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: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 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).
Liquidity metrics exhibit a cyclical pattern characterized by a period of gradual improvement, a sharp synchronized decline in early 2024, and a subsequent sustained recovery through August 2026. The high degree of correlation between the current, quick, and cash ratios suggests that fluctuations in liquidity are driven by systemic changes in working capital rather than isolated shifts in a single asset class.
- Current Ratio
- The current ratio maintained a stable trajectory between 1.02 and 1.09 from November 2021 through November 2023. A significant contraction occurred in February 2024, where the ratio fell to 0.93, marking the lowest point in the observed period and indicating a temporary state where current liabilities exceeded current assets. Following this dip, a consistent upward trend was observed, with the ratio returning to a healthy level of 1.06 by August 2026.
- Quick Ratio
- The quick ratio reflects a similar trend, oscillating between 0.42 and 0.55 during the initial two years. A sharp decrease to 0.38 was recorded in February 2024. From that point, the ratio demonstrated a steady recovery, eventually reaching its peak of 0.57 by August 2026. The persistent gap between the current ratio and the quick ratio indicates that a substantial portion of current assets remains tied up in inventory.
- Cash Ratio
- The cash ratio trend mirrors the other liquidity indicators, peaking at 0.49 in November 2023 before dropping precipitously to 0.30 in February 2024. A gradual recovery followed, with the ratio climbing back to 0.48 by August 2026. The close proximity of the cash ratio to the quick ratio suggests that cash and cash equivalents constitute the vast majority of the company's highly liquid assets, with minimal reliance on accounts receivable for immediate liquidity.
Overall, the data indicates a temporary liquidity squeeze in the first quarter of 2024, which was successfully mitigated over the following two years. The recovery across all three metrics suggests a strengthening of the short-term financial position and an improved capacity to meet immediate obligations.
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Current Ratio
Costco Wholesale Corp., current ratio calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 46,582) | 45,177) | 43,133) | 43,411) | 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) | ||||||
| Current liabilities | 43,952) | 42,125) | 40,763) | 41,805) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | 1.06 | 1.07 | 1.06 | 1.04 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 0.94 | 0.97 | 0.99 | 0.94 | 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 | ||||||
| Walmart Inc. | 0.79 | 0.80 | 0.79 | 0.78 | 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 | ||||||
Based on: 10-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 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).
1 Q4 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 46,582 ÷ 43,952 = 1.06
2 Click competitor name to see calculations.
The company's liquidity position, as measured by the current ratio, demonstrates a consistent pattern of stability, generally hovering near the 1.0 threshold. While both current assets and current liabilities exhibited overall growth over the analyzed period, the ratio remained tight, reflecting a lean approach to working capital management where short-term assets closely align with short-term obligations.
- Initial Stability and Growth Phase
- Between November 2021 and November 2023, the current ratio maintained a gradual upward trend, moving from 1.02 to a peak of 1.09. During this interval, the incremental growth of current assets slightly outpaced the increase in current liabilities, marginally improving the short-term solvency margin.
- Liquidity Contraction
- A notable decline in liquidity occurred in early 2024, with the current ratio dropping to 0.93 in February 2024. This represents the lowest point in the series, indicating a temporary period where current liabilities exceeded current assets, thereby reducing the immediate coverage of short-term debts.
- Recovery and Long-term Stabilization
- Following the dip in February 2024, a steady recovery is observed. The ratio returned to 1.00 by November 2024 and continued to climb, eventually stabilizing in the range of 1.06 to 1.07 through August 2026. This recovery suggests a restoration of the previous liquidity equilibrium and a sustained capacity to meet short-term obligations.
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Quick Ratio
Costco Wholesale Corp., quick ratio calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 20,207) | 18,946) | 17,383) | 16,217) | 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) | ||||||
| Short-term investments | 1,094) | 1,050) | 857) | 966) | 1,123) | 1,014) | 802) | 920) | 1,238) | 1,095) | 1,226) | 853) | 1,534) | 1,215) | 735) | 817) | 846) | 638) | 477) | 725) | ||||||
| Receivables, net | 3,959) | 3,750) | 3,782) | 3,231) | 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) | ||||||
| Total quick assets | 25,260) | 23,746) | 22,022) | 20,414) | 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) | ||||||
| Current liabilities | 43,952) | 42,125) | 40,763) | 41,805) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | 0.57 | 0.56 | 0.54 | 0.49 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 0.26 | 0.18 | 0.23 | 0.15 | 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 | ||||||
| Walmart Inc. | 0.20 | 0.20 | 0.19 | 0.18 | 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 | ||||||
Based on: 10-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 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).
1 Q4 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 25,260 ÷ 43,952 = 0.57
2 Click competitor name to see calculations.
The liquidity profile exhibits a cyclical pattern characterized by periods of gradual improvement followed by sharp adjustments. Throughout the observed timeframe, the quick ratio consistently remains below 1.00, reflecting a business model that prioritizes high inventory turnover over the maintenance of substantial immediate liquid assets.
- Liquidity Trend Analysis
- A period of relative stability was observed between November 2021 and November 2022, with the quick ratio fluctuating within a narrow range of 0.42 to 0.46. A strengthening phase followed, peaking at 0.55 in November 2023. This momentum was interrupted by a significant contraction in February 2024, where the ratio declined to a period low of 0.38, indicating a temporary tightening of immediate liquidity.
- Asset and Liability Correlation
- Total quick assets demonstrated an overall growth trajectory, rising from 15,408 million USD in November 2021 to 25,260 million USD by August 2026. Concurrently, current liabilities expanded from 33,342 million USD to 43,952 million USD. The fluctuations in the quick ratio are attributed to the variance in growth rates between these two metrics, most notably during the early 2024 dip when quick assets decreased significantly while liabilities remained elevated.
- Recent Performance Trajectory
- From May 2024 through August 2026, a consistent upward trend is evident. The quick ratio recovered from 0.40 to reach a peak of 0.57. This progression suggests an improving capacity to meet short-term obligations using liquid assets, driven by a sustained increase in quick assets that outpaced the growth of current liabilities in the final quarters of the period.
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Cash Ratio
Costco Wholesale Corp., cash ratio calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and cash equivalents | 20,207) | 18,946) | 17,383) | 16,217) | 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) | ||||||
| Short-term investments | 1,094) | 1,050) | 857) | 966) | 1,123) | 1,014) | 802) | 920) | 1,238) | 1,095) | 1,226) | 853) | 1,534) | 1,215) | 735) | 817) | 846) | 638) | 477) | 725) | ||||||
| Total cash assets | 21,301) | 19,996) | 18,240) | 17,183) | 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) | ||||||
| Current liabilities | 43,952) | 42,125) | 40,763) | 41,805) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | 0.48 | 0.47 | 0.45 | 0.41 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 0.26 | 0.18 | 0.23 | 0.15 | 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 | ||||||
| Walmart Inc. | 0.10 | 0.09 | 0.09 | 0.09 | 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 | ||||||
Based on: 10-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 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).
1 Q4 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 21,301 ÷ 43,952 = 0.48
2 Click competitor name to see calculations.
The analysis of the liquidity position from November 2021 to August 2026 reveals a fluctuating but generally resilient cash ratio. The ratio exhibits a pattern of periodic contraction followed by recovery, consistently maintaining a range between 0.30 and 0.49.
- Total Cash Assets
- Cash assets showed significant volatility, reaching a local peak of 17,864 million in November 2023 before experiencing a sharp decline to 10,321 million in February 2024. Following this trough, a sustained upward trajectory is observed, with cash assets increasing steadily to reach 21,301 million by August 2026.
- Current Liabilities
- Short-term obligations remained relatively stable between 31,000 million and 38,000 million through 2023. A gradual expansion in liabilities began in late 2023, with the total increasing to 43,952 million by August 2026, suggesting an increase in the company's short-term funding requirements or operational obligations.
- Cash Ratio Dynamics
- The cash ratio declined from 0.40 in November 2021 to 0.35 by August 2022, followed by a recovery phase that peaked at 0.49 in November 2023. A notable liquidity dip occurred in February 2024, where the ratio fell to 0.30. Since that point, a consistent recovery trend is evident, with the ratio climbing back to 0.48 by August 2026.
The overall trend indicates that while current liabilities have grown, the growth in total cash assets has outpaced them in the latter part of the analyzed period. This result has strengthened the immediate liquidity position, ensuring that a higher proportion of short-term debts can be covered by cash and cash equivalents.
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