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)
Debt Ratios
Coverage Ratios
Costco Wholesale Corp., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
The solvency profile demonstrates a consistent strengthening of the balance sheet over the analyzed period. There is a sustained downward trend across all primary debt-to-equity and debt-to-capital metrics, indicating a strategic reduction in financial leverage and a decreased reliance on external borrowing to fund operations and growth.
- Debt-to-Equity and Debt-to-Capital Trends
- A significant reduction in the debt-to-equity ratio is observed, declining from 0.36 in November 2021 to 0.17 by August 2026. When operating lease liabilities are included, the ratio follows an identical trajectory, falling from 0.50 to 0.24. Similarly, the debt-to-capital ratio decreased from 0.27 to 0.15, while the version including lease liabilities fell from 0.34 to 0.19. These movements indicate that equity is growing faster than debt, or debt is being retired more aggressively than new capital is being raised.
- Asset-Based Solvency
- Debt-to-asset ratios remained relatively stable but exhibited a gradual decline. The standard debt-to-assets ratio moved from 0.10 to 0.07. Including operating lease liabilities, this ratio decreased from 0.15 to 0.10. This suggests a very low level of asset encumbrance and a high degree of solvency, as a diminishing percentage of total assets is financed through debt.
- Financial Leverage and Interest Coverage
- Financial leverage shows a general downward trend, decreasing from 3.47 to 2.49, despite a temporary spike in February 2024. This reduction reflects a lower multiplier effect on equity and a more conservative capital structure. Most notably, the interest coverage ratio exhibits a powerful upward trend, rising from 41.68 in November 2021 to 85.49 by August 2026. This indicates a substantial increase in the margin of safety for meeting interest obligations, driven by either increasing operating income or decreasing interest expenses.
Overall, the data reflects a transition toward a highly conservative financial position. The simultaneous decrease in leverage ratios and the sharp increase in interest coverage suggest a significant mitigation of solvency risk and an enhanced capacity to withstand economic volatility.
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Debt to Equity
Costco Wholesale Corp., debt to equity calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 2,248) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current portion | 3,914) | 5,670) | 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) | ||||||
| Total debt | 6,162) | 5,670) | 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) | ||||||
| Total Costco stockholders’ equity | 35,803) | 33,509) | 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) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity1 | 0.17 | 0.17 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 1.02 | 1.06 | 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. | 0.52 | 0.55 | 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-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
1 Q4 2026 Calculation
Debt to equity = Total debt ÷ Total Costco stockholders’ equity
= 6,162 ÷ 35,803 = 0.17
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a consistent strengthening over the analyzed period, characterized by a significant reduction in the reliance on borrowed capital relative to shareholders' equity. A sustained downward trajectory in the debt-to-equity ratio indicates an improved financial position and a lower risk profile regarding long-term obligations.
- Debt to Equity Ratio Trend
- The debt-to-equity ratio declined steadily from 0.36 in November 2021 to 0.17 by August 2026. This represents a more than 50% reduction in the ratio, signaling a strategic shift toward a more equity-funded capital structure. Despite a brief increase to 0.28 in February 2024, the ratio resumed its descent, reaching its lowest points in the final quarters of the period.
- Total Debt Dynamics
- Total debt levels remained relatively stable with a general downward bias for much of the period. Initial levels around 6.6 billion USD decreased to a low of 5.37 billion USD in September 2023. While there was a moderate increase toward the end of the period, closing at 6.16 billion USD in August 2026, the overall debt load remained well below the peaks observed in 2021 and 2022.
- Stockholders' Equity Growth
- A robust growth trend is observed in total stockholders' equity, which increased from 18.46 billion USD in November 2021 to 35.80 billion USD by August 2026. A notable contraction occurred in February 2024, where equity dropped from 26.14 billion USD to 20.76 billion USD; however, this was followed by a period of rapid recovery and sustained growth. The substantial increase in equity serves as the primary driver for the improving solvency ratios.
The convergence of stable total debt and aggressively expanding equity has resulted in a highly conservative leverage position. The ability to maintain low debt levels while nearly doubling equity over the observed timeframe suggests strong internal capital generation and a diminished dependence on external financing.
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Debt to Equity (including Operating Lease Liability)
Costco Wholesale Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 2,248) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current portion | 3,914) | 5,670) | 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) | ||||||
| Total debt | 6,162) | 5,670) | 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) | ||||||
| Long-term operating lease liabilities | 2,414) | 2,466) | 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) | ||||||
| Total debt (including operating lease liability) | 8,576) | 8,136) | 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) | ||||||
| Total Costco stockholders’ equity | 35,803) | 33,509) | 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) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.24 | 0.24 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 1.23 | 1.29 | 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. | 0.67 | 0.71 | 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-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
1 Q4 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Costco stockholders’ equity
= 8,576 ÷ 35,803 = 0.24
2 Click competitor name to see calculations.
The solvency profile of the organization demonstrates a consistent strengthening of the balance sheet over the analyzed period. A significant long-term reduction in the debt-to-equity ratio is evident, moving from 0.50 in November 2021 to 0.24 by August 2026, indicating a transition toward a more equity-funded capital structure and reduced financial leverage.
- Total Debt Trends
- Total debt, inclusive of operating lease liabilities, exhibited a general downward trajectory with minor fluctuations. From a peak of 9,316 million USD in November 2021, liabilities decreased to a low of 7,803 million USD in September 2023. While a slight increase occurred toward the end of the period, reaching 8,576 million USD by August 2026, the overall debt levels remained significantly lower than the baseline established in 2021.
- Stockholders' Equity Expansion
- Equity grew substantially, rising from 18,463 million USD in November 2021 to 35,803 million USD by August 2026. This growth was largely linear, with the exception of a notable contraction in February 2024, where equity dropped from 26,147 million USD to 20,760 million USD. Following this event, equity resumed a strong upward trend, nearly doubling the initial 2021 valuation by the end of the period.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio followed a steady decline for the majority of the period, dropping from 0.50 to 0.31 by November 2023. A temporary reversal occurred in February 2024, where the ratio spiked to 0.40 due to the simultaneous decrease in stockholders' equity and stable debt levels. However, this increase was transient; the ratio continued to decline thereafter, reaching a period low of 0.24 in May and August 2026, reflecting a highly conservative solvency position.
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Debt to Capital
Costco Wholesale Corp., debt to capital calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 2,248) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current portion | 3,914) | 5,670) | 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) | ||||||
| Total debt | 6,162) | 5,670) | 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) | ||||||
| Total Costco stockholders’ equity | 35,803) | 33,509) | 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) | ||||||
| Total capital | 41,965) | 39,179) | 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) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital1 | 0.15 | 0.14 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 0.50 | 0.52 | 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. | 0.34 | 0.36 | 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-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
1 Q4 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,162 ÷ 41,965 = 0.15
2 Click competitor name to see calculations.
The solvency profile of the entity exhibits a consistent strengthening of its financial position from November 2021 through August 2026. The primary driver of this improvement is a sustained reduction in the debt-to-capital ratio, which indicates a decreasing reliance on borrowed funds relative to the total capital base.
- Debt to Capital Ratio Trend
- A clear downward trajectory is observed in the debt to capital ratio, which declined from 0.27 in November 2021 to 0.15 by August 2026. The ratio experienced a steady decline through 2022 and 2023, reaching a low of 0.18 in September 2023. While a temporary spike to 0.22 occurred in February 2024 due to a contraction in total capital, the ratio subsequently resumed its descent, reaching a period low of 0.14 in May 2026 before stabilizing at 0.15.
- Total Debt Analysis
- Total debt remained relatively stable between 6.4 billion and 6.6 billion US dollars during the first year of the analyzed period. A notable reduction occurred in September 2023, where debt fell to 5.377 billion US dollars. For the remainder of the period, debt levels fluctuated within a narrower band between 5.6 billion and 5.8 billion US dollars, ending with a slight increase to 6.162 billion US dollars in August 2026.
- Total Capital Expansion
- The total capital base demonstrated significant growth, expanding from 25.13 billion US dollars in November 2021 to 41.965 billion US dollars by August 2026. Despite a sharp, isolated decrease in capital to 26.625 billion US dollars in February 2024, the overall trend remained aggressively positive. This growth in the capital base, occurring alongside stable or declining debt levels, is the fundamental cause of the improved solvency ratios.
- Solvency Insight
- The divergence between the expanding total capital and the controlled total debt levels suggests a strategic shift toward a more equity-heavy capital structure. The reduction of the debt to capital ratio by approximately 12 percentage points over the period reflects a reduced financial risk profile and an increased capacity to absorb future liabilities.
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Debt to Capital (including Operating Lease Liability)
Costco Wholesale Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 2,248) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current portion | 3,914) | 5,670) | 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) | ||||||
| Total debt | 6,162) | 5,670) | 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) | ||||||
| Long-term operating lease liabilities | 2,414) | 2,466) | 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) | ||||||
| Total debt (including operating lease liability) | 8,576) | 8,136) | 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) | ||||||
| Total Costco stockholders’ equity | 35,803) | 33,509) | 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) | ||||||
| Total capital (including operating lease liability) | 44,379) | 41,645) | 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) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.19 | 0.20 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 0.55 | 0.56 | 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. | 0.40 | 0.42 | 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-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
1 Q4 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,576 ÷ 44,379 = 0.19
2 Click competitor name to see calculations.
The solvency profile demonstrates a consistent strengthening of the capital structure over the observed period. A persistent downward trend in the debt-to-capital ratio indicates a strategic reduction in financial leverage and an increased reliance on equity or other non-debt capital components relative to the total capital base.
- Debt to Capital Ratio Trend
- The ratio exhibited a steady decline from 0.34 in November 2021 to 0.19 by August 2026. This trajectory represents a significant reduction in the proportion of debt used to finance the organization's operations, signaling a lower risk profile and improved long-term financial stability.
- Total Capital Expansion
- Total capital, including operating lease liabilities, grew substantially from 27,779 million to 44,379 million. This consistent expansion served as the primary driver for the declining leverage ratio, as the growth in total capital far outpaced any changes in total debt.
- Total Debt Stability
- Total debt remained relatively contained, starting at 9,316 million and ending at 8,576 million. Although a period of contraction occurred between May 2023 and September 2023, where debt reached a low of 7,803 million, the overall levels remained stable. The absence of significant new debt accumulation amidst a growing capital base further reinforced the improving solvency trend.
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Debt to Assets
Costco Wholesale Corp., debt to assets calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 2,248) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current portion | 3,914) | 5,670) | 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) | ||||||
| Total debt | 6,162) | 5,670) | 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) | ||||||
| Total assets | 89,045) | 86,430) | 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) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets1 | 0.07 | 0.07 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 0.28 | 0.28 | 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. | 0.18 | 0.18 | 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-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
1 Q4 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,162 ÷ 89,045 = 0.07
2 Click competitor name to see calculations.
The solvency profile exhibits a sustained improvement over the analyzed period, characterized by a strategic reduction in relative leverage and a consistent expansion of the asset base.
- Total Debt Trajectory
- Debt levels remained relatively stable between November 2021 and May 2023, fluctuating around the $6.5 billion mark. A notable reduction occurred in September 2023, with debt decreasing to $5.38 billion. Following this dip, debt levels stabilized within a range of $5.6 billion to $5.9 billion through May 2026, before ending the period with a moderate increase to $6.16 billion in August 2026.
- Asset Base Expansion
- A consistent upward trend in total assets is observed, increasing from $64.15 billion in November 2021 to $89.05 billion by August 2026. This growth represents a significant strengthening of the balance sheet, providing a larger capital base to support operational activities and liabilities.
- Debt to Assets Ratio Analysis
- The debt to assets ratio demonstrates a gradual decline, shifting from a consistent 0.10 between November 2021 and May 2023 to 0.08 starting in September 2023. From August 2025 through August 2026, the ratio further decreased and stabilized at 0.07. This downward trend indicates that the growth of assets has significantly outpaced the accumulation of debt, resulting in reduced financial leverage and an enhanced solvency position.
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Debt to Assets (including Operating Lease Liability)
Costco Wholesale Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 2,248) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current portion | 3,914) | 5,670) | 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) | ||||||
| Total debt | 6,162) | 5,670) | 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) | ||||||
| Long-term operating lease liabilities | 2,414) | 2,466) | 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) | ||||||
| Total debt (including operating lease liability) | 8,576) | 8,136) | 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) | ||||||
| Total assets | 89,045) | 86,430) | 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) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.10 | 0.09 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 0.33 | 0.33 | 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 | 0.24 | 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-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
1 Q4 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,576 ÷ 89,045 = 0.10
2 Click competitor name to see calculations.
The analysis reveals a consistent improvement in the solvency profile over the observed period, characterized by a steady reduction in the proportion of assets financed through debt and operating lease liabilities.
- Total Debt Trends
- A general downward trajectory in total debt is observed from November 2021, where debt stood at 9,316 million US$, reaching a minimum of 7,803 million US$ in September 2023. Following this low, debt levels remained relatively stable, fluctuating between 8,033 million US$ and 8,576 million US$ through August 2026. This indicates a disciplined approach to leverage management.
- Total Asset Expansion
- Total assets demonstrated significant growth, increasing from 64,149 million US$ in November 2021 to 89,045 million US$ by August 2026. Although a temporary contraction occurred around February 2024, the overall trend remained positive, reflecting an expansion of the balance sheet over the multi-year period.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio declined progressively from 0.15 in late 2021 to a low of 0.09 in May 2026, before settling at 0.10 in August 2026. This compression is the result of the simultaneous decrease in total debt and the substantial increase in total assets. The downward trend suggests a strengthening of the solvency position and a reduced reliance on external liabilities to fund the asset base.
Overall, the financial data indicates an enhancing solvency posture, as the entity has successfully increased its asset base while maintaining or reducing its total debt obligations.
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Financial Leverage
Costco Wholesale Corp., financial leverage calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Total assets | 89,045) | 86,430) | 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) | ||||||
| Total Costco stockholders’ equity | 35,803) | 33,509) | 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) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Financial leverage1 | 2.49 | 2.58 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 3.68 | 3.87 | 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. | 2.86 | 3.00 | 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-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
1 Q4 2026 Calculation
Financial leverage = Total assets ÷ Total Costco stockholders’ equity
= 89,045 ÷ 35,803 = 2.49
2 Click competitor name to see calculations.
The financial position of the company is characterized by a steady expansion of the asset base accompanied by a significant increase in stockholders' equity, resulting in an overall improvement in solvency and a reduction in financial leverage over the analyzed period.
- Asset and Equity Expansion
- Total assets increased from 64,149 million USD in November 2021 to 89,045 million USD by August 2026. Parallel to this growth, total stockholders' equity nearly doubled, rising from 18,463 million USD to 35,803 million USD. This simultaneous growth indicates a sustained increase in the company's resource base and a strengthening of its internal funding capacity.
- Financial Leverage Trend
- The financial leverage ratio exhibited a primary downward trajectory, declining from a peak of 3.47 in November 2021 to 2.49 by August 2026. This consistent reduction suggests a strategic shift toward a more conservative capital structure, reducing the reliance on debt relative to equity to finance the company's assets.
- Analysis of Period Volatility
- A temporary reversal in the leverage trend occurred in February 2024, when the ratio spiked to 3.19. This increase coincided with a sharp contraction in stockholders' equity, which fell to 20,760 million USD from 26,147 million USD in the preceding quarter. Following this event, the ratio resumed its downward trend, reaching its lowest point of 2.49 by the end of the observed period.
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Interest Coverage
Costco Wholesale Corp., interest coverage calculation (quarterly data)
| Aug 30, 2026 | May 10, 2026 | Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net income attributable to Costco | 2,998) | 2,192) | 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) | ||||||
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 10) | 19) | 21) | 21) | ||||||
| Add: Income tax expense | 1,011) | 746) | 686) | 582) | 900) | 677) | 634) | 508) | 759) | 603) | 494) | 517) | 803) | 469) | 517) | 406) | 638) | 455) | 481) | 351) | ||||||
| Add: Interest expense | 45) | 32) | 33) | 35) | 46) | 35) | 36) | 37) | 49) | 41) | 41) | 38) | 56) | 36) | 34) | 34) | 48) | 35) | 36) | 39) | ||||||
| Earnings before interest and tax (EBIT) | 4,054) | 2,970) | 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) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Interest coverage1 | 85.49 | 81.49 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 11.71 | 12.13 | 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. | 11.53 | 11.85 | 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-K (reporting date: 2026-08-30), 10-Q (reporting date: 2026-05-10), 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21).
1 Q4 2026 Calculation
Interest coverage
= (EBITQ4 2026
+ EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026)
÷ (Interest expenseQ4 2026
+ Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026)
= (4,054 + 2,970 + 2,754 + 2,618)
÷ (45 + 32 + 33 + 35)
= 85.49
2 Click competitor name to see calculations.
The analysis of solvency metrics reveals a significant and consistent improvement in the capacity to service interest obligations over the period from November 2021 to August 2026. The interest coverage ratio demonstrates a strong upward trajectory, more than doubling from 41.68 to 85.49, indicating a substantial increase in the margin of safety regarding debt obligations.
- Earnings Before Interest and Tax (EBIT) Trends
- A sustained growth pattern is observed in EBIT, which rose from 1,735 million USD in November 2021 to 4,054 million USD by August 2026. The growth is characterized by periodic peaks occurring typically in the third quarter of the calendar year, with notable highs in September 2023, September 2024, and August 2026. This growth indicates a strengthening operational profitability that provides an expanding base for debt coverage.
- Interest Expense Stability
- Interest expenses remained relatively stable throughout the analyzed timeframe, fluctuating within a narrow range between 32 million USD and 56 million USD. Despite minor variances, there is no evidence of a significant increase in borrowing costs or debt load that would offset the gains in operational earnings.
- Interest Coverage Ratio Progression
- The interest coverage ratio exhibits a nearly linear increase, moving from the low 40s in late 2021 to over 85 by mid-2026. This progression is driven by the divergence between rapidly increasing EBIT and stagnant interest expenses. The steady climb from 54.62 in February 2023 to 85.49 in August 2026 suggests a highly conservative solvency position and an exceptional ability to meet all interest payments from operating profits.
In summary, the financial data indicates a robust strengthening of solvency. The combination of expanding operating income and disciplined interest cost management has resulted in a solvency profile characterized by extremely low default risk and high financial flexibility.
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