Costco Wholesale Corp. (NASDAQ:COST)

Debt to Equity Ratio

The debt to equity ratio exhibited notable fluctuations over the observed periods. Initially, the ratio ranged between 0.34 and 0.54, peaking in May 2020. From early 2021 onward, a gradual declining trend was evident, with the ratio decreasing from approximately 0.49 to 0.20 by August 2025. This suggests a consistent reduction in leverage relative to equity capital.

Debt to Equity Ratio Including Operating Lease Liability

This metric followed a similar pattern as the basic debt to equity ratio but at higher absolute values due to the inclusion of operating lease liabilities. It peaked near 0.69 in February and November 2020, then gradually declined to 0.28 by August 2025. The decline during later periods is indicative of decreasing obligations from both debt and operating leases relative to equity.

Debt to Capital Ratio

The debt to capital ratio showed moderate volatility with a peak around 0.35 in May 2020. Subsequently, it generally declined from 0.33 in early 2021 to 0.17 by August 2025, reflecting a reduction in debt proportion relative to total capital, further supporting the decrease in financial leverage.

Debt to Capital Ratio Including Operating Lease Liability

This ratio followed the overall trend of debt to capital but consistently showed higher values due to lease liabilities, peaking at 0.41 in May and November 2020. From early 2021 it declined steadily to 0.22 by August 2025, trending similarly to the debt to equity ratio with operating leases factored in.

Debt to Assets Ratio

The debt to assets ratio remained relatively low throughout the periods, with an initial increase to 0.18 in May 2020, followed by a gradual decline to around 0.08 by August 2025. This indicates an overall limited reliance on debt in relation to total assets and an improving asset coverage of liabilities.

Debt to Assets Ratio Including Operating Lease Liability

This ratio mirrored the debt to assets ratio but at elevated levels due to operating leases. It peaked at 0.22 in May 2020 and gradually decreased to 0.11 by August 2025, suggesting prudent management of both debt and lease-related asset obligations.

Financial Leverage Ratio

Financial leverage showed some volatility across the periods, initially fluctuating between approximately 2.9 and 4.0. There was a notable peak of 4.05 in November 2020, followed by a general downward trend stabilizing around 2.6 to 3.0 from early 2023 onward. This reflects a modest reduction in reliance on borrowed funds relative to equity.

Interest Coverage Ratio

The interest coverage ratio was not reported for the earliest periods but from August 2020 onwards it demonstrated consistent improvement. Beginning at 34.54 it steadily increased over time, reaching 71.25 by August 2025. This improvement indicates a stronger ability to cover interest expenses through operating earnings, signifying enhanced financial health and lower risk associated with debt servicing.

The financial data reveals several noteworthy trends regarding the company’s capital structure over the observed periods. Total debt exhibits fluctuating patterns with occasional increases and decreases. Initially, there is a decline in total debt from approximately 6.8 billion USD to around 5.6 billion USD, followed by a significant rise peaking near 9.1 billion USD. Subsequently, the debt levels generally decline again, approaching lower levels closer to 5.8 billion USD towards the later periods.

In contrast, total stockholders’ equity shows a consistent upward trajectory throughout the timeline. Beginning at approximately 15.9 billion USD, equity steadily rises to reach about 29.2 billion USD by the end of the series. This consistent growth reflects ongoing accumulation of retained earnings or capital increases contributing to strengthening the equity base.

The debt-to-equity ratio mirrors the interplay between total debt and equity over time. Early fluctuations in debt compared to equity cause the ratio to vary, initially starting at 0.43, dropping to a low of 0.2, and briefly rising to a higher point around 0.54. However, from the midpoint onward, the ratio trends downwards, indicating a gradual reduction in financial leverage. By the end of the analyzed interval, the debt-to-equity ratio decreases to approximately 0.2, reflecting a comparatively lower reliance on debt financing relative to equity.

Debt Trends

Total debt exhibits volatility with a notable peak in mid-periods, followed by a general decline towards the latter part of the timeline.

Equity Trends

Total stockholders’ equity consistently grows across all periods, nearly doubling over the time span, indicating strengthening of the company’s net asset base.

Leverage Trends

The debt-to-equity ratio fluctuates early on but exhibits a clear downward trend in the later periods, signifying conservative leverage and a stronger equity position relative to debt.

The financial data exhibits significant trends in the company's leverage and equity position over the reported quarterly periods. The total debt, inclusive of operating lease liabilities, shows fluctuations with a peak noted around May 2020, followed by a general declining trend through subsequent quarters. Despite some quarters demonstrating a modest increase, the overall movement indicates a gradual reduction in total debt levels by the latest reported periods.

Conversely, total stockholders’ equity has demonstrated consistent growth over the observed timeframe. Starting from a base in late 2019, the equity increased steadily through many of the quarters, reaching notably higher levels toward the more recent quarters. This upward trend suggests a strengthening equity base, reflecting retained earnings accumulation and possible capital injections over time.

The debt-to-equity ratio, which measures the level of financial leverage, initially experienced some volatility with several rises and falls in the early period but shows a clear downward trajectory in the later quarters. The ratio decreased from levels close to 0.7 in early 2020 to below 0.3 in the most recent quarters. This decline indicates that equity growth has outpaced debt accumulation, leading to reduced reliance on debt financing relative to equity.

Total Debt

Displayed variability with an initial peak followed by a gradual decrease, signifying managed debt reduction efforts or changes in lease obligations.

Total Stockholders’ Equity

Consistently increased across the reported periods, reflecting strengthening financial stability and shareholder value.

Debt to Equity Ratio

Decreased notably over time, indicating reduced financial leverage and improved capital structure robustness.

Overall, the company's financial data reveals a strategic movement towards strengthening the balance sheet by increasing equity and reducing relative debt levels, enhancing financial flexibility and potentially lowering financial risk.

The analysis of the financial data reveals several noteworthy trends concerning the company's debt and capital structure over the observed periods.

Total debt

The total debt exhibits some fluctuation over time, initially showing an increase from approximately 5,599 million US dollars in early 2020 to a peak near 9,095 million US dollars by May 2020. Following this peak, debt levels generally decline and stabilize, with some minor variations. From late 2021 onwards, total debt trends downward more consistently, reaching levels below 6,000 million US dollars by 2024 and maintaining a range close to this figure through mid-2025. This suggests a shift towards moderate debt reduction and stabilization in recent periods.

Total capital

Total capital demonstrates a mostly upward trend throughout the timeline. Starting at approximately 22,213 million US dollars in early 2020, capital steadily increases and crosses a threshold above 30,000 million US dollars by 2023-2024. The growth continues with some accelerated rises visible around 2023, culminating near 34,952 million US dollars by mid-2025. This consistent increase indicates a strengthening capital base, which could be attributed to retained earnings, equity issuance, or other capital accumulation mechanisms.

Debt to capital ratio

The debt to capital ratio declines substantively over the periods analyzed. Beginning at 0.35 at its peak in mid-2020, the ratio decreases steadily thereafter, indicating a reduced proportion of debt in the overall capital structure. By late 2021, the ratio falls below 0.30 and moves further down to approximately 0.17 by mid-2025. The decreasing trend highlights improved financial leverage and potentially reduced risk associated with the company's financing strategy, implying a move towards greater reliance on equity or other capital sources instead of debt.

In summary, the data reflects a strategic reduction in debt levels complemented by substantial growth in total capital, resulting in a declining debt-to-capital ratio. This dynamic points to a conservative financial approach that enhances balance sheet robustness and may improve financial flexibility going forward.

The financial data reveals several key trends regarding the company's debt structure and overall capital over multiple quarters.

Total Debt (Including Operating Lease Liability)

The total debt fluctuated notably in the earlier periods, peaking at 11,630 million USD around May 2020, before gradually declining. From the period starting roughly in late 2021 through the subsequent quarters, a general downward trend is evident, with total debt decreasing from approximately 9,347 million USD to around 8,248 million USD by November 2024. This indicates a consistent effort to reduce debt levels in recent periods, though slight fluctuations occur periodically.

Total Capital (Including Operating Lease Liability)

Total capital shows an overall upward trend across the entire timeframe. After fairly stable levels near 25,000 million USD in the early periods, total capital increased steadily from mid-2021 onward, reaching above 37,000 million USD by August 2025. Despite some minor dips, the growth in total capital suggests that the company has been expanding its capital base consistently over time.

Debt to Capital Ratio (Including Operating Lease Liability)

The ratio of debt to capital demonstrates a downward trend over the reported periods. Early values show ratios above 0.4 but decline gradually to approximately 0.22 by the last quarter. This decreasing ratio reflects improved capital management and a relative reduction in the company's reliance on debt financing as a portion of its total capital. It indicates strengthened financial leverage and possibly reduced financial risk.

In summary, the company exhibits a clear pattern of reducing absolute debt levels while simultaneously increasing total capital, thereby lowering the debt-to-capital ratio. This trend suggests enhanced financial stability and a more conservative financing approach over time.

Total Debt

The total debt exhibits fluctuations across the observed periods. Initially, there was a decline from approximately 6.8 billion to 5.6 billion, followed by a notable increase to a peak near 9.1 billion. Subsequently, the debt level decreased gradually and stabilized around 6.5 billion to 6.9 billion in recent periods. In the later quarters, particularly from late 2024 onward, total debt showed a moderate downward trend, ending slightly below 5.8 billion.

Total Assets

Total assets demonstrate a general upward trajectory over the time frame. Beginning close to 51.4 billion, assets increased steadily with some variability, reaching over 73 billion in late 2024 and early 2025. The data indicates periods of accelerated asset growth, especially from late 2022 through mid-2023 and again toward the end of 2024, suggesting ongoing expansion or acquisition activity.

Debt to Assets Ratio

The debt to assets ratio remained relatively low throughout the periods, ranging between 0.08 and 0.18. The ratio peaked near 0.18 in mid-2020, corresponding to the highest total debt relative to assets observed at that time. Following this peak, the ratio declined steadily, stabilizing near 0.08 from mid-2024 onwards. This suggests an improved balance sheet strength and lower financial leverage in more recent quarters.

Summary of Financial Trends

The company maintained a conservative leverage ratio over the examined periods, with total debt levels subject to moderate volatility but not exceeding one-fifth of total assets at any point. The consistent growth in total assets, accompanied by a declining debt to asset ratio in later periods, reflects enhanced asset accumulation and reduced reliance on debt financing. The lower leverage in recent periods may indicate a strategic focus on strengthening the balance sheet and ensuring financial stability.

The financial data reveals several notable trends in the leverage and asset base over the examined periods. The total debt, including operating lease liabilities, displayed fluctuations throughout the timeframe. Initially, total debt decreased from 9,249 million to 8,045 million between late 2019 and early 2020, followed by an increase peaking at 11,630 million in mid-2020. After this peak, the debt level generally trended downward with minor fluctuations, reaching approximately 8,248 million by late 2024 and maintaining near this level afterward.

Total assets showed a consistent upward trajectory over the periods analyzed. Starting from 51,431 million in late 2019, assets increased steadily with only minor decreases in certain quarters. This culminated in a significant rise to 77,099 million by late 2025, indicating expansion or increased asset accumulation over time.

The debt-to-assets ratio, which measures financial leverage, decreased overall from 0.18 in late 2019 to 0.11 by late 2025. The ratio fluctuated in the earlier periods, peaking at 0.22 in mid-2020 which corresponded with the highest total debt levels. Following this, the ratio demonstrated a gradual decline with some stability around 0.13 to 0.14 in the middle periods, ultimately trending downward to 0.11 in the final quarters. This decline indicates an improvement in the company's leverage position, with assets increasing at a faster rate than total debt.

Total Debt (including operating lease liability)

Experienced initial decline, a marked increase during mid-2020, then a general downward trend towards 2024-2025.

Total Assets

Showed consistent growth from 2019 through 2025, reflecting expansion or asset acquisition.

Debt-to-Assets Ratio

Peaked in mid-2020, then steadily decreased to low levels by late 2025, indicating reduced leverage relative to asset size.

Total assets

The total assets exhibit an overall upward trend across the reported periods. Starting from approximately $51.4 billion, total assets rose steadily with some fluctuations, reaching about $77.1 billion by the final period. Notable increases are observed particularly from mid-2023 onward, highlighting an accelerated growth phase. Some intervals, such as early 2024, show temporary declines or plateaus, suggesting possible asset reallocation or market adjustments.

Total Costco stockholders’ equity

Equity capital shows sustained growth over the quarters, increasing from roughly $15.9 billion to about $29.2 billion. The progression is relatively consistent until early 2024, where a significant dip is recorded, with equity falling to around $20.8 billion before recovering in subsequent quarters. This suggests a period of financial restructuring or changes in retained earnings impacting book value. Post-dip, a strong recovery and growth trend resume, underlining resilience in shareholder equity.

Financial leverage

The financial leverage ratio fluctuates notably throughout the periods. Starting at a high level near 3.24, the ratio initially decreases to around 2.75-3.0 in some mid-range quarters before spiking again near 4.05 in late 2020, indicating increased reliance on debt or liabilities relative to equity at that time. Following this peak, leverage gradually declines and stabilizes around 2.6 to 3.2 from mid-2022 onwards, suggesting a strategic effort to reduce debt relative to equity and maintain a more balanced capital structure.

The analysis of the earnings before interest and tax (EBIT) over the reported periods reveals significant fluctuations with an overall upward trend. Initially, EBIT shows moderate values around 1,000 to 1,300 million US dollars, followed by a notable increase to above 2,300 million in the latter half of the timeline. The highest recorded EBIT value reaches 3,556 million US dollars near the end of the observed periods, indicating strengthened operational profitability or improved business conditions.

Interest expense remains relatively stable throughout the periods, generally ranging between 34 and 56 million US dollars. There are minor fluctuations without a clear trend of increase or decrease, suggesting consistent borrowing costs or carefully managed debt levels over time.

The interest coverage ratio indicates the company's ability to meet interest obligations from its operating earnings. The initial periods do not provide coverage data, but from the available metrics, there is a clear and consistent upward trend in this ratio. Starting from approximately 34.54 and progressively increasing to above 71 by the final period, it highlights strong improvement in financial health and increased capacity to service debt comfortably. This rising trend reflects higher earnings relative to interest expenses, further emphasizing enhanced operational performance.

Overall, the data depicts a company with growing earnings generating increased operational cash flows, stable interest expenses, and improved ability to cover interest payments, suggesting positive financial stability and effective management of financial obligations over the analyzed periods.

Earnings before Interest and Tax (EBIT)

Exhibits fluctuations but demonstrates an upward trajectory with peaks exceeding 3,500 million US dollars in recent periods.

Interest Expense

Remains fairly constant, mostly fluctuating between 34 and 56 million US dollars without substantial variation.

Interest Coverage Ratio

Shows a strong and continuous increase from mid-30s to above 70, indicating improving operational earnings relative to interest costs.