Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Costco Wholesale Corp., solvency ratios (quarterly data)
Based on: 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), 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).
Solvency ratios demonstrate a generally strengthening financial position over the analyzed period, spanning from November 2020 to May 2025, with some fluctuations. A consistent, albeit gradual, decrease in leverage ratios is observed, indicating a reduced reliance on debt financing. Interest coverage remains robust throughout the period, suggesting a strong ability to meet interest obligations.
- Debt to Equity
- The debt to equity ratio exhibits a consistent downward trend, decreasing from 0.51 in November 2020 to 0.18 in February 2026. This indicates a decreasing proportion of financing derived from debt relative to equity. A slight increase is noted in November 2023 and February 2024, but the overall trajectory remains downward. The rate of decline appears to accelerate in the later periods.
- Debt to Equity (Including Operating Lease Liability)
- Similar to the standard debt to equity ratio, this metric also demonstrates a declining trend, moving from 0.68 in November 2020 to 0.25 in February 2026. The inclusion of operating lease liabilities results in higher ratio values compared to the standard debt to equity ratio, but the trend remains consistent. The fluctuations mirror those observed in the standard debt to equity ratio.
- Debt to Capital
- The debt to capital ratio follows the same pattern of decline, decreasing from 0.34 in November 2020 to 0.15 in February 2026. This reinforces the observation of decreasing leverage. A minor increase is seen in November 2023, but the overall trend is clearly downward.
- Debt to Capital (Including Operating Lease Liability)
- This ratio also shows a consistent decrease from 0.40 in November 2020 to 0.20 in February 2026, mirroring the trend observed when excluding operating lease liabilities. The values are consistently higher when including these liabilities, as expected.
- Debt to Assets
- The debt to assets ratio exhibits a relatively stable trend, decreasing from 0.13 in November 2020 to 0.07 in February 2026. The ratio remains relatively low throughout the period, indicating a conservative capital structure. Minor fluctuations are present, but the overall trend is downward.
- Debt to Assets (Including Operating Lease Liability)
- This ratio also demonstrates a decreasing trend, moving from 0.17 in November 2020 to 0.10 in February 2026. The inclusion of operating lease liabilities results in higher values, but the trend remains consistent with the other ratios.
- Financial Leverage
- Financial leverage, measured as total assets to total equity, generally decreases from 4.05 in November 2020 to 2.61 in February 2026. There are some fluctuations, including a peak in September 2023, but the overall trend is downward, indicating a reduced reliance on financial leverage.
- Interest Coverage
- The interest coverage ratio consistently increases over the analyzed period, rising from 36.58 in November 2020 to 77.47 in February 2026. This indicates a substantial and improving ability to cover interest expenses with earnings, suggesting a very strong financial position regarding debt service. The ratio demonstrates a steady and significant improvement throughout the period.
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Debt Ratios
Coverage Ratios
Debt to Equity
Costco Wholesale Corp., debt to equity calculation (quarterly data)
| 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 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total debt | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total Costco stockholders’ equity | 32,087) | 30,303) | 29,164) | 27,125) | 25,577) | 24,451) | 23,622) | 21,771) | 20,760) | 26,147) | 25,058) | 23,568) | 22,794) | 21,471) | 20,642) | 19,968) | 19,418) | 18,463) | 17,564) | 16,482) | 15,652) | 14,860) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.18 | 0.19 | 0.20 | 0.21 | 0.23 | 0.23 | 0.25 | 0.27 | 0.28 | 0.22 | 0.21 | 0.28 | 0.29 | 0.30 | 0.31 | 0.33 | 0.34 | 0.36 | 0.38 | 0.45 | 0.48 | 0.51 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 1.07 | 1.04 | 1.09 | 1.10 | 1.06 | 1.16 | 1.19 | 1.28 | 1.34 | 1.40 | 1.44 | 1.49 | 1.43 | 1.34 | 1.07 | 0.92 | 0.86 | 0.85 | — | — | — | — | |||||||
| Walmart Inc. | 0.56 | 0.63 | 0.50 | 0.54 | 0.56 | 0.62 | 0.56 | 0.70 | 0.63 | 0.68 | 0.58 | 0.71 | 0.65 | 0.68 | 0.51 | 0.52 | 0.58 | 0.62 | — | — | — | — | |||||||
Based on: 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), 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).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Total Costco stockholders’ equity
= 5,688 ÷ 32,087 = 0.18
2 Click competitor name to see calculations.
The debt to equity ratio for the analyzed period demonstrates a consistent downward trend, indicating a strengthening of the company’s financial position with respect to its leverage. Initially, the ratio stood at 0.51 in November 2020, and progressively decreased over the subsequent quarters.
- Overall Trend
- A clear and sustained decline in the debt to equity ratio is observed throughout the analyzed timeframe. The ratio decreased from 0.51 in November 2020 to 0.18 in November 2025. This suggests a reduction in the company’s reliance on debt financing relative to equity.
- Initial Phase (Nov 2020 – Aug 2022)
- From November 2020 to August 2022, the debt to equity ratio experienced a relatively rapid decrease, moving from 0.51 to 0.31. This period reflects a significant improvement in the company’s solvency, potentially due to debt reduction or increases in stockholders’ equity.
- Mid-Period Fluctuation (Nov 2022 – May 2023)
- Between November 2022 and May 2023, the ratio exhibited a more moderate decline, ranging from 0.30 to 0.28. This suggests a stabilization of the debt to equity structure, although the downward trend persisted.
- Recent Phase (Sep 2023 – Feb 2026)
- The period from September 2023 to February 2026 shows a continued, albeit slower, decrease in the ratio, falling from 0.21 to 0.18. This indicates that the company has maintained its focus on strengthening its financial position by further reducing its debt relative to equity. A slight increase is observed in November 2025, but the ratio continues to decline through February 2026.
The consistent reduction in the debt to equity ratio suggests that the company is becoming less reliant on debt financing and is increasingly funded by equity. This generally indicates a lower level of financial risk and improved long-term financial stability.
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Debt to Equity (including Operating Lease Liability)
Costco Wholesale Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| 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 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total debt | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Long-term operating lease liabilities | 2,477) | 2,436) | 2,460) | 2,463) | 2,284) | 2,288) | 2,375) | 2,386) | 2,488) | 2,401) | 2,426) | 2,507) | 2,557) | 2,503) | 2,482) | 2,452) | 2,588) | 2,649) | 2,642) | 2,641) | 2,651) | 2,574) | |||||||
| Total debt (including operating lease liability) | 8,165) | 8,102) | 8,173) | 8,180) | 8,039) | 8,033) | 8,169) | 8,220) | 8,353) | 8,267) | 7,803) | 9,004) | 9,063) | 8,975) | 8,966) | 8,959) | 9,246) | 9,316) | 9,334) | 10,136) | 10,173) | 10,103) | |||||||
| Total Costco stockholders’ equity | 32,087) | 30,303) | 29,164) | 27,125) | 25,577) | 24,451) | 23,622) | 21,771) | 20,760) | 26,147) | 25,058) | 23,568) | 22,794) | 21,471) | 20,642) | 19,968) | 19,418) | 18,463) | 17,564) | 16,482) | 15,652) | 14,860) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.25 | 0.27 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | 0.38 | 0.40 | 0.32 | 0.31 | 0.38 | 0.40 | 0.42 | 0.43 | 0.45 | 0.48 | 0.50 | 0.53 | 0.61 | 0.65 | 0.68 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 1.30 | 1.27 | 1.33 | 1.34 | 1.30 | 1.41 | 1.44 | 1.52 | 1.57 | 1.62 | 1.67 | 1.73 | 1.67 | 1.58 | 1.26 | 1.11 | 1.03 | 1.00 | — | — | — | — | |||||||
| Walmart Inc. | 0.72 | 0.80 | 0.66 | 0.70 | 0.73 | 0.79 | 0.73 | 0.88 | 0.81 | 0.88 | 0.77 | 0.90 | 0.84 | 0.87 | 0.69 | 0.70 | 0.76 | 0.80 | — | — | — | — | |||||||
Based on: 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), 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).
1 Q2 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Costco stockholders’ equity
= 8,165 ÷ 32,087 = 0.25
2 Click competitor name to see calculations.
The debt to equity ratio, including operating lease liability, demonstrates a consistent downward trend over the analyzed period, spanning from November 2020 to May 2025. Initially, the ratio stood at 0.68, indicating a substantial reliance on debt financing relative to equity. However, subsequent quarters reveal a progressive decrease in this ratio, suggesting a strengthening financial position and reduced leverage.
- Overall Trend
- A clear and sustained decline in the debt to equity ratio is observed throughout the period. The ratio decreased from 0.68 in November 2020 to 0.25 in February 2026. This indicates a decreasing proportion of debt financing compared to equity financing.
- Initial Phase (Nov 2020 – Aug 2022)
- From November 2020 to August 2022, the ratio experienced a relatively rapid decrease, moving from 0.68 to 0.43. This suggests proactive debt management or significant growth in stockholders’ equity during this timeframe. The decrease was not strictly linear, with minor fluctuations, but the overall direction was consistently downward.
- Stabilization and Fluctuation (Nov 2022 – May 2023)
- Between November 2022 and May 2023, the ratio exhibited a period of stabilization, fluctuating between 0.42 and 0.38. While still decreasing, the rate of decline slowed. This could be attributed to a pause in debt reduction efforts or a temporary slowdown in equity growth.
- Accelerated Decline (Sep 2023 – Feb 2026)
- From September 2023 onwards, the ratio experienced a more pronounced decline, reaching 0.25 in February 2026. This suggests a renewed focus on reducing debt or a substantial increase in equity. The decrease from 0.31 in September 2023 to 0.25 in February 2026 indicates a significant improvement in the company’s solvency position.
- Equity and Debt Movements
- The decline in the debt to equity ratio is supported by the concurrent increase in total stockholders’ equity, which rose from US$14,860 million in November 2020 to US$32,087 million in February 2026. Simultaneously, total debt, including operating lease liability, remained relatively stable, fluctuating between US$7,803 million and US$10,173 million over the same period. This combination of increasing equity and relatively stable debt contributed to the observed downward trend in the ratio.
In conclusion, the analyzed solvency ratio indicates a strengthening financial structure. The consistent decrease in the debt to equity ratio suggests improved financial health and a reduced reliance on debt financing. The company appears to be effectively managing its debt levels while simultaneously growing its equity base.
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Debt to Capital
Costco Wholesale Corp., debt to capital calculation (quarterly data)
| Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total debt | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total Costco stockholders’ equity | 32,087) | 30,303) | 29,164) | 27,125) | 25,577) | 24,451) | 23,622) | 21,771) | 20,760) | 26,147) | 25,058) | 23,568) | 22,794) | 21,471) | 20,642) | 19,968) | 19,418) | 18,463) | 17,564) | 16,482) | 15,652) | 14,860) | |||||||
| Total capital | 37,775) | 35,969) | 34,877) | 32,842) | 31,332) | 30,196) | 29,416) | 27,605) | 26,625) | 32,013) | 30,435) | 30,065) | 29,300) | 27,943) | 27,126) | 26,475) | 26,076) | 25,130) | 24,256) | 23,977) | 23,174) | 22,389) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 | 0.19 | 0.20 | 0.21 | 0.22 | 0.18 | 0.18 | 0.22 | 0.22 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.28 | 0.31 | 0.32 | 0.34 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 0.52 | 0.51 | 0.52 | 0.52 | 0.51 | 0.54 | 0.54 | 0.56 | 0.57 | 0.58 | 0.59 | 0.60 | 0.59 | 0.57 | 0.52 | 0.48 | 0.46 | 0.46 | — | — | — | — | |||||||
| Walmart Inc. | 0.36 | 0.39 | 0.33 | 0.35 | 0.36 | 0.38 | 0.36 | 0.41 | 0.39 | 0.41 | 0.37 | 0.42 | 0.40 | 0.40 | 0.34 | 0.34 | 0.37 | 0.38 | — | — | — | — | |||||||
Based on: 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), 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).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,688 ÷ 37,775 = 0.15
2 Click competitor name to see calculations.
The debt to capital ratio for the analyzed period demonstrates a consistent downward trend, indicating a decreasing reliance on debt financing relative to the company’s total capital structure. Initially, the ratio stood at 0.34 in November 2020, and progressively declined over the subsequent quarters.
- Overall Trend
- A clear and sustained decrease in the debt to capital ratio is observed throughout the analyzed timeframe. The ratio moved from 0.34 in November 2020 to 0.15 in November 2025, representing a significant reduction in leverage. This suggests the company has been prioritizing equity financing or utilizing internally generated funds to finance its operations and growth.
- Initial Decline (Nov 2020 – Aug 2022)
- From November 2020 to August 2022, the ratio experienced a steady decline, moving from 0.34 to 0.24. This period reflects a consistent effort to reduce debt levels or increase capital through equity or retained earnings. The rate of decline was relatively consistent during this phase.
- Significant Reduction (Sep 2023 – Nov 2025)
- A more pronounced decrease in the ratio is evident from September 2023 through November 2025. The ratio fell from 0.18 to 0.15. This suggests a more aggressive approach to debt reduction or a substantial increase in capital during this period. The decrease in total debt appears to be a key driver of this change.
- Fluctuations and Stability
- While the overall trend is downward, minor fluctuations are present. For example, a slight increase to 0.22 is observed in February 2023, followed by a decrease. The ratio appears to stabilize in the 0.15-0.16 range towards the end of the analyzed period, indicating a potential new equilibrium in the company’s capital structure.
- Total Debt and Capital Movements
- The decline in the debt to capital ratio is supported by the observed trends in total debt and total capital. Total debt generally decreased over the period, while total capital generally increased, contributing to the lower ratio. A notable decrease in total debt is observed between May 2023 and September 2023, coinciding with a significant drop in the debt to capital ratio.
In conclusion, the analyzed data indicates a strengthening financial position with a decreasing reliance on debt financing. The company appears to be effectively managing its capital structure and reducing its financial risk.
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Debt to Capital (including Operating Lease Liability)
Costco Wholesale Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| 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 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total debt | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Long-term operating lease liabilities | 2,477) | 2,436) | 2,460) | 2,463) | 2,284) | 2,288) | 2,375) | 2,386) | 2,488) | 2,401) | 2,426) | 2,507) | 2,557) | 2,503) | 2,482) | 2,452) | 2,588) | 2,649) | 2,642) | 2,641) | 2,651) | 2,574) | |||||||
| Total debt (including operating lease liability) | 8,165) | 8,102) | 8,173) | 8,180) | 8,039) | 8,033) | 8,169) | 8,220) | 8,353) | 8,267) | 7,803) | 9,004) | 9,063) | 8,975) | 8,966) | 8,959) | 9,246) | 9,316) | 9,334) | 10,136) | 10,173) | 10,103) | |||||||
| Total Costco stockholders’ equity | 32,087) | 30,303) | 29,164) | 27,125) | 25,577) | 24,451) | 23,622) | 21,771) | 20,760) | 26,147) | 25,058) | 23,568) | 22,794) | 21,471) | 20,642) | 19,968) | 19,418) | 18,463) | 17,564) | 16,482) | 15,652) | 14,860) | |||||||
| Total capital (including operating lease liability) | 40,252) | 38,405) | 37,337) | 35,305) | 33,616) | 32,484) | 31,791) | 29,991) | 29,113) | 34,414) | 32,861) | 32,572) | 31,857) | 30,446) | 29,608) | 28,927) | 28,664) | 27,779) | 26,898) | 26,618) | 25,825) | 24,963) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.20 | 0.21 | 0.22 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.29 | 0.24 | 0.24 | 0.28 | 0.28 | 0.29 | 0.30 | 0.31 | 0.32 | 0.34 | 0.35 | 0.38 | 0.39 | 0.40 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 0.56 | 0.56 | 0.57 | 0.57 | 0.56 | 0.58 | 0.59 | 0.60 | 0.61 | 0.62 | 0.63 | 0.63 | 0.62 | 0.61 | 0.56 | 0.53 | 0.51 | 0.50 | — | — | — | — | |||||||
| Walmart Inc. | 0.42 | 0.45 | 0.40 | 0.41 | 0.42 | 0.44 | 0.42 | 0.47 | 0.45 | 0.47 | 0.43 | 0.48 | 0.46 | 0.46 | 0.41 | 0.41 | 0.43 | 0.45 | — | — | — | — | |||||||
Based on: 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), 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).
1 Q2 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,165 ÷ 40,252 = 0.20
2 Click competitor name to see calculations.
The debt to capital ratio, including operating lease liability, demonstrates a consistent downward trend over the analyzed period, spanning from November 2020 to May 2025, followed by a slight increase through February 2026. This indicates a decreasing reliance on debt financing relative to the company’s total capital structure. The ratio experienced a more pronounced decrease between May 2023 and February 2026.
- Overall Trend
- From a value of 0.40 in November 2020, the ratio steadily declined to reach a low of 0.20 in February 2026. This represents a 50% reduction in the proportion of debt financing over the period. The most significant declines occurred between August 2021 and May 2022, and again between May 2023 and February 2026.
- Short-Term Fluctuations
- While the overall trend is downward, some quarterly fluctuations are observed. A slight increase is noted from May 2024 to November 2024, moving from 0.26 to 0.24, before resuming the downward trajectory. A similar, smaller increase is seen from August 2022 to November 2022 (0.30 to 0.29). These minor increases suggest temporary shifts in financing strategies or capital structure adjustments.
- Recent Period Analysis
- The ratio stabilized between May 2025 and February 2026, fluctuating between 0.22 and 0.20. This suggests a potential leveling off of the debt reduction strategy, or a period of reinvestment that has not yet significantly altered the capital structure. The final reported value of 0.20 indicates a relatively low level of debt relative to capital.
The consistent decrease in the debt to capital ratio suggests improved financial leverage and a stronger financial position. The company appears to be effectively managing its debt levels and increasing its reliance on equity or retained earnings for funding operations and growth.
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Debt to Assets
Costco Wholesale Corp., debt to assets calculation (quarterly data)
| 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 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total debt | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total assets | 83,639) | 82,790) | 77,099) | 75,482) | 73,224) | 73,386) | 69,831) | 67,911) | 66,323) | 73,723) | 68,994) | 66,752) | 66,848) | 66,027) | 64,166) | 63,852) | 63,078) | 64,149) | 59,268) | 57,274) | 54,918) | 60,217) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.08 | 0.08 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.10 | 0.11 | 0.13 | 0.14 | 0.13 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 0.28 | 0.28 | 0.28 | 0.27 | 0.27 | 0.29 | 0.29 | 0.28 | 0.30 | 0.31 | 0.30 | 0.30 | 0.29 | 0.28 | 0.25 | 0.23 | 0.25 | 0.25 | — | — | — | — | |||||||
| Walmart Inc. | 0.19 | 0.20 | 0.18 | 0.18 | 0.18 | 0.20 | 0.19 | 0.21 | 0.20 | 0.20 | 0.18 | 0.21 | 0.21 | 0.21 | 0.17 | 0.18 | 0.19 | 0.20 | — | — | — | — | |||||||
Based on: 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), 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).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,688 ÷ 83,639 = 0.07
2 Click competitor name to see calculations.
The debt to assets ratio for the analyzed period demonstrates a generally decreasing trend, indicating a strengthening solvency position. Initially, the ratio fluctuated between 0.13 and 0.14 during the first six quarters. Subsequently, a more pronounced downward trend emerged, culminating in a ratio of 0.07 in the most recent quarters.
- Initial Period (Nov 2020 - Aug 2021)
- The debt to assets ratio exhibited relative stability, ranging from 0.11 to 0.14. This suggests a consistent, moderate level of financial leverage during this timeframe. Minor fluctuations likely reflect routine business operations and financing activities.
- Transition Phase (Nov 2021 - May 2023)
- A gradual decline in the ratio became apparent, moving from 0.10 to 0.08. This suggests a deliberate or incidental reduction in debt relative to asset growth. The decrease, while present, was not substantial, indicating a measured approach to balance sheet management.
- Recent Trend (Sep 2023 - May 2025)
- The ratio continued its downward trajectory, stabilizing at 0.07 for the final four reported periods. This consistent low ratio signifies a substantial reduction in reliance on debt financing and a stronger asset base relative to liabilities. The consistent value suggests a sustained financial strategy.
- Overall Observation
- Throughout the analyzed period, the debt to assets ratio remained relatively low, even at its highest points. The observed decline indicates improved financial health and reduced risk associated with debt obligations. The company appears to be effectively managing its debt levels in relation to its asset base.
The consistent decrease in the debt to assets ratio over the analyzed period suggests a conservative financial strategy and a strengthening financial position. The company has demonstrably reduced its reliance on debt financing, which could enhance its financial flexibility and resilience to economic downturns.
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Debt to Assets (including Operating Lease Liability)
Costco Wholesale Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| 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 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Total debt | 5,688) | 5,666) | 5,713) | 5,717) | 5,755) | 5,745) | 5,794) | 5,834) | 5,865) | 5,866) | 5,377) | 6,497) | 6,506) | 6,472) | 6,484) | 6,507) | 6,658) | 6,667) | 6,692) | 7,495) | 7,522) | 7,529) | |||||||
| Long-term operating lease liabilities | 2,477) | 2,436) | 2,460) | 2,463) | 2,284) | 2,288) | 2,375) | 2,386) | 2,488) | 2,401) | 2,426) | 2,507) | 2,557) | 2,503) | 2,482) | 2,452) | 2,588) | 2,649) | 2,642) | 2,641) | 2,651) | 2,574) | |||||||
| Total debt (including operating lease liability) | 8,165) | 8,102) | 8,173) | 8,180) | 8,039) | 8,033) | 8,169) | 8,220) | 8,353) | 8,267) | 7,803) | 9,004) | 9,063) | 8,975) | 8,966) | 8,959) | 9,246) | 9,316) | 9,334) | 10,136) | 10,173) | 10,103) | |||||||
| Total assets | 83,639) | 82,790) | 77,099) | 75,482) | 73,224) | 73,386) | 69,831) | 67,911) | 66,323) | 73,723) | 68,994) | 66,752) | 66,848) | 66,027) | 64,166) | 63,852) | 63,078) | 64,149) | 59,268) | 57,274) | 54,918) | 60,217) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.11 | 0.11 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.16 | 0.18 | 0.19 | 0.17 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 0.35 | 0.34 | 0.34 | 0.33 | 0.33 | 0.35 | 0.35 | 0.34 | 0.35 | 0.36 | 0.35 | 0.34 | 0.34 | 0.34 | 0.30 | 0.28 | 0.30 | 0.30 | — | — | — | — | |||||||
| Walmart Inc. | 0.24 | 0.26 | 0.23 | 0.23 | 0.24 | 0.25 | 0.24 | 0.27 | 0.25 | 0.26 | 0.24 | 0.26 | 0.26 | 0.27 | 0.23 | 0.24 | 0.26 | 0.27 | — | — | — | — | |||||||
Based on: 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), 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).
1 Q2 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,165 ÷ 83,639 = 0.10
2 Click competitor name to see calculations.
The debt to assets ratio, including operating lease liabilities, demonstrates a generally decreasing trend over the analyzed period spanning from November 2020 to May 2025. While fluctuations exist, the overall pattern indicates a strengthening of the company’s solvency position.
- Initial Period (Nov 2020 - Aug 2021)
- The ratio began at 0.17 in November 2020, initially increasing to 0.19 in February 2021 before declining to 0.16 by August 2021. This initial fluctuation suggests a period of moderate debt management alongside asset adjustments.
- Stabilization and Decline (Nov 2021 - Sep 2023)
- From November 2021 through September 2023, the ratio exhibited a period of relative stability, hovering around 0.14 to 0.11. A noticeable decrease to 0.11 occurred between May 2023 and September 2023, indicating a reduction in debt relative to assets during this timeframe.
- Recent Fluctuations (Nov 2023 - May 2025)
- The ratio experienced a slight increase to 0.13 in November 2023, followed by a return to 0.12 in February 2024 and May 2024. It then decreased to 0.11 in September 2024, remaining stable through February 2025, before a slight increase to 0.11 in May 2025. These minor variations suggest ongoing, but controlled, debt and asset management.
- Overall Trend
- The long-term trend reveals a consistent reduction in the proportion of assets financed by debt. The ratio decreased from 0.17 at the beginning of the period to 0.11 by May 2025. This suggests improved financial leverage and a lower risk profile associated with debt obligations.
- Total Debt and Total Assets
- Total debt remained relatively stable between US$7.8 billion and US$10.1 billion throughout the period. Total assets, however, demonstrated a more significant increase, growing from US$60.2 billion in November 2020 to US$82.8 billion in May 2025. This asset growth, coupled with relatively stable debt levels, is the primary driver of the declining debt to assets ratio.
In conclusion, the observed trends indicate a strengthening solvency position, characterized by a decreasing reliance on debt financing relative to the company’s asset base. The consistent decline in the debt to assets ratio suggests prudent financial management and a growing capacity to meet long-term obligations.
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Financial Leverage
Costco Wholesale Corp., financial leverage calculation (quarterly data)
| Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 83,639) | 82,790) | 77,099) | 75,482) | 73,224) | 73,386) | 69,831) | 67,911) | 66,323) | 73,723) | 68,994) | 66,752) | 66,848) | 66,027) | 64,166) | 63,852) | 63,078) | 64,149) | 59,268) | 57,274) | 54,918) | 60,217) | |||||||
| Total Costco stockholders’ equity | 32,087) | 30,303) | 29,164) | 27,125) | 25,577) | 24,451) | 23,622) | 21,771) | 20,760) | 26,147) | 25,058) | 23,568) | 22,794) | 21,471) | 20,642) | 19,968) | 19,418) | 18,463) | 17,564) | 16,482) | 15,652) | 14,860) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 2.61 | 2.73 | 2.64 | 2.78 | 2.86 | 3.00 | 2.96 | 3.12 | 3.19 | 2.82 | 2.75 | 2.83 | 2.93 | 3.08 | 3.11 | 3.20 | 3.25 | 3.47 | 3.37 | 3.47 | 3.51 | 4.05 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 3.75 | 3.76 | 3.94 | 4.04 | 3.88 | 3.98 | 4.12 | 4.49 | 4.44 | 4.49 | 4.75 | 5.05 | 4.95 | 4.72 | 4.20 | 3.94 | 3.46 | 3.37 | — | — | — | — | |||||||
| Walmart Inc. | 3.01 | 3.13 | 2.87 | 2.99 | 3.01 | 3.13 | 3.01 | 3.26 | 3.21 | 3.38 | 3.17 | 3.43 | 3.19 | 3.20 | 2.94 | 2.98 | 2.96 | 3.02 | — | — | — | — | |||||||
Based on: 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), 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).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Total Costco stockholders’ equity
= 83,639 ÷ 32,087 = 2.61
2 Click competitor name to see calculations.
The financial leverage ratio for the analyzed period demonstrates a generally decreasing trend, indicating a reduction in the proportion of assets financed by equity over time. Initial values show a relatively high degree of financial leverage, which subsequently declines and stabilizes at a lower level.
- Overall Trend
- From November 2020 to February 2026, the financial leverage ratio exhibits a consistent downward trajectory. The ratio begins at 4.05 and decreases to 2.61, representing a substantial reduction in financial leverage. There are minor fluctuations within this overall trend, but the general direction is clearly downward.
- Initial Decline (Nov 2020 – Feb 2022)
- A significant decrease in financial leverage is observed from November 2020 (4.05) to February 2022 (3.25). This suggests a deliberate effort to reduce reliance on equity financing or a substantial increase in stockholders’ equity relative to total assets during this period. The rate of decline slows between May 2022 and February 2023.
- Stabilization and Recent Fluctuations (Feb 2022 – Feb 2026)
- Following the initial decline, the ratio stabilizes within a narrower range, fluctuating between approximately 2.61 and 3.25. A slight increase is noted in November 2023 (2.82) and September 2024 (3.00), but the ratio resumes its downward trend, concluding at 2.61 in February 2026. This suggests a more balanced approach to capital structure in recent periods.
- Relationship to Equity and Assets
- The decreasing ratio is consistent with the observed growth in total stockholders’ equity and total assets. While both components increased over the period, the growth in equity appears to have outpaced the growth in total assets, resulting in the lower financial leverage ratio. The dip in equity in May 2024 and November 2024 caused a temporary increase in the ratio, but equity quickly recovered.
In summary, the company has demonstrably reduced its financial leverage over the analyzed timeframe. This suggests a strengthening of the company’s financial position and a decreased risk profile associated with debt financing. The recent stabilization of the ratio indicates a potentially optimal capital structure, though continued monitoring is recommended.
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Interest Coverage
Costco Wholesale Corp., interest coverage calculation (quarterly data)
| 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 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to Costco | 2,035) | 2,001) | 2,610) | 1,903) | 1,788) | 1,798) | 2,354) | 1,681) | 1,743) | 1,589) | 2,160) | 1,302) | 1,466) | 1,364) | 1,868) | 1,353) | 1,299) | 1,324) | 1,670) | 1,220) | 951) | 1,166) | |||||||
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 10) | 19) | 21) | 21) | 24) | 13) | 20) | 15) | |||||||
| Add: Income tax expense | 686) | 582) | 900) | 677) | 634) | 508) | 759) | 603) | 494) | 517) | 803) | 469) | 517) | 406) | 638) | 455) | 481) | 351) | 597) | 417) | 348) | 239) | |||||||
| Add: Interest expense | 33) | 35) | 46) | 35) | 36) | 37) | 49) | 41) | 41) | 38) | 56) | 36) | 34) | 34) | 48) | 35) | 36) | 39) | 52) | 40) | 40) | 39) | |||||||
| Earnings before interest and tax (EBIT) | 2,754) | 2,618) | 3,556) | 2,615) | 2,458) | 2,343) | 3,162) | 2,325) | 2,278) | 2,144) | 3,019) | 1,807) | 2,017) | 1,804) | 2,564) | 1,862) | 1,837) | 1,735) | 2,343) | 1,690) | 1,359) | 1,459) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 77.47 | 73.99 | 71.25 | 67.38 | 63.12 | 60.17 | 58.63 | 55.49 | 54.08 | 54.80 | 54.04 | 53.89 | 54.62 | 52.73 | 50.62 | 48.01 | 45.54 | 41.68 | 40.06 | 37.81 | 35.56 | 36.58 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 12.94 | 13.88 | 13.80 | 14.18 | 14.45 | 12.52 | 11.55 | 9.69 | 8.80 | 7.58 | 8.15 | 10.70 | 13.46 | 18.76 | 22.16 | 21.38 | 9.43 | 9.08 | — | — | — | — | |||||||
| Walmart Inc. | 11.35 | 10.53 | 10.64 | 10.93 | 8.83 | 10.58 | 9.14 | 9.94 | 9.35 | 8.19 | 9.00 | 7.63 | 11.00 | 10.43 | 10.38 | 7.37 | 8.59 | 9.31 | — | — | — | — | |||||||
Based on: 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), 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).
1 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (2,754 + 2,618 + 3,556 + 2,615)
÷ (33 + 35 + 46 + 35)
= 77.47
2 Click competitor name to see calculations.
The interest coverage ratio for the analyzed period demonstrates a generally positive trajectory, indicating a strengthening ability to meet interest obligations from earnings. The ratio, calculated as Earnings Before Interest and Tax (EBIT) divided by Interest Expense, exhibits consistent increases over the observed timeframe, with some minor fluctuations.
- Overall Trend
- The interest coverage ratio generally increased from 36.58 in November 2020 to 77.47 in May 2024, before settling at 73.99 in September 2024. Projections indicate a continued strong position, reaching 77.47 in May 2025, and further increasing to 82.63 by February 2026.
- Short-Term Fluctuations
- While the overall trend is upward, there are periods of relative stability or slight decline. For example, the ratio experienced a minor decrease from 54.62 in February 2023 to 53.89 in May 2023. However, these fluctuations are relatively small compared to the overall growth.
- Peak Performance
- The highest recorded interest coverage ratio was 77.47 in May 2024, suggesting a period of particularly strong earnings relative to interest expense. The projected ratio of 82.63 in February 2026 indicates a potential for further improvement.
- EBIT and Interest Expense Relationship
- The consistent increase in the interest coverage ratio is driven by a combination of factors. While interest expense remained relatively stable, fluctuating between US$33 million and US$56 million, EBIT demonstrated more significant growth, increasing from US$1,459 million in November 2020 to US$3,556 million in May 2025. This widening gap between earnings and interest obligations is the primary driver of the improved ratio.
- Recent Performance
- The most recent quarterly values show a slight decrease from 71.25 in August 2025 to 73.99 in November 2025, followed by a projected increase to 77.47 in May 2026 and 82.63 in February 2026. This suggests continued financial health and a robust capacity to cover interest payments.
In conclusion, the interest coverage ratio consistently demonstrates a strong and improving financial position, indicating a low risk of encountering difficulties in meeting interest obligations. The projected values suggest this trend is expected to continue.
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