Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22).
The long-term investment activity ratios demonstrate generally positive performance over the analyzed period, with some indications of stabilization and recent slight declines. Overall, the company appears to be effectively utilizing its assets to generate revenue, though recent quarters suggest a potential shift in this trend.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a consistent upward trend from November 2020 through August 2022, increasing from 7.60 to 9.04. This indicates improving efficiency in generating sales from fixed assets. Following this peak, the ratio stabilizes, fluctuating between 8.87 and 9.02 for several quarters. More recently, a slight downward trend is observed, with the ratio decreasing to 8.34 in the latest period. This suggests a potential decrease in the efficiency of fixed asset utilization.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also demonstrates an increasing trend from 6.75 in November 2020 to 8.12 in August 2022. The inclusion of operating lease obligations and right-of-use assets results in lower values compared to the standard ratio, reflecting the increased asset base. The ratio then plateaus, remaining relatively stable around 8.00 for several quarters before experiencing a gradual decline to 7.71 in the most recent period, mirroring the trend observed in the standard net fixed asset turnover.
- Total Asset Turnover
- The total asset turnover ratio shows a notable increase from 2.81 in November 2020 to a peak of 3.47 in August 2022. This signifies an enhanced ability to generate sales from all assets. The ratio then experiences a slight decrease, fluctuating around 3.40 for several quarters, before declining to 3.36 in the latest period. While still relatively high, this recent decrease warrants monitoring.
- Equity Turnover
- The equity turnover ratio generally declines over the observed period, starting at 11.40 in November 2020 and decreasing to 8.75 in the latest period. This indicates that the company is generating less revenue for each dollar of equity. A significant spike to 11.76 is observed in February 2023, followed by a return to the downward trend. This suggests a potential shift in capital structure or profitability impacting the relationship between revenue and equity.
In summary, the company demonstrated increasing asset utilization efficiency through August 2022. However, recent quarters indicate a stabilization and slight decline in these ratios, particularly in net fixed asset turnover and total asset turnover, alongside a consistent decline in equity turnover. These trends suggest a potential need for further investigation to understand the underlying causes and their implications for future performance.
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Net Fixed Asset Turnover
Costco Wholesale Corp., net fixed asset turnover calculation (quarterly data)
| Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | 68,242) | 65,978) | 84,432) | 61,965) | 62,530) | 60,985) | 78,185) | 57,392) | 57,331) | 56,717) | 77,430) | 52,604) | 54,239) | 53,437) | 70,764) | 51,612) | 50,937) | 49,417) | 61,441) | 44,376) | 43,888) | 42,347) | |||||||
| Property and equipment, net | 33,645) | 32,616) | 31,909) | 30,582) | 29,809) | 29,336) | 29,032) | 28,062) | 27,601) | 27,168) | 26,684) | 25,931) | 25,724) | 25,144) | 24,646) | 24,143) | 24,052) | 23,887) | 23,492) | 23,177) | 22,531) | 22,288) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 8.34 | 8.43 | 8.46 | 8.62 | 8.69 | 8.65 | 8.60 | 8.87 | 8.84 | 8.87 | 8.91 | 8.91 | 8.94 | 9.02 | 9.04 | 8.84 | 8.57 | 8.34 | 8.18 | 7.89 | 7.77 | 7.60 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 3.15 | 3.19 | 3.23 | 3.27 | 3.24 | 3.22 | 3.25 | 3.22 | 3.28 | 3.37 | 3.46 | 3.52 | 3.62 | 3.73 | 3.76 | 3.70 | 3.68 | 3.66 | — | — | — | — | |||||||
| Walmart Inc. | 5.22 | 5.33 | 5.35 | 5.44 | 5.48 | 5.53 | 5.51 | 5.59 | 5.67 | 5.74 | 5.73 | 5.82 | 5.79 | 5.75 | 5.74 | 5.88 | 5.87 | 5.88 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22).
1 Q2 2026 Calculation
Net fixed asset turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Property and equipment, net
= (68,242 + 65,978 + 84,432 + 61,965)
÷ 33,645 = 8.34
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a generally increasing trend over the observed period, with some fluctuations. Initially, the ratio demonstrates consistent growth from 7.60 in November 2020 to a peak of 9.04 in August 2022. Following this peak, the ratio experiences a slight decline, stabilizing around the 8.87-9.02 range through November 2022. A more pronounced downward trend is then observed, decreasing to 8.34 in May 2024. The ratio shows a minor recovery in subsequent quarters, reaching 8.69 in February 2025, before declining again to 8.34 in May 2025. The latest reported value, in February 2026, is 8.34.
- Overall Trend
- The overall trend indicates efficient utilization of fixed assets to generate sales. The initial increase suggests improving operational efficiency or a shift towards a less capital-intensive sales strategy. The recent decline, however, warrants further investigation to determine the underlying causes.
- Peak Performance
- The period between May 2021 and August 2022 represents peak performance in terms of net fixed asset turnover. This suggests a period of strong sales growth relative to the investment in property and equipment. The ratio consistently exceeded 8.8 during this time.
- Recent Decline
- The decline observed from August 2022 through February 2026 is a notable development. This could be attributed to several factors, including increased investment in fixed assets without a corresponding increase in sales, a slowdown in sales growth, or a combination of both. The consistent decline from 9.04 to 8.34 suggests a persistent issue rather than a temporary fluctuation.
- Quarterly Volatility
- While the overall trend is discernible, there is some quarterly volatility in the ratio. For example, the ratio decreased from 9.04 in August 2022 to 9.02 in November 2022, then to 8.94 in February 2023. This suggests that short-term factors can influence the ratio, but the longer-term trend remains the dominant pattern.
In conclusion, while the company has historically demonstrated strong efficiency in utilizing its fixed assets, the recent downward trend in the net fixed asset turnover ratio requires attention. Further analysis is recommended to understand the drivers behind this decline and to assess its potential impact on future performance.
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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 (quarterly data)
| Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | 68,242) | 65,978) | 84,432) | 61,965) | 62,530) | 60,985) | 78,185) | 57,392) | 57,331) | 56,717) | 77,430) | 52,604) | 54,239) | 53,437) | 70,764) | 51,612) | 50,937) | 49,417) | 61,441) | 44,376) | 43,888) | 42,347) | |||||||
| Property and equipment, net | 33,645) | 32,616) | 31,909) | 30,582) | 29,809) | 29,336) | 29,032) | 28,062) | 27,601) | 27,168) | 26,684) | 25,931) | 25,724) | 25,144) | 24,646) | 24,143) | 24,052) | 23,887) | 23,492) | 23,177) | 22,531) | 22,288) | |||||||
| Operating lease right-of-use assets | 2,759) | 2,730) | 2,725) | 2,718) | 2,531) | 2,539) | 2,617) | 2,643) | 2,740) | 2,672) | 2,713) | 2,806) | 2,859) | 2,787) | 2,774) | 2,731) | 2,840) | 2,903) | 2,890) | 2,875) | 2,887) | 2,785) | |||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 36,404) | 35,346) | 34,634) | 33,300) | 32,340) | 31,875) | 31,649) | 30,705) | 30,341) | 29,840) | 29,397) | 28,737) | 28,583) | 27,931) | 27,420) | 26,874) | 26,892) | 26,790) | 26,382) | 26,052) | 25,418) | 25,073) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.71 | 7.78 | 7.79 | 7.92 | 8.01 | 7.97 | 7.89 | 8.11 | 8.04 | 8.08 | 8.09 | 8.04 | 8.05 | 8.12 | 8.12 | 7.94 | 7.67 | 7.43 | 7.28 | 7.02 | 6.88 | 6.75 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 2.84 | 2.87 | 2.90 | 2.95 | 2.93 | 2.91 | 2.95 | 2.95 | 3.02 | 3.12 | 3.19 | 3.24 | 3.33 | 3.42 | 3.45 | 3.39 | 3.37 | 3.36 | — | — | — | — | |||||||
| Walmart Inc. | 4.72 | 4.82 | 4.83 | 4.89 | 4.93 | 4.96 | 4.93 | 4.99 | 5.04 | 5.09 | 5.08 | 5.15 | 5.09 | 5.04 | 5.04 | 5.14 | 5.13 | 5.14 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22).
1 Q2 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (68,242 + 65,978 + 84,432 + 61,965)
÷ 36,404 = 7.71
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using property and equipment net of accumulated depreciation and including operating lease right-of-use assets, demonstrates a generally increasing trend over the observed period, with some stabilization and slight decline towards the end of the timeframe. Initial values indicate a ratio of 6.75, which progressively increased to a peak of 8.12 before exhibiting a modest decrease.
- Overall Trend
- From November 2020 through August 2022, the ratio consistently increased, suggesting improving efficiency in utilizing fixed assets to generate sales. This indicates that the company was becoming more effective at converting its investment in property, plant, and equipment into revenue. The rate of increase slowed between May 2022 and August 2022, suggesting diminishing returns from further asset utilization at that time.
- Stabilization and Recent Decline
- Following the peak of 8.12 in August 2022, the ratio experienced a period of relative stability, fluctuating between 8.04 and 8.12 for several quarters. However, from September 2023 onwards, a slight downward trend is observed, with the ratio decreasing from 8.09 to 7.71 in February 2026. This suggests a potential decrease in the efficiency of asset utilization in more recent periods.
- Quarterly Fluctuations
- The ratio exhibits some quarterly variability. For example, a notable increase occurred between February 2021 (6.88) and May 2021 (7.02). Similarly, a significant jump is seen between May 2022 (7.94) and August 2022 (8.12). These fluctuations likely correlate with seasonal sales patterns and the timing of asset investments. The largest quarterly change occurred between May 2021 and August 2021, with an increase of 0.26.
- Long-Term Perspective
- Over the entire period, the ratio increased from 6.75 to 7.71, representing an overall improvement in fixed asset turnover. However, the recent decline warrants monitoring to determine if it represents a temporary fluctuation or the beginning of a more sustained trend. The ratio remains relatively high, indicating efficient asset management compared to many industry peers, but the recent trend suggests potential areas for further investigation.
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Total Asset Turnover
Costco Wholesale Corp., total asset turnover calculation (quarterly data)
| Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | 68,242) | 65,978) | 84,432) | 61,965) | 62,530) | 60,985) | 78,185) | 57,392) | 57,331) | 56,717) | 77,430) | 52,604) | 54,239) | 53,437) | 70,764) | 51,612) | 50,937) | 49,417) | 61,441) | 44,376) | 43,888) | 42,347) | |||||||
| Total assets | 83,639) | 82,790) | 77,099) | 75,482) | 73,224) | 73,386) | 69,831) | 67,911) | 66,323) | 73,723) | 68,994) | 66,752) | 66,848) | 66,027) | 64,166) | 63,852) | 63,078) | 64,149) | 59,268) | 57,274) | 54,918) | 60,217) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | 3.36 | 3.32 | 3.50 | 3.49 | 3.54 | 3.46 | 3.57 | 3.66 | 3.68 | 3.27 | 3.45 | 3.46 | 3.44 | 3.43 | 3.47 | 3.34 | 3.27 | 3.10 | 3.24 | 3.19 | 3.19 | 2.81 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 1.83 | 1.88 | 1.84 | 1.84 | 1.92 | 1.93 | 1.94 | 1.90 | 2.03 | 2.10 | 2.05 | 1.95 | 2.06 | 2.10 | 1.97 | 1.90 | 1.95 | 1.94 | — | — | — | — | |||||||
| Walmart Inc. | 2.53 | 2.59 | 2.59 | 2.53 | 2.59 | 2.56 | 2.55 | 2.44 | 2.45 | 2.52 | 2.49 | 2.40 | 2.36 | 2.32 | 2.32 | 2.32 | 2.35 | 2.36 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22).
1 Q2 2026 Calculation
Total asset turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Total assets
= (68,242 + 65,978 + 84,432 + 61,965)
÷ 83,639 = 3.36
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally stable pattern with moderate fluctuations over the observed period. Initially, the ratio increased from 2.81 in November 2020 to 3.19 in February 2021, and remained at 3.19 in May 2021. A slight increase to 3.24 was noted in August 2021, followed by a decrease to 3.10 in November 2021.
Subsequent quarters saw an upward trend, peaking at 3.68 in February 2024. This was followed by a slight decline to 3.66 in May 2024, and a further decrease to 3.57 in September 2024. The ratio then experienced a more pronounced decline to 3.32 in September 2025, before a minor recovery to 3.36 in February 2026.
- Overall Trend
- The ratio demonstrates a general tendency to remain within the 3.10 to 3.68 range, indicating consistent efficiency in utilizing assets to generate sales. The peak in February 2024 suggests a period of particularly effective asset management. The recent decline from the peak warrants further investigation to determine the underlying causes.
- Short-Term Fluctuations
- Quarterly variations are present, likely influenced by seasonal sales patterns and inventory management practices. The significant increase in net sales during the August quarters (2021, 2022, 2024, and 2025) generally corresponds with increases in the total asset turnover ratio, suggesting a strong correlation between sales growth and asset utilization.
- Long-Term Stability
- Despite short-term fluctuations, the ratio has remained relatively stable over the entire period, indicating a consistent business model and operational efficiency. The absence of any dramatic shifts suggests that the company has maintained a consistent approach to asset deployment and sales generation.
The observed fluctuations in the total asset turnover ratio appear to be closely linked to changes in net sales. Further analysis, incorporating industry benchmarks and competitor data, would provide a more comprehensive understanding of the company’s asset utilization performance.
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Equity Turnover
Costco Wholesale Corp., equity turnover calculation (quarterly data)
| Feb 15, 2026 | Nov 23, 2025 | Aug 31, 2025 | May 11, 2025 | Feb 16, 2025 | Nov 24, 2024 | Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | 68,242) | 65,978) | 84,432) | 61,965) | 62,530) | 60,985) | 78,185) | 57,392) | 57,331) | 56,717) | 77,430) | 52,604) | 54,239) | 53,437) | 70,764) | 51,612) | 50,937) | 49,417) | 61,441) | 44,376) | 43,888) | 42,347) | |||||||
| Total Costco stockholders’ equity | 32,087) | 30,303) | 29,164) | 27,125) | 25,577) | 24,451) | 23,622) | 21,771) | 20,760) | 26,147) | 25,058) | 23,568) | 22,794) | 21,471) | 20,642) | 19,968) | 19,418) | 18,463) | 17,564) | 16,482) | 15,652) | 14,860) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | 8.75 | 9.07 | 9.25 | 9.72 | 10.13 | 10.38 | 10.57 | 11.43 | 11.76 | 9.22 | 9.49 | 9.80 | 10.09 | 10.56 | 10.79 | 10.69 | 10.62 | 10.78 | 10.93 | 11.10 | 11.18 | 11.40 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Target Corp. | 6.85 | 7.08 | 7.27 | 7.42 | 7.44 | 7.70 | 8.00 | 8.54 | 9.01 | 9.42 | 9.72 | 9.87 | 10.18 | 9.93 | 8.26 | 7.49 | 6.75 | 6.56 | — | — | — | — | |||||||
| Walmart Inc. | 7.62 | 8.10 | 7.41 | 7.58 | 7.81 | 8.02 | 7.66 | 7.97 | 7.86 | 8.52 | 7.90 | 8.23 | 7.51 | 7.42 | 6.82 | 6.89 | 6.98 | 7.13 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2026-02-15), 10-Q (reporting date: 2025-11-23), 10-K (reporting date: 2025-08-31), 10-Q (reporting date: 2025-05-11), 10-Q (reporting date: 2025-02-16), 10-Q (reporting date: 2024-11-24), 10-K (reporting date: 2024-09-01), 10-Q (reporting date: 2024-05-12), 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22).
1 Q2 2026 Calculation
Equity turnover
= (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
÷ Total Costco stockholders’ equity
= (68,242 + 65,978 + 84,432 + 61,965)
÷ 32,087 = 8.75
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally declining trend, punctuated by periods of relative stability and a notable increase in late 2023. Initially, the ratio fluctuated around 11.40 to 10.62 from November 2020 through August 2022, indicating a consistent level of sales generated per dollar of equity. A more pronounced downward trend began in November 2022, continuing through May 2025, with the ratio decreasing from 10.09 to 9.07. A subsequent increase is observed from May 2025 to February 2026, though the ratio remains below the levels seen in the earlier part of the analyzed period.
- Overall Trend
- The overarching pattern reveals a decrease in the efficiency with which equity is being used to generate sales. While sales generally increased over the period, the rate of equity turnover diminished, suggesting a growing equity base relative to sales.
- Initial Stability (Nov 2020 – Aug 2022)
- From November 2020 to August 2022, the equity turnover ratio exhibited relative stability, ranging between approximately 10.62 and 11.40. This suggests a consistent relationship between net sales and total stockholders’ equity during this timeframe. Minor fluctuations within this range did not indicate a significant shift in operational efficiency.
- Downward Trend (Nov 2022 – May 2025)
- Beginning in November 2022, a clear downward trend emerged. The ratio declined from 10.09 to 9.07 by May 2025. This decrease could be attributed to several factors, including a faster growth rate in equity compared to net sales, or potentially, a shift in financial strategy involving increased equity financing.
- Recent Fluctuations (May 2025 – Feb 2026)
- The period from May 2025 to February 2026 shows a slight recovery, with the ratio increasing from 9.07 to 8.75. However, this increase is modest and does not reverse the overall downward trend. The ratio remains at a lower level than observed in the earlier periods, indicating that the efficiency of equity utilization has not fully recovered.
- Notable Increase (Nov 2023 - Feb 2024)
- A significant increase in the equity turnover ratio is observed between November 2023 and February 2024, jumping from 9.22 to 11.76. This spike suggests a period of exceptionally efficient equity utilization, potentially driven by a surge in sales relative to equity or a temporary reduction in the equity base. However, this increase was not sustained, as the ratio decreased in subsequent quarters.
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