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-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).
- Debt to Equity Ratio
- The debt to equity ratio demonstrates a consistent downward trend over the analyzed periods, decreasing from 0.51 in late 2020 to 0.20 by mid-2025. A slight increase is noted around early 2024 (0.33), but the overall trend reflects a reduction in reliance on debt relative to equity.
- Debt to Equity Ratio (Including Operating Lease Liability)
- When considering operating lease liabilities, the debt to equity ratio also declines from 0.69 to 0.28 across the period. Similar to the standard ratio, there is a minor upward spike around early 2024 but the general pattern indicates deleveraging over time.
- Debt to Capital Ratio
- The debt to capital ratio decreases steadily from 0.34 to 0.17, signaling a declining proportion of debt in the company's capital structure. This points towards strengthening equity or a reduction in overall debt levels.
- Debt to Capital Ratio (Including Operating Lease Liability)
- This ratio mirrors the trend found in the conventional debt to capital ratio but at slightly higher levels, moving from 0.41 to 0.22. There is a modest increase around early 2024, yet the downward trajectory reestablishes shortly after.
- Debt to Assets Ratio
- The company’s debt relative to its assets remains relatively low and stable, decreasing marginally from 0.13 to 0.08. This indicates a conservative approach toward leveraging assets with debt.
- Debt to Assets Ratio (Including Operating Lease Liability)
- Including operating lease liabilities, this ratio follows a similar but slightly elevated pattern, starting at 0.17 and gently declining to 0.11. Stability is observed with minor fluctuations.
- Financial Leverage
- Financial leverage shows a somewhat volatile trend, declining from 4.05 to a low around 2.64 by mid-2025. Some fluctuations occur, particularly around early 2024, but overall leverage decreases, suggesting a reduction in asset multiplier effects.
- Interest Coverage Ratio
- The interest coverage ratio displays a strong and steady increase from 36.58 to 71.25 over the course of the periods, indicating improving ability to meet interest obligations from earnings. The steady rise is a positive sign of growing operating profitability relative to interest expenses.
Debt Ratios
Coverage Ratios
Debt to Equity
Costco Wholesale Corp., debt to equity calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 75) | 178) | 98) | 97) | 103) | 1,077) | 1,080) | 1,080) | 1,081) | —) | 76) | 71) | 73) | 77) | —) | 799) | 799) | 92) | 95) | 96) | ||||||
| Long-term debt, excluding current portion | 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 | 5,788) | 5,895) | 5,853) | 5,842) | 5,897) | 6,911) | 6,945) | 6,946) | 6,458) | 6,497) | 6,582) | 6,543) | 6,557) | 6,584) | 6,658) | 7,466) | 7,491) | 7,587) | 7,617) | 7,625) | ||||||
| Total Costco stockholders’ equity | 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 | 0.20 | 0.22 | 0.23 | 0.24 | 0.25 | 0.32 | 0.33 | 0.27 | 0.26 | 0.28 | 0.29 | 0.30 | 0.32 | 0.33 | 0.34 | 0.40 | 0.43 | 0.46 | 0.49 | 0.51 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 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 | 0.88 | 0.95 | 1.14 | 1.28 | ||||||
| Walmart Inc. | 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 | 0.60 | 0.62 | 0.69 | 0.85 | ||||||
Based on: 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 Q4 2025 Calculation
Debt to equity = Total debt ÷ Total Costco stockholders’ equity
= 5,788 ÷ 29,164 = 0.20
2 Click competitor name to see calculations.
- Total debt
- The total debt level shows a gradual decline over the analyzed periods. Starting at approximately 7,625 million US dollars, debt decreases steadily with minor fluctuations, reaching a low around 5,788 million US dollars in the final period. This downward trend suggests active debt management and a reduction in leverage over time.
- Total Costco stockholders’ equity
- Stockholders’ equity exhibits a consistent upward trajectory throughout the periods. Beginning at roughly 14,860 million US dollars, equity increases steadily, with some periods showing notable growth acceleration. By the end, equity reaches approximately 29,164 million US dollars, implying strong retained earnings and capital accumulation.
- Debt to equity ratio
- The debt to equity ratio reflects improving financial leverage. From an initial ratio of 0.51, it steadily declines over time, reaching 0.20 in the final reported period. This pattern indicates a reduction in reliance on debt financing relative to equity, enhancing the firm's solvency position and lowering financial risk.
Debt to Equity (including Operating Lease Liability)
Costco Wholesale Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 75) | 178) | 98) | 97) | 103) | 1,077) | 1,080) | 1,080) | 1,081) | —) | 76) | 71) | 73) | 77) | —) | 799) | 799) | 92) | 95) | 96) | ||||||
| Long-term debt, excluding current portion | 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 | 5,788) | 5,895) | 5,853) | 5,842) | 5,897) | 6,911) | 6,945) | 6,946) | 6,458) | 6,497) | 6,582) | 6,543) | 6,557) | 6,584) | 6,658) | 7,466) | 7,491) | 7,587) | 7,617) | 7,625) | ||||||
| Long-term operating lease liabilities | 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) | 8,248) | 8,358) | 8,137) | 8,130) | 8,272) | 9,297) | 9,433) | 9,347) | 8,884) | 9,004) | 9,139) | 9,046) | 9,039) | 9,036) | 9,246) | 10,115) | 10,133) | 10,228) | 10,268) | 10,199) | ||||||
| Total Costco stockholders’ equity | 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 | 0.28 | 0.31 | 0.32 | 0.33 | 0.35 | 0.43 | 0.45 | 0.36 | 0.35 | 0.38 | 0.40 | 0.42 | 0.44 | 0.45 | 0.48 | 0.55 | 0.58 | 0.62 | 0.66 | 0.69 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 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 | 1.03 | 1.11 | 1.31 | 1.48 | ||||||
| Walmart Inc. | 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 | 0.78 | 0.84 | 0.92 | 1.11 | ||||||
Based on: 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 Q4 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Costco stockholders’ equity
= 8,248 ÷ 29,164 = 0.28
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- Over the analyzed periods, total debt exhibited a general downward trend. Beginning at approximately $10.2 billion, the debt level decreased steadily through most quarters, reaching a low near $8.1 billion by late 2024 and mid-2025. Minor fluctuations occurred, including slight increases around early to mid-2024, but the overall pattern points to a gradual reduction in debt obligations over time.
- Total Costco Stockholders’ Equity
- Stockholders’ equity demonstrated consistent growth across the quarters. Starting around $14.9 billion, equity increased almost continuously to about $29.2 billion by mid-2025. Notably, there was a temporary decline or slower growth phase around early 2024, where equity dipped closer to $20.7 billion, but resumed its upward trajectory thereafter. This pattern indicates strengthening capital base and retained earnings accumulation over the period.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio displayed a marked improvement in the company’s financial leverage position. From an initial ratio near 0.69, the ratio declined steadily, reflecting reduced debt relative to equity. By mid-2025, the ratio dropped below 0.30, reaching approximately 0.28. A slight rise was observed around early 2024, coinciding with the temporary equity decrease and minor debt increase but the longer-term trend underscores enhanced balance sheet strength and lower leverage.
Debt to Capital
Costco Wholesale Corp., debt to capital calculation (quarterly data)
| Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 75) | 178) | 98) | 97) | 103) | 1,077) | 1,080) | 1,080) | 1,081) | —) | 76) | 71) | 73) | 77) | —) | 799) | 799) | 92) | 95) | 96) | ||||||
| Long-term debt, excluding current portion | 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 | 5,788) | 5,895) | 5,853) | 5,842) | 5,897) | 6,911) | 6,945) | 6,946) | 6,458) | 6,497) | 6,582) | 6,543) | 6,557) | 6,584) | 6,658) | 7,466) | 7,491) | 7,587) | 7,617) | 7,625) | ||||||
| Total Costco stockholders’ equity | 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 | 34,952) | 33,020) | 31,430) | 30,293) | 29,519) | 28,682) | 27,705) | 33,093) | 31,516) | 30,065) | 29,376) | 28,014) | 27,199) | 26,552) | 26,076) | 25,929) | 25,055) | 24,069) | 23,269) | 22,485) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital1 | 0.17 | 0.18 | 0.19 | 0.19 | 0.20 | 0.24 | 0.25 | 0.21 | 0.20 | 0.22 | 0.22 | 0.23 | 0.24 | 0.25 | 0.26 | 0.29 | 0.30 | 0.32 | 0.33 | 0.34 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 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 | 0.47 | 0.49 | 0.53 | 0.56 | ||||||
| Walmart Inc. | 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 | 0.38 | 0.38 | 0.41 | 0.46 | ||||||
Based on: 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 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,788 ÷ 34,952 = 0.17
2 Click competitor name to see calculations.
The analysis of the financial data reveals several key trends related to the company's capital structure and debt management over multiple quarters.
- Total Debt
- The total debt exhibits a generally declining trend from November 2020 through August 2023, decreasing from approximately $7,625 million to around $6,458 million. Post this period, there is a brief increase seen around November 2023 and February 2024, where debt rises near $6,946 million before decreasing again. From May 2024 onward, the total debt shows a consistent downward tendency, reaching approximately $5,788 million by August 2025. This overall reduction suggests an active effort to deleverage or reduce financial liabilities over the timeline.
- Total Capital
- Total capital shows a steady upward trend throughout most of the periods, rising from around $22,485 million in November 2020 to near $33,093 million in September 2023. However, there is an unusual dip during the November 2023 and February 2024 quarters, falling back to close to $27,705 million. After this dip, total capital resumes its increasing trajectory, reaching approximately $34,952 million by August 2025. This pattern may indicate fluctuations related to equity infusions, retained earnings, or changes in debt levels influencing the overall capital.
- Debt to Capital Ratio
- The debt to capital ratio displays a clear declining trend over the entire period. Starting at about 0.34 in late 2020, the ratio steadily falls to around 0.20 by September 2023. Despite a slight increase to approximately 0.25 in the subsequent quarters of November 2023 and February 2024, the ratio continues decreasing thereafter, reaching approximately 0.17 by August 2025. This downward pattern signals a reduction in leverage and possibly improved financial stability, reflecting a proportionally smaller reliance on debt within the capital structure.
Overall, the data portrays a strategic focus on reducing debt and strengthening the capital base, despite some short-term fluctuations. The declining debt to capital ratio especially underscores a gradual shift towards a more conservative financing approach. Such movements could be beneficial for the company’s creditworthiness and financial flexibility going forward.
Debt to Capital (including Operating Lease Liability)
Costco Wholesale Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 75) | 178) | 98) | 97) | 103) | 1,077) | 1,080) | 1,080) | 1,081) | —) | 76) | 71) | 73) | 77) | —) | 799) | 799) | 92) | 95) | 96) | ||||||
| Long-term debt, excluding current portion | 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 | 5,788) | 5,895) | 5,853) | 5,842) | 5,897) | 6,911) | 6,945) | 6,946) | 6,458) | 6,497) | 6,582) | 6,543) | 6,557) | 6,584) | 6,658) | 7,466) | 7,491) | 7,587) | 7,617) | 7,625) | ||||||
| Long-term operating lease liabilities | 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) | 8,248) | 8,358) | 8,137) | 8,130) | 8,272) | 9,297) | 9,433) | 9,347) | 8,884) | 9,004) | 9,139) | 9,046) | 9,039) | 9,036) | 9,246) | 10,115) | 10,133) | 10,228) | 10,268) | 10,199) | ||||||
| Total Costco stockholders’ equity | 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) | 37,412) | 35,483) | 33,714) | 32,581) | 31,894) | 31,068) | 30,193) | 35,494) | 33,942) | 32,572) | 31,933) | 30,517) | 29,681) | 29,004) | 28,664) | 28,578) | 27,697) | 26,710) | 25,920) | 25,059) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.22 | 0.24 | 0.24 | 0.25 | 0.26 | 0.30 | 0.31 | 0.26 | 0.26 | 0.28 | 0.29 | 0.30 | 0.30 | 0.31 | 0.32 | 0.35 | 0.37 | 0.38 | 0.40 | 0.41 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 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 | 0.51 | 0.53 | 0.57 | 0.60 | ||||||
| Walmart Inc. | 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 | 0.44 | 0.46 | 0.48 | 0.53 | ||||||
Based on: 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 Q4 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,248 ÷ 37,412 = 0.22
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's capital structure over the observed periods. The key metrics evaluated include total debt (inclusive of operating lease liability), total capital (also inclusive of operating lease liability), and the resulting debt-to-capital ratio.
- Total Debt (including operating lease liability)
-
The total debt remained relatively stable during the initial set of quarters, fluctuating slightly around the 10,000 million US dollar mark from late 2020 through early 2022. From that point forward, a gradual downward trend is observable, with debt reducing to approximately 8,130 million by late 2024, and stabilizing around 8,200 million toward mid-2025. This declining trend suggests a concerted effort to manage and reduce leverage over the medium term.
- Total Capital (including operating lease liability)
-
Total capital exhibited a consistent upward trajectory from late 2020 through early 2024, growing from roughly 25,000 million US dollars to a peak approaching 35,500 million by late 2023. A mild contraction is seen during early 2024 to mid-2024, after which total capital resumed growth through 2025, culminating near 37,400 million. This pattern implies expanding investment or asset base, or accumulation of equity capital in the long term, punctuated by a brief period of correction or consolidation.
- Debt to Capital Ratio (including operating lease liability)
-
The debt-to-capital ratio demonstrates a clear downward trend throughout the entire timeframe. Starting at approximately 0.41, the ratio steadily declines, reaching lows around 0.22 by mid-2025. This decreasing leverage ratio underscores an improving capital structure with reduced dependency on debt financing relative to total capital. Notably, there is a slight uptick in the ratio in early 2024, which coincides with the temporary decrease in total capital, before continuing its decline.
Overall, the data indicate a strategic tendency toward deleveraging and strengthening the capital base over the period observed. The combination of declining total debt and increasing total capital results in an improved debt-to-capital ratio, which reflects enhanced financial stability and potentially greater capacity for future investment or resilience to economic fluctuations.
Debt to Assets
Costco Wholesale Corp., debt to assets calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 75) | 178) | 98) | 97) | 103) | 1,077) | 1,080) | 1,080) | 1,081) | —) | 76) | 71) | 73) | 77) | —) | 799) | 799) | 92) | 95) | 96) | ||||||
| Long-term debt, excluding current portion | 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 | 5,788) | 5,895) | 5,853) | 5,842) | 5,897) | 6,911) | 6,945) | 6,946) | 6,458) | 6,497) | 6,582) | 6,543) | 6,557) | 6,584) | 6,658) | 7,466) | 7,491) | 7,587) | 7,617) | 7,625) | ||||||
| Total assets | 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 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.10 | 0.10 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.13 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 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 | 0.25 | 0.25 | 0.30 | 0.32 | ||||||
| Walmart Inc. | 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 | 0.19 | 0.20 | 0.22 | 0.25 | ||||||
Based on: 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 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,788 ÷ 77,099 = 0.08
2 Click competitor name to see calculations.
The analysis of the financial data over the reported periods reveals several noteworthy trends in the company’s balance sheet structure, particularly regarding total debt, total assets, and the debt-to-assets ratio.
- Total Debt
- Total debt showed a gradual decline from November 2020 to August 2022, decreasing from approximately $7.6 billion to about $6.5 billion. Following this period, a slight increase occurred towards November 2023, reaching a peak close to $6.9 billion. Afterward, from late 2023 through August 2025, total debt resumed a downward trajectory, falling to roughly $5.8 billion. Overall, total debt decreased modestly during the entire timeframe, indicating controlled debt management and possible repayments.
- Total Assets
- Total assets displayed more variability and growth compared to debt. Initial figures hovered around $60.2 billion at the end of 2020. The asset base experienced fluctuations but generally increased, peaking near $73.7 billion in November 2024, followed by a stable to slightly increasing trend reaching about $77.1 billion by August 2025. This growth suggests ongoing asset accumulation, potentially via investments or operational expansions.
- Debt to Assets Ratio
- The debt-to-assets ratio demonstrated a clear declining trend. Starting at approximately 0.13 in late 2020, the ratio steadily decreased, reaching as low as 0.08 by the end of the observed period in 2025. This ratio stabilization at a lower level reflects an improved capital structure with relatively less reliance on debt financing compared to asset holdings. The consistent decline in debt relative to assets indicates enhanced financial strength and possibly a more conservative approach to leverage.
In summary, the financial data points to a company that has managed to reduce its total debt moderately while expanding its asset base over the reported intervals. The resulting decrease in the debt-to-assets ratio highlights a trend toward greater financial stability and a lower leverage profile, signaling positive creditworthiness and capacity to withstand financial stress.
Debt to Assets (including Operating Lease Liability)
Costco Wholesale Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current portion of long-term debt | 75) | 178) | 98) | 97) | 103) | 1,077) | 1,080) | 1,080) | 1,081) | —) | 76) | 71) | 73) | 77) | —) | 799) | 799) | 92) | 95) | 96) | ||||||
| Long-term debt, excluding current portion | 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 | 5,788) | 5,895) | 5,853) | 5,842) | 5,897) | 6,911) | 6,945) | 6,946) | 6,458) | 6,497) | 6,582) | 6,543) | 6,557) | 6,584) | 6,658) | 7,466) | 7,491) | 7,587) | 7,617) | 7,625) | ||||||
| Long-term operating lease liabilities | 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) | 8,248) | 8,358) | 8,137) | 8,130) | 8,272) | 9,297) | 9,433) | 9,347) | 8,884) | 9,004) | 9,139) | 9,046) | 9,039) | 9,036) | 9,246) | 10,115) | 10,133) | 10,228) | 10,268) | 10,199) | ||||||
| Total assets | 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 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.14 | 0.14 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.17 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Target Corp. | 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 | 0.29 | 0.29 | 0.34 | 0.37 | ||||||
| Walmart Inc. | 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 | 0.25 | 0.27 | 0.29 | 0.32 | ||||||
Based on: 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 Q4 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,248 ÷ 77,099 = 0.11
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company’s leverage and asset base over the quarters analyzed.
- Total debt (including operating lease liability)
-
The total debt level shows a gradual overall decline from approximately $10.2 billion to around $8.2 billion during the period. Initially, debt remained relatively stable in the range of $9.0 billion to $10.3 billion, with occasional minor fluctuations. Starting around early 2024, a more pronounced decline in debt is observable, dropping to approximately $8.2 billion by the later periods. This indicates a strategic effort to reduce overall indebtedness over time.
- Total assets
-
Total assets exhibit a generally rising trend, increasing from about $60.2 billion initially to nearly $77.1 billion in the most recent period. There are some fluctuations within the timeline, notably a peak around late 2023 at approximately $73.7 billion followed by a minor drop, but the overall trajectory remains upward. This suggests asset growth and possible reinvestment or expansion activities over the quarters.
- Debt to assets ratio (including operating lease liability)
-
The debt-to-assets ratio steadily declines from 0.17 to approximately 0.11 over the examined periods, indicating improved financial leverage. The initial ratio peaks near 0.19 but consistently decreases thereafter, reflecting that the company's growth in assets outpaces its debt levels. This downward trend in leverage implies strengthening of the balance sheet and reduced financial risk.
In summary, the company demonstrates a clear pattern of decreasing leverage, supported by stable or slightly declining debt coupled with growth in assets. The reduction in the debt-to-assets ratio points to a more conservative capital structure and a strengthening financial position across the periods reviewed.
Financial Leverage
Costco Wholesale Corp., financial leverage calculation (quarterly data)
| Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Total assets | 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 | 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 | 2.64 | 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. | 3.94 | 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 | 3.55 | 3.80 | 3.82 | 4.01 | ||||||
| Walmart Inc. | 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 | 3.12 | 3.08 | 3.15 | 3.41 | ||||||
Based on: 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 Q4 2025 Calculation
Financial leverage = Total assets ÷ Total Costco stockholders’ equity
= 77,099 ÷ 29,164 = 2.64
2 Click competitor name to see calculations.
The analysis of the available quarterly financial data reveals several distinct trends and patterns regarding the company's asset base, equity position, and use of financial leverage over the reported periods.
- Total Assets
-
Total assets exhibited a generally upward trajectory from the initial measurement at approximately 60.2 billion USD, reaching a peak near 73.7 billion USD around late 2024, before continuing to rise modestly towards the end of the series at about 77.1 billion USD. The data indicates sustained asset growth with occasional fluctuations, such as a noticeable dip in early 2024 followed by recovery and further increases. This trend reflects ongoing expansion and asset accumulation over the analyzed intervals.
- Total Stockholders' Equity
-
Stockholders’ equity demonstrated a steady increase throughout the periods, starting from roughly 14.9 billion USD and advancing to approximately 29.2 billion USD by mid-2025. A temporary decline was observed around early 2024, where equity decreased from 26.1 billion USD to about 20.8 billion USD, followed by a rebound and continued growth thereafter. This pattern suggests resilience in the company's equity base despite short-term pressures, potentially influenced by operational results, dividends, share repurchases, or other equity-affecting activities.
- Financial Leverage
-
The financial leverage ratio exhibited a clear downward trend from a high of approximately 4.05 in late 2020 to about 2.64 by mid-2025. This steady decline indicates a gradual reduction in the use of debt relative to equity, implying a strengthening capital structure with increased reliance on equity financing. Temporary minor increases and fluctuations occurred, notably around early 2024, but the overall progression is towards lower leverage, suggesting improved financial stability and potentially reduced risk.
In summary, the company’s financial position over the examined quarters reflects growth in asset size and equity capital, accompanied by a measured deleveraging strategy. The trends point to a strengthening balance sheet with expanding financial resources and a cautious approach to leverage, contributing to enhanced financial robustness over time.
Interest Coverage
Costco Wholesale Corp., interest coverage calculation (quarterly data)
| 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 | 2,610) | 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 | 900) | 677) | 634) | 508) | 759) | 603) | 494) | 517) | 803) | 469) | 517) | 406) | 638) | 455) | 481) | 351) | 597) | 417) | 348) | 239) | ||||||
| Add: Interest expense | 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) | 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 | 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. | 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 | 6.68 | 5.92 | 10.51 | 8.47 | ||||||
| Walmart Inc. | 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 | 9.88 | 11.98 | 10.50 | 9.08 | ||||||
Based on: 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 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= (3,556 + 2,615 + 2,458 + 2,343)
÷ (46 + 35 + 36 + 37)
= 71.25
2 Click competitor name to see calculations.
- Earnings Before Interest and Tax (EBIT)
- The EBIT values exhibit a generally increasing trend over the periods analyzed, starting at 1,459 million US dollars and rising to 3,556 million US dollars by the last reported date. There are observable fluctuations within this upward trajectory, with some quarters showing sharper increases, notably around August 2021 and September 2023. Despite occasional dips, the company demonstrates growing operational profitability over time.
- Interest Expense
- Interest expense remains relatively stable across the periods, fluctuating within a narrow range between 34 and 56 million US dollars. There is no pronounced upward or downward trend, indicating consistency in the level of interest cost borne by the company, despite the increase in EBIT. Slight increases in particular quarters suggest minor variations in borrowing costs or debt levels, but these do not materially affect the overall stability.
- Interest Coverage Ratio
- The interest coverage ratio shows a clear and steady increasing trend, beginning at approximately 36.58 and reaching 71.25 by the final period. This substantial improvement reflects the company's enhanced ability to meet interest obligations from operating earnings. The consistent rise indicates strengthening financial health, with EBIT growth outpacing interest expenses, contributing to improved creditworthiness.
- Overall Insights
- The combination of rising EBIT and stable interest expenses results in significantly improved interest coverage, highlighting increased operational efficiency and stronger earnings capacity. This pattern suggests effective management of both operating performance and financing costs. The growing EBIT coupled with controlled interest expenses positions the company favorably in terms of financial stability and risk mitigation concerning debt servicing.