Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Costco Wholesale Corp. (NASDAQ:COST)

Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

Costco Wholesale Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014
Debt Ratios
Debt to equity 0.45 0.51 0.62 0.43 0.58 0.41
Debt to capital 0.31 0.34 0.38 0.30 0.37 0.29
Debt to assets 0.15 0.16 0.18 0.16 0.18 0.15
Financial leverage 2.98 3.19 3.37 2.75 3.15 2.68
Coverage Ratios
Interest coverage 32.77 28.94 31.14 28.21 30.06 29.29
Fixed charge coverage 12.40 11.48 11.30 10.45 10.59 10.32

Based on: 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Costco Wholesale Corp.’s debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Costco Wholesale Corp.’s debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Costco Wholesale Corp.’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Costco Wholesale Corp.’s financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Costco Wholesale Corp.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Costco Wholesale Corp.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Equity

Costco Wholesale Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,699  90  86  1,100  1,283  — 
Long-term debt, excluding current portion 5,124  6,487  6,573  4,061  4,864  5,093 
Total debt 6,823  6,577  6,659  5,161  6,147  5,093 
 
Total Costco stockholders’ equity 15,243  12,799  10,778  12,079  10,617  12,303 
Solvency Ratio
Debt to equity1 0.45 0.51 0.62 0.43 0.58 0.41
Benchmarks
Debt to Equity, Competitors2
Amazon.com Inc. 0.83 0.97 1.41 0.92 1.17
Dollar General Corp. 0.45 0.49 0.59 0.55 0.48
Home Depot Inc. 18.59 5.45 3.37 1.84
Lowe’s Cos. Inc. 4.45 2.89 2.44 1.65 1.14
Target Corp. 1.00 0.99 1.16 0.98 0.91
TJX Cos. Inc. 0.44 0.43 0.49 0.38 0.38
Walmart Inc. 0.80 0.60 0.59 0.62 0.62
Debt to Equity, Sector
General Retailers 1.02 0.95 1.01 0.84 0.79
Debt to Equity, Industry
Consumer Services 1.24 1.27 1.10 0.99 0.93

Based on: 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Costco stockholders’ equity
= 6,823 ÷ 15,243 = 0.45

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Costco Wholesale Corp.’s debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Capital

Costco Wholesale Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,699  90  86  1,100  1,283  — 
Long-term debt, excluding current portion 5,124  6,487  6,573  4,061  4,864  5,093 
Total debt 6,823  6,577  6,659  5,161  6,147  5,093 
Total Costco stockholders’ equity 15,243  12,799  10,778  12,079  10,617  12,303 
Total capital 22,066  19,376  17,437  17,240  16,764  17,396 
Solvency Ratio
Debt to capital1 0.31 0.34 0.38 0.30 0.37 0.29
Benchmarks
Debt to Capital, Competitors2
Amazon.com Inc. 0.45 0.49 0.59 0.48 0.54
Dollar General Corp. 0.31 0.33 0.37 0.36 0.32
Home Depot Inc. 1.07 0.95 0.84 0.77 0.65
Lowe’s Cos. Inc. 0.82 0.74 0.71 0.62 0.53
Target Corp. 0.50 0.50 0.54 0.50 0.48
TJX Cos. Inc. 0.31 0.30 0.33 0.27 0.28
Walmart Inc. 0.44 0.37 0.37 0.38 0.38
Debt to Capital, Sector
General Retailers 0.51 0.49 0.50 0.46 0.44
Debt to Capital, Industry
Consumer Services 0.55 0.56 0.52 0.50 0.48

Based on: 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,823 ÷ 22,066 = 0.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Costco Wholesale Corp.’s debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019.

Debt to Assets

Costco Wholesale Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Current portion of long-term debt 1,699  90  86  1,100  1,283  — 
Long-term debt, excluding current portion 5,124  6,487  6,573  4,061  4,864  5,093 
Total debt 6,823  6,577  6,659  5,161  6,147  5,093 
 
Total assets 45,400  40,830  36,347  33,163  33,440  33,024 
Solvency Ratio
Debt to assets1 0.15 0.16 0.18 0.16 0.18 0.15
Benchmarks
Debt to Assets, Competitors2
Amazon.com Inc. 0.23 0.26 0.30 0.21 0.24
Dollar General Corp. 0.22 0.24 0.28 0.26 0.24
Home Depot Inc. 0.66 0.61 0.55 0.50 0.43
Lowe’s Cos. Inc. 0.47 0.48 0.46 0.40 0.36
Target Corp. 0.27 0.30 0.34 0.32 0.31
TJX Cos. Inc. 0.16 0.16 0.17 0.14 0.15
Walmart Inc. 0.26 0.23 0.23 0.25 0.25
Debt to Assets, Sector
General Retailers 0.28 0.28 0.29 0.27 0.27
Debt to Assets, Industry
Consumer Services 0.34 0.37 0.34 0.32 0.32

Based on: 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,823 ÷ 45,400 = 0.15

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Costco Wholesale Corp.’s debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019.

Financial Leverage

Costco Wholesale Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Total assets 45,400  40,830  36,347  33,163  33,440  33,024 
Total Costco stockholders’ equity 15,243  12,799  10,778  12,079  10,617  12,303 
Solvency Ratio
Financial leverage1 2.98 3.19 3.37 2.75 3.15 2.68
Benchmarks
Financial Leverage, Competitors2
Amazon.com Inc. 3.63 3.73 4.74 4.32 4.89
Dollar General Corp. 2.06 2.04 2.16 2.09 1.97
Home Depot Inc. 30.63 9.92 6.74 4.29
Lowe’s Cos. Inc. 9.47 6.01 5.35 4.08 3.19
Target Corp. 3.65 3.33 3.42 3.11 2.96
TJX Cos. Inc. 2.84 2.73 2.86 2.67 2.61
Walmart Inc. 3.02 2.63 2.56 2.48 2.50
Financial Leverage, Sector
General Retailers 3.66 3.36 3.42 3.05 2.95
Financial Leverage, Industry
Consumer Services 3.61 3.48 3.19 3.09 2.95

Based on: 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Costco stockholders’ equity
= 45,400 ÷ 15,243 = 2.98

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Costco Wholesale Corp.’s financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Interest Coverage

Costco Wholesale Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Net income attributable to Costco 3,659  3,134  2,679  2,350  2,377  2,058 
Add: Net income attributable to noncontrolling interest 45  45  35  26  32  30 
Add: Income tax expense 1,061  1,263  1,325  1,243  1,195  1,109 
Add: Interest expense 150  159  134  133  124  113 
Earnings before interest and tax (EBIT) 4,915  4,601  4,173  3,752  3,728  3,310 
Solvency Ratio
Interest coverage1 32.77 28.94 31.14 28.21 30.06 29.29
Benchmarks
Interest Coverage, Competitors2
Amazon.com Inc. 9.73 8.95 5.48 8.84 4.37
Dollar General Corp. 21.18 20.66 21.09 22.31 20.05
Home Depot Inc. 14.85 13.96 13.85 12.99 13.02
Lowe’s Cos. Inc. 6.21 9.46 8.92 8.95 9.19
Target Corp. 8.97 6.47 4.95 9.11 5.14
TJX Cos. Inc. 65.36 60.98 61.37 61.70 65.10
Walmart Inc. 5.88 7.49 9.66 9.49 11.08
Interest Coverage, Sector
General Retailers 10.03 10.23 10.07 11.18 10.79
Interest Coverage, Industry
Consumer Services 6.64 7.01 8.27 8.92 9.86

Based on: 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,915 ÷ 150 = 32.77

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Costco Wholesale Corp.’s interest coverage ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Fixed Charge Coverage

Costco Wholesale Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Net income attributable to Costco 3,659  3,134  2,679  2,350  2,377  2,058 
Add: Net income attributable to noncontrolling interest 45  45  35  26  32  30 
Add: Income tax expense 1,061  1,263  1,325  1,243  1,195  1,109 
Add: Interest expense 150  159  134  133  124  113 
Earnings before interest and tax (EBIT) 4,915  4,601  4,173  3,752  3,728  3,310 
Add: Aggregate rental expense 268  265  258  250  252  230 
Earnings before fixed charges and tax 5,183  4,866  4,431  4,002  3,980  3,540 
 
Interest expense 150  159  134  133  124  113 
Aggregate rental expense 268  265  258  250  252  230 
Fixed charges 418  424  392  383  376  343 
Solvency Ratio
Fixed charge coverage1 12.40 11.48 11.30 10.45 10.59 10.32
Benchmarks
Fixed Charge Coverage, Competitors2
Amazon.com Inc. 3.65 3.34 2.25 3.01 1.99
Dollar General Corp. 2.60 2.62 2.89 2.96 2.92
Home Depot Inc. 7.80 7.49 7.39 6.99 6.71
Lowe’s Cos. Inc. 3.68 5.31 5.31 5.29 5.42
Target Corp. 6.16 5.10 4.29 7.12 4.39
TJX Cos. Inc. 3.39 3.35 3.51 3.59 3.61
Walmart Inc. 3.14 3.89 5.13 5.29 5.71
Fixed Charge Coverage, Sector
General Retailers 4.19 4.38 4.64 5.12 5.01
Fixed Charge Coverage, Industry
Consumer Services 3.88 4.00 4.52 4.78 4.96

Based on: 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,183 ÷ 418 = 12.40

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Costco Wholesale Corp.’s fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019.