Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Costco Wholesale Corp., solvency ratios
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
The solvency profile demonstrates a consistent strengthening of the balance sheet over the analyzed period, characterized by a systematic reduction in leverage and a significant increase in debt-servicing capacity.
- Leverage and Capital Structure
- A sustained downward trend is evident across all debt-to-equity, debt-to-capital, and debt-to-asset metrics. The debt-to-equity ratio decreased from 0.49 in 2021 to 0.21 by 2026. Similarly, the debt-to-assets ratio declined from 0.14 to 0.09. These reductions are mirrored in the ratios that include operating lease liabilities, which fell from 0.65 to 0.28 for debt-to-equity and from 0.19 to 0.11 for debt-to-assets. This indicates a consistent shift toward equity financing and a reduction in total liabilities relative to the asset base.
- Financial Leverage
- Financial leverage exhibited an overall decrease, moving from 3.37 in 2021 to 2.49 in 2026. Although a marginal increase was observed between 2023 and 2024, the long-term trajectory reflects a reduction in the use of borrowed funds to finance assets, thereby lowering the overall financial risk profile.
- Debt Coverage and Servicing
- Capacity to meet financial obligations has expanded substantially. The interest coverage ratio grew from 40.06 in 2021 to 85.49 in 2026, suggesting a vastly improved margin of safety for interest payments. Parallel to this, the fixed charge coverage ratio increased from 15.30 to 29.69, confirming a strengthened ability to cover both interest and other fixed financial commitments.
The simultaneous decline in leverage ratios and the rapid escalation of coverage ratios indicate a transition toward a highly conservative solvency position. The ability to service existing debt has grown at a rate that significantly outpaces the remaining debt load, resulting in a substantial mitigation of insolvency risk.
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Debt to Equity
Costco Wholesale Corp., debt to equity calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,248) | 75) | 103) | 1,081) | 73) | 799) | |
| Current finance lease liabilities | 94) | 78) | 147) | 129) | 245) | 72) | |
| Long-term debt, excluding current portion | 3,914) | 5,713) | 5,794) | 5,377) | 6,484) | 6,692) | |
| Long-term finance lease liabilities | 1,319) | 1,401) | 1,351) | 1,303) | 1,383) | 980) | |
| Total debt | 7,575) | 7,267) | 7,395) | 7,890) | 8,185) | 8,543) | |
| Total Costco stockholders’ equity | 35,803) | 29,164) | 23,622) | 25,058) | 20,642) | 17,564) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.21 | 0.25 | 0.31 | 0.31 | 0.40 | 0.49 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Target Corp. | 1.02 | 1.09 | 1.19 | 1.44 | 1.07 | 0.88 | |
| Walmart Inc. | 0.52 | 0.50 | 0.56 | 0.58 | 0.51 | 0.60 | |
| Debt to Equity, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.51 | 0.58 | 0.61 | 0.55 | 0.62 | |
| Debt to Equity, Industry | |||||||
| Consumer Staples | — | 1.05 | 1.11 | 1.16 | 1.08 | 1.07 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Debt to equity = Total debt ÷ Total Costco stockholders’ equity
= 7,575 ÷ 35,803 = 0.21
2 Click competitor name to see calculations.
An analysis of the solvency metrics indicates a consistent improvement in the company's leverage profile between August 2021 and August 2026. The overall trajectory reflects a strategic reduction in reliance on borrowed capital relative to shareholder equity, leading to a strengthened balance sheet.
- Total Debt Trends
- Total debt exhibited a general downward trend for the majority of the period, decreasing from US$ 8,543 million in 2021 to a low of US$ 7,267 million in 2025. A marginal increase to US$ 7,575 million is observed in 2026, though the total remains significantly lower than the 2021 baseline.
- Stockholders' Equity Growth
- Total stockholders' equity demonstrated substantial growth, rising from US$ 17,564 million in 2021 to US$ 35,803 million by 2026. Despite a slight contraction in 2024 to US$ 23,622 million, the long-term trend shows a robust expansion of the equity base, more than doubling over the six-year span.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio declined steadily from 0.49 in 2021 to 0.21 in 2026. This consistent reduction is the result of the simultaneous decrease in total debt and the significant increase in equity. The data indicates a shift toward a more conservative capital structure and a reduction in financial risk, as the proportion of debt used to finance assets has diminished relative to owner investments.
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Debt to Equity (including Operating Lease Liability)
Costco Wholesale Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,248) | 75) | 103) | 1,081) | 73) | 799) | |
| Current finance lease liabilities | 94) | 78) | 147) | 129) | 245) | 72) | |
| Long-term debt, excluding current portion | 3,914) | 5,713) | 5,794) | 5,377) | 6,484) | 6,692) | |
| Long-term finance lease liabilities | 1,319) | 1,401) | 1,351) | 1,303) | 1,383) | 980) | |
| Total debt | 7,575) | 7,267) | 7,395) | 7,890) | 8,185) | 8,543) | |
| Current operating lease liabilities (included in Other current liabilities) | 192) | 208) | 179) | 220) | 239) | 222) | |
| Long-term operating lease liabilities | 2,414) | 2,460) | 2,375) | 2,426) | 2,482) | 2,642) | |
| Total debt (including operating lease liability) | 10,181) | 9,935) | 9,949) | 10,536) | 10,906) | 11,407) | |
| Total Costco stockholders’ equity | 35,803) | 29,164) | 23,622) | 25,058) | 20,642) | 17,564) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.28 | 0.34 | 0.42 | 0.42 | 0.53 | 0.65 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 1.26 | 1.36 | 1.46 | 1.70 | 1.28 | 1.05 | |
| Walmart Inc. | 0.67 | 0.66 | 0.73 | 0.77 | 0.69 | 0.78 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.67 | 0.75 | 0.78 | 0.73 | 0.79 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | — | 1.16 | 1.23 | 1.28 | 1.20 | 1.19 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Costco stockholders’ equity
= 10,181 ÷ 35,803 = 0.28
2 Click competitor name to see calculations.
A comprehensive assessment of the solvency position reveals a consistent strengthening of the financial structure from 2021 through 2026. The overarching trend is characterized by a significant reduction in financial leverage, driven by a combination of decreasing total liabilities and substantial growth in shareholders' equity.
- Total Debt Trends
- Total debt, including operating lease liabilities, experienced a general decline from US$ 11,407 million in August 2021 to a low of US$ 9,935 million in August 2025. While a slight increase to US$ 10,181 million is observed by August 2026, the overall liability levels remain lower than the initial 2021 baseline.
- Equity Growth
- Stockholders' equity demonstrated robust growth over the analyzed period, rising from US$ 17,564 million in 2021 to US$ 35,803 million in 2026. Despite a marginal contraction in 2024, the long-term trajectory indicates a significant expansion of the equity base, which more than doubled over the five-year span.
- Debt-to-Equity Ratio Analysis
- The debt-to-equity ratio exhibits a continuous downward trajectory, falling from 0.65 in 2021 to 0.28 by 2026. This progression signifies a diminishing reliance on borrowed funds relative to equity, indicating an improved solvency profile and a reduction in financial risk.
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Debt to Capital
Costco Wholesale Corp., debt to capital calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,248) | 75) | 103) | 1,081) | 73) | 799) | |
| Current finance lease liabilities | 94) | 78) | 147) | 129) | 245) | 72) | |
| Long-term debt, excluding current portion | 3,914) | 5,713) | 5,794) | 5,377) | 6,484) | 6,692) | |
| Long-term finance lease liabilities | 1,319) | 1,401) | 1,351) | 1,303) | 1,383) | 980) | |
| Total debt | 7,575) | 7,267) | 7,395) | 7,890) | 8,185) | 8,543) | |
| Total Costco stockholders’ equity | 35,803) | 29,164) | 23,622) | 25,058) | 20,642) | 17,564) | |
| Total capital | 43,378) | 36,431) | 31,017) | 32,948) | 28,827) | 26,107) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.17 | 0.20 | 0.24 | 0.24 | 0.28 | 0.33 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Target Corp. | 0.50 | 0.52 | 0.54 | 0.59 | 0.52 | 0.47 | |
| Walmart Inc. | 0.34 | 0.33 | 0.36 | 0.37 | 0.34 | 0.38 | |
| Debt to Capital, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.34 | 0.37 | 0.38 | 0.36 | 0.38 | |
| Debt to Capital, Industry | |||||||
| Consumer Staples | — | 0.51 | 0.53 | 0.54 | 0.52 | 0.52 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,575 ÷ 43,378 = 0.17
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent strengthening of the balance sheet over the analyzed period. A clear divergence is observed between the trajectories of total debt and total capital, resulting in a significant and steady reduction in the debt-to-capital ratio.
- Total Debt Analysis
- Total debt followed a general downward trajectory for the majority of the period, decreasing from US$ 8,543 million in August 2021 to a minimum of US$ 7,267 million in August 2025. A marginal increase to US$ 7,575 million was recorded in August 2026, yet the overall debt levels remain substantially lower than the initial 2021 figures.
- Total Capital Evolution
- Total capital demonstrated robust growth, increasing from US$ 26,107 million in 2021 to US$ 43,378 million by August 2026. While a temporary contraction occurred in September 2024, where capital dipped to US$ 31,017 million, the long-term trend indicates a significant expansion of the capital base.
- Debt to Capital Ratio Interpretation
- The debt to capital ratio declined consistently from 0.33 in August 2021 to 0.17 in August 2026. This contraction reflects a decreased reliance on leverage and suggests that the growth in total capital was driven primarily by equity or retained earnings rather than new debt issuance, thereby enhancing the organization's long-term financial stability.
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Debt to Capital (including Operating Lease Liability)
Costco Wholesale Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,248) | 75) | 103) | 1,081) | 73) | 799) | |
| Current finance lease liabilities | 94) | 78) | 147) | 129) | 245) | 72) | |
| Long-term debt, excluding current portion | 3,914) | 5,713) | 5,794) | 5,377) | 6,484) | 6,692) | |
| Long-term finance lease liabilities | 1,319) | 1,401) | 1,351) | 1,303) | 1,383) | 980) | |
| Total debt | 7,575) | 7,267) | 7,395) | 7,890) | 8,185) | 8,543) | |
| Current operating lease liabilities (included in Other current liabilities) | 192) | 208) | 179) | 220) | 239) | 222) | |
| Long-term operating lease liabilities | 2,414) | 2,460) | 2,375) | 2,426) | 2,482) | 2,642) | |
| Total debt (including operating lease liability) | 10,181) | 9,935) | 9,949) | 10,536) | 10,906) | 11,407) | |
| Total Costco stockholders’ equity | 35,803) | 29,164) | 23,622) | 25,058) | 20,642) | 17,564) | |
| Total capital (including operating lease liability) | 45,984) | 39,099) | 33,571) | 35,594) | 31,548) | 28,971) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.22 | 0.25 | 0.30 | 0.30 | 0.35 | 0.39 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 0.56 | 0.58 | 0.59 | 0.63 | 0.56 | 0.51 | |
| Walmart Inc. | 0.40 | 0.40 | 0.42 | 0.43 | 0.41 | 0.44 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.40 | 0.43 | 0.44 | 0.42 | 0.44 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | — | 0.54 | 0.55 | 0.56 | 0.54 | 0.54 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 10,181 ÷ 45,984 = 0.22
2 Click competitor name to see calculations.
The financial trajectory indicates a sustained improvement in the solvency position over the analyzed period. There is a clear trend toward reducing the reliance on debt relative to the overall capital structure, reflecting a strengthening of the balance sheet.
- Total Debt Evolution
- Total debt, including operating lease liabilities, demonstrated a consistent decline from August 2021 (US$ 11,407 million) through August 2025 (US$ 9,935 million). A marginal increase is observed by August 2026, reaching US$ 10,181 million, though the level remains substantially below the 2021 peak.
- Total Capital Growth
- Total capital exhibits a strong upward trajectory, increasing from US$ 28,971 million in 2021 to US$ 45,984 million in 2026. Despite a slight contraction in September 2024, the overall growth pattern indicates a significant expansion of the total capital base.
- Debt to Capital Ratio Analysis
- The debt to capital ratio reflects a consistent downward trend, falling from 0.39 in August 2021 to 0.22 in August 2026. The ratio experienced a period of stability at 0.30 during 2023 and 2024 before continuing to decline. This suggests a strategic shift toward a less leveraged capital structure and an increased reliance on equity or retained earnings to fund operations.
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Debt to Assets
Costco Wholesale Corp., debt to assets calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,248) | 75) | 103) | 1,081) | 73) | 799) | |
| Current finance lease liabilities | 94) | 78) | 147) | 129) | 245) | 72) | |
| Long-term debt, excluding current portion | 3,914) | 5,713) | 5,794) | 5,377) | 6,484) | 6,692) | |
| Long-term finance lease liabilities | 1,319) | 1,401) | 1,351) | 1,303) | 1,383) | 980) | |
| Total debt | 7,575) | 7,267) | 7,395) | 7,890) | 8,185) | 8,543) | |
| Total assets | 89,045) | 77,099) | 69,831) | 68,994) | 64,166) | 59,268) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.09 | 0.09 | 0.11 | 0.11 | 0.13 | 0.14 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Target Corp. | 0.28 | 0.28 | 0.29 | 0.30 | 0.25 | 0.25 | |
| Walmart Inc. | 0.18 | 0.18 | 0.19 | 0.18 | 0.17 | 0.19 | |
| Debt to Assets, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.17 | 0.19 | 0.19 | 0.18 | 0.19 | |
| Debt to Assets, Industry | |||||||
| Consumer Staples | — | 0.31 | 0.31 | 0.31 | 0.30 | 0.30 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,575 ÷ 89,045 = 0.09
2 Click competitor name to see calculations.
The financial trajectory between 2021 and 2026 indicates a significant strengthening of the solvency position. A consistent reduction in financial leverage is evident, driven by a simultaneous expansion of the asset base and a general contraction of total debt.
- Total Debt Trends
- Total debt exhibited a steady decline from 8,543 million US$ in 2021 to a low of 7,267 million US$ in 2025. Although a slight increase to 7,575 million US$ was recorded in 2026, the overall debt level remains substantially lower than the 2021 baseline, suggesting a disciplined approach to liability management.
- Asset Growth
- Total assets demonstrated consistent and robust growth throughout the analyzed period. Assets rose from 59,268 million US$ in 2021 to 89,045 million US$ by 2026. This upward trend reflects a significant increase in the scale of the balance sheet over the six-year duration.
- Debt to Assets Ratio
- The debt to assets ratio declined progressively from 0.14 in 2021 to 0.09 by 2025, remaining stable at 0.09 in 2026. This downward trend confirms that a smaller proportion of assets is financed through debt, indicating reduced financial risk and an enhanced capacity to meet long-term obligations.
The divergence between growing assets and decreasing debt highlights an improving solvency profile. The stability of the debt to assets ratio at 0.09 in the final two years suggests that the organization has reached a highly conservative leverage equilibrium.
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Debt to Assets (including Operating Lease Liability)
Costco Wholesale Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 2,248) | 75) | 103) | 1,081) | 73) | 799) | |
| Current finance lease liabilities | 94) | 78) | 147) | 129) | 245) | 72) | |
| Long-term debt, excluding current portion | 3,914) | 5,713) | 5,794) | 5,377) | 6,484) | 6,692) | |
| Long-term finance lease liabilities | 1,319) | 1,401) | 1,351) | 1,303) | 1,383) | 980) | |
| Total debt | 7,575) | 7,267) | 7,395) | 7,890) | 8,185) | 8,543) | |
| Current operating lease liabilities (included in Other current liabilities) | 192) | 208) | 179) | 220) | 239) | 222) | |
| Long-term operating lease liabilities | 2,414) | 2,460) | 2,375) | 2,426) | 2,482) | 2,642) | |
| Total debt (including operating lease liability) | 10,181) | 9,935) | 9,949) | 10,536) | 10,906) | 11,407) | |
| Total assets | 89,045) | 77,099) | 69,831) | 68,994) | 64,166) | 59,268) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.11 | 0.13 | 0.14 | 0.15 | 0.17 | 0.19 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Target Corp. | 0.34 | 0.34 | 0.35 | 0.36 | 0.31 | 0.29 | |
| Walmart Inc. | 0.24 | 0.23 | 0.24 | 0.24 | 0.23 | 0.25 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.23 | 0.24 | 0.24 | 0.23 | 0.25 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | — | 0.34 | 0.34 | 0.34 | 0.33 | 0.33 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 10,181 ÷ 89,045 = 0.11
2 Click competitor name to see calculations.
The financial data indicates a consistent improvement in the solvency position between August 2021 and August 2026. This improvement is characterized by a simultaneous reduction in total debt obligations and a steady expansion of the asset base, resulting in a significant decrease in the debt-to-assets ratio.
- Total Debt Dynamics
- Total debt, including operating lease liabilities, exhibited a general downward trajectory for the majority of the period. Obligations decreased from US$ 11,407 million in 2021 to a low of US$ 9,935 million in 2025, ending the period at US$ 10,181 million in 2026. This overall decline suggests a controlled approach to liability management.
- Asset Base Expansion
- Total assets demonstrated continuous and robust growth throughout the observed timeframe. Assets increased from US$ 59,268 million in 2021 to US$ 89,045 million in 2026. This steady upward trend reflects a substantial increase in the organization's resource base, providing a larger buffer to cover its financial obligations.
- Debt to Assets Ratio Trend
- The debt-to-assets ratio declined monotonically from 0.19 in 2021 to 0.11 in 2026. This compression of the ratio is the direct result of the divergence between decreasing debt levels and growing assets. The trend highlights a strengthening solvency profile, as a decreasing proportion of total assets is financed through debt, thereby reducing financial risk and increasing long-term stability.
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Financial Leverage
Costco Wholesale Corp., financial leverage calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 89,045) | 77,099) | 69,831) | 68,994) | 64,166) | 59,268) | |
| Total Costco stockholders’ equity | 35,803) | 29,164) | 23,622) | 25,058) | 20,642) | 17,564) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.49 | 2.64 | 2.96 | 2.75 | 3.11 | 3.37 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Target Corp. | 3.68 | 3.94 | 4.12 | 4.75 | 4.20 | 3.55 | |
| Walmart Inc. | 2.86 | 2.87 | 3.01 | 3.17 | 2.94 | 3.12 | |
| Financial Leverage, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 2.93 | 3.12 | 3.24 | 3.11 | 3.21 | |
| Financial Leverage, Industry | |||||||
| Consumer Staples | — | 3.42 | 3.62 | 3.71 | 3.59 | 3.59 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Financial leverage = Total assets ÷ Total Costco stockholders’ equity
= 89,045 ÷ 35,803 = 2.49
2 Click competitor name to see calculations.
The financial trajectory from August 2021 to August 2026 indicates a consistent expansion of the balance sheet accompanied by a systemic reduction in financial leverage. Total assets grew steadily from 59,268 million US$ to 89,045 million US$, reflecting a significant increase in the company's resource base over the observed period.
- Financial Leverage Trend
- A general downward trend is observed in the financial leverage ratio, which declined from 3.37 in 2021 to 2.49 by 2026. This contraction suggests a transition toward a more conservative capital structure and a reduced reliance on liabilities relative to equity to finance operations and growth.
- Equity Dynamics
- Total stockholders' equity increased from 17,564 million US$ in 2021 to 35,803 million US$ in 2026. Although a brief contraction occurred in September 2024, where equity fell to 23,622 million US$, the overall upward trajectory in equity has been a primary driver in lowering the leverage ratio.
- Solvency and Asset Growth Correlation
- The relationship between asset growth and leverage indicates improved solvency. Despite the substantial rise in total assets, the leverage ratio decreased in five of the six periods analyzed. The temporary uptick to 2.96 in 2024 aligns with the simultaneous dip in stockholders' equity, confirming that the leverage ratio is highly sensitive to equity fluctuations during this period.
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Interest Coverage
Costco Wholesale Corp., interest coverage calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Costco | 9,226) | 8,099) | 7,367) | 6,292) | 5,844) | 5,007) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | 71) | 72) | |
| Add: Income tax expense | 3,025) | 2,719) | 2,373) | 2,195) | 1,925) | 1,601) | |
| Add: Interest expense | 145) | 154) | 169) | 160) | 158) | 171) | |
| Earnings before interest and tax (EBIT) | 12,396) | 10,972) | 9,909) | 8,647) | 7,998) | 6,851) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 85.49 | 71.25 | 58.63 | 54.04 | 50.62 | 40.06 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Target Corp. | 11.71 | 13.80 | 11.55 | 8.15 | 22.16 | 6.68 | |
| Walmart Inc. | 11.53 | 10.64 | 9.14 | 9.00 | 10.38 | 9.88 | |
| Interest Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 13.87 | 12.00 | 11.46 | 14.77 | 10.47 | |
| Interest Coverage, Industry | |||||||
| Consumer Staples | — | 11.79 | 10.92 | 11.37 | 15.69 | 11.46 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Interest coverage = EBIT ÷ Interest expense
= 12,396 ÷ 145 = 85.49
2 Click competitor name to see calculations.
The organization demonstrates a robust and consistently improving capacity to meet its interest obligations over the analyzed period. A strong positive trajectory in operational profitability, coupled with stable financing costs, has resulted in a significant expansion of the solvency margin.
- Earnings Before Interest and Tax (EBIT)
- A continuous upward trend is observed in EBIT, which grew from US$ 6,851 million in August 2021 to US$ 12,396 million by August 2026. This steady increase reflects sustained growth in operational earnings over the six-year span.
- Interest Expense
- Interest expenses have remained relatively stable, showing a slight downward trend. After a peak of US$ 171 million in 2021, the expense declined to US$ 145 million by 2026. This stability suggests a well-managed debt profile and an absence of significant new interest-bearing liabilities that would offset operational gains.
- Interest Coverage Ratio
- The interest coverage ratio has increased substantially, rising from 40.06 in August 2021 to 85.49 in August 2026. This indicates that the ability to service debt from operating profits has more than doubled, providing an exceptional margin of safety and reducing financial risk to a negligible level.
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Fixed Charge Coverage
Costco Wholesale Corp., fixed charge coverage calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Costco | 9,226) | 8,099) | 7,367) | 6,292) | 5,844) | 5,007) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | 71) | 72) | |
| Add: Income tax expense | 3,025) | 2,719) | 2,373) | 2,195) | 1,925) | 1,601) | |
| Add: Interest expense | 145) | 154) | 169) | 160) | 158) | 171) | |
| Earnings before interest and tax (EBIT) | 12,396) | 10,972) | 9,909) | 8,647) | 7,998) | 6,851) | |
| Add: Operating lease costs | 282) | 271) | 284) | 309) | 297) | 296) | |
| Earnings before fixed charges and tax | 12,678) | 11,243) | 10,193) | 8,956) | 8,295) | 7,147) | |
| Interest expense | 145) | 154) | 169) | 160) | 158) | 171) | |
| Operating lease costs | 282) | 271) | 284) | 309) | 297) | 296) | |
| Fixed charges | 427) | 425) | 453) | 469) | 455) | 467) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 29.69 | 26.45 | 22.50 | 19.10 | 18.23 | 15.30 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Target Corp. | 5.20 | 6.00 | 6.04 | 4.62 | 12.02 | 5.24 | |
| Walmart Inc. | 6.63 | 6.18 | 5.40 | 4.84 | 5.38 | 5.16 | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 7.47 | 6.71 | 5.95 | 7.41 | 5.88 | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Staples | — | 7.80 | 7.38 | 7.41 | 9.12 | 7.50 | |
Based on: 10-K (reporting date: 2026-08-30), 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29).
1 2026 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 12,678 ÷ 427 = 29.69
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a significant and consistent strengthening of its capacity to meet fixed financial obligations over the period ending August 30, 2026. The overall trend is characterized by a substantial increase in the fixed charge coverage ratio, which grew from 15.30 in 2021 to 29.69 in 2026, indicating a marked improvement in financial stability.
- Earnings Performance
- Earnings before fixed charges and tax exhibited a continuous and robust upward trajectory, rising from US$ 7,147 million in 2021 to US$ 12,678 million by 2026. This steady growth in operating profitability has provided the primary driver for the enhanced solvency margins observed over the six-year span.
- Fixed Charge Stability
- Fixed charges remained remarkably stable, with no significant volatility. Obligations fluctuated within a narrow range, peaking at US$ 469 million in 2023 and reaching a low of US$ 425 million in 2025. A marginal overall decline in fixed charges is observed from the start to the end of the period, contributing to the expansion of the coverage ratio.
- Coverage Ratio Analysis
- The fixed charge coverage ratio expanded year-over-year, nearly doubling over the analyzed timeframe. This acceleration is the direct result of the divergence between rapidly increasing earnings and stagnant or slightly decreasing fixed costs. The final ratio of 29.69 suggests an exceptionally high margin of safety, as earnings are nearly 30 times the amount required to satisfy fixed obligations.
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