a low near 0.30 in the early months of 2024, followed by a mild recovery settling around 0.40 by late 2025. This pattern indicates that, although cash assets increased at times, current liabilities rose at a rate that often outpaced cash availability, pointing to tightened liquidity coverage in certain periods.
Overall, the data reflects a company managing growing short-term liabilities alongside fluctuating cash resources. The varying cash ratio underscores a cautious liquidity position, with efforts likely concentrated on balancing cash holdings against operational demands and obligations. The increase in total cash assets until mid-2023, followed by short-term declines and recovery, suggests adaptive cash management in response to changing operational and market conditions.