Microsoft Excel LibreOffice Calc

Long-term (Investment) Activity Analysis

Difficulty: Beginner


Ratios (Summary)

Costco Wholesale Corp., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
Net fixed asset turnover 6.95 6.81 7.38 7.43 7.41 7.49
Total asset turnover 3.47 3.50 3.40 3.34 3.40 3.58
Equity turnover 11.71 9.61 10.71 8.96 9.50 7.85

Source: Based on data from Costco Wholesale Corp. Annual Reports

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Costco Wholesale Corp.'s net fixed asset turnover deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Costco Wholesale Corp.'s total asset turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity. Costco Wholesale Corp.'s equity turnover deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Net Fixed Asset Turnover

Costco Wholesale Corp., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
Selected Financial Data (USD $ in millions)
Net sales 126,172  116,073  113,666  110,212  102,870  97,062 
Net property and equipment 18,161  17,043  15,401  14,830  13,881  12,961 
Ratio
Net fixed asset turnover1 6.95 6.81 7.38 7.43 7.41 7.49
Benchmarks
Net Fixed Asset Turnover, Competitors
Amazon.com Inc. 3.64 4.67 4.90 5.24 6.80
eBay Inc. 5.99 5.92 5.53 6.17 5.81
Home Depot Inc. 4.32 3.99 3.66 3.38 3.11
Lowe's Cos. Inc. 3.26 3.02 2.81 2.56 2.35
Netflix Inc. 36.61 35.27 39.09 36.73 32.74
Target Corp. 2.82 2.93 2.80 2.31 2.35
TJX Cos. Inc. 7.32 7.48 7.52 7.63 8.03
Walmart Inc. 4.22 4.11 4.13 4.01 3.99
Net Fixed Asset Turnover, Sector
General Retailers 4.21 4.25 4.20 4.00 3.96
Net Fixed Asset Turnover, Industry
Consumer Services 3.90 3.89 3.99 3.80 3.70

Source: Based on data from Costco Wholesale Corp. Annual Reports

2017 Calculations

1 Net fixed asset turnover = Net sales ÷ Net property and equipment
= 126,172 ÷ 18,161 = 6.95

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Costco Wholesale Corp.'s net fixed asset turnover deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Total Asset Turnover

Costco Wholesale Corp., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
Selected Financial Data (USD $ in millions)
Net sales 126,172  116,073  113,666  110,212  102,870  97,062 
Total assets 36,347  33,163  33,440  33,024  30,283  27,140 
Ratio
Total asset turnover1 3.47 3.50 3.40 3.34 3.40 3.58
Benchmarks
Total Asset Turnover, Competitors
Amazon.com Inc. 1.35 1.63 1.64 1.63 1.85
eBay Inc. 0.37 0.38 0.48 0.40 0.39
Home Depot Inc. 2.20 2.08 2.08 1.95 1.82
Lowe's Cos. Inc. 1.89 1.89 1.77 1.63 1.55
Netflix Inc. 0.61 0.65 0.66 0.78 0.81
Target Corp. 1.86 1.83 1.75 1.63 1.49
TJX Cos. Inc. 2.58 2.69 2.61 2.69 2.72
Walmart Inc. 2.42 2.40 2.37 2.31 2.29
Total Asset Turnover, Sector
General Retailers 1.98 2.09 2.11 1.96 1.96
Total Asset Turnover, Industry
Consumer Services 1.28 1.27 1.37 1.37 1.35

Source: Based on data from Costco Wholesale Corp. Annual Reports

2017 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 126,172 ÷ 36,347 = 3.47

Ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Costco Wholesale Corp.'s total asset turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

Equity Turnover

Costco Wholesale Corp., equity turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
Selected Financial Data (USD $ in millions)
Net sales 126,172  116,073  113,666  110,212  102,870  97,062 
Total Costco stockholders' equity 10,778  12,079  10,617  12,303  10,833  12,361 
Ratio
Equity turnover1 11.71 9.61 10.71 8.96 9.50 7.85
Benchmarks
Equity Turnover, Competitors
Amazon.com Inc. 6.42 7.05 8.00 8.28 7.64
eBay Inc. 1.19 0.85 1.31 0.90 0.68
Home Depot Inc. 21.83 14.02 8.92 6.29 4.21
Lowe's Cos. Inc. 10.11 7.72 5.64 4.51 3.65
Netflix Inc. 3.26 3.30 3.05 2.96 3.28
Target Corp. 6.34 5.69 5.19 4.47 4.35
TJX Cos. Inc. 7.36 7.18 6.82 6.48 7.06
Walmart Inc. 6.19 5.94 5.92 6.20 6.11
Equity Turnover, Sector
General Retailers 6.93 6.40 6.32 5.59 5.10
Equity Turnover, Industry
Consumer Services 4.10 3.95 4.11 3.78 3.49

Source: Based on data from Costco Wholesale Corp. Annual Reports

2017 Calculations

1 Equity turnover = Net sales ÷ Total Costco stockholders' equity
= 126,172 ÷ 10,778 = 11.71

Ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity. Costco Wholesale Corp.'s equity turnover deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.