Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Costco Wholesale Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Costco Wholesale Corp. net fixed asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Costco Wholesale Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Costco Wholesale Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Costco Wholesale Corp. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover
Costco Wholesale Corp., net fixed asset turnover calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Property and equipment, net, including finance lease right-of-use assets | 28,009) | 26,266) | 24,492) | 22,399) | 21,241) | 20,014) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 8.49 | 8.48 | 7.84 | 7.29 | 7.03 | 6.92 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Target Corp. | 3.41 | 3.71 | 3.44 | 2.93 | 2.92 | — | |
| Walmart Inc. | 5.73 | 5.74 | 5.77 | 4.74 | 4.58 | — | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | 5.76 | 5.84 | 5.69 | 4.80 | 4.64 | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Staples | 5.24 | 5.30 | 5.14 | 4.44 | 4.34 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Net fixed asset turnover = Net sales ÷ Property and equipment, net, including finance lease right-of-use assets
= 237,710 ÷ 28,009 = 8.49
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Costco Wholesale Corp. net fixed asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Costco Wholesale Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Property and equipment, net, including finance lease right-of-use assets | 28,009) | 26,266) | 24,492) | 22,399) | 21,241) | 20,014) | |
| Operating lease right-of-use assets | 2,713) | 2,774) | 2,890) | 2,788) | —) | —) | |
| Property and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset) | 30,722) | 29,040) | 27,382) | 25,187) | 21,241) | 20,014) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.74 | 7.67 | 7.01 | 6.48 | 7.03 | 6.92 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Target Corp. | 3.15 | 3.40 | 3.17 | 2.70 | 2.71 | — | |
| Walmart Inc. | 5.08 | 5.04 | 5.05 | 4.09 | 4.58 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Staples Distribution & Retail | 5.17 | 5.19 | 5.05 | 4.21 | 4.58 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Staples | 4.75 | 4.77 | 4.62 | 3.96 | 4.24 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset)
= 237,710 ÷ 30,722 = 7.74
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Costco Wholesale Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
Costco Wholesale Corp., total asset turnover calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Total assets | 68,994) | 64,166) | 59,268) | 55,556) | 45,400) | 40,830) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 3.45 | 3.47 | 3.24 | 2.94 | 3.29 | 3.39 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Target Corp. | 2.02 | 1.94 | 1.80 | 1.80 | 1.80 | — | |
| Walmart Inc. | 2.49 | 2.32 | 2.20 | 2.20 | 2.33 | — | |
| Total Asset Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | 2.60 | 2.47 | 2.31 | 2.27 | 2.40 | — | |
| Total Asset Turnover, Industry | |||||||
| Consumer Staples | 1.55 | 1.50 | 1.40 | 1.31 | 1.37 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 237,710 ÷ 68,994 = 3.45
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Costco Wholesale Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Equity Turnover
Costco Wholesale Corp., equity turnover calculation, comparison to benchmarks
| Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Total Costco stockholders’ equity | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | 12,799) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 9.49 | 10.79 | 10.93 | 8.93 | 9.80 | 10.82 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Target Corp. | 9.58 | 8.16 | 6.40 | 6.52 | 6.59 | — | |
| Walmart Inc. | 7.90 | 6.82 | 6.86 | 6.96 | 7.04 | — | |
| Equity Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | 8.42 | 7.67 | 7.44 | 7.26 | 7.41 | — | |
| Equity Turnover, Industry | |||||||
| Consumer Staples | 5.38 | 5.11 | 4.84 | 4.60 | 4.48 | — | |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
1 2023 Calculation
Equity turnover = Net sales ÷ Total Costco stockholders’ equity
= 237,710 ÷ 25,058 = 9.49
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Costco Wholesale Corp. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |