Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Costco Wholesale Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Costco Wholesale Corp. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Costco Wholesale Corp. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Costco Wholesale Corp. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Costco Wholesale Corp. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Costco Wholesale Corp. ROA improved from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Costco Wholesale Corp., gross profit margin 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) | |||||||
| Gross margin | 25,124) | 23,348) | 21,368) | 18,281) | 16,465) | 15,282) | |
| Net sales | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 10.57% | 10.48% | 11.13% | 11.20% | 11.02% | 11.04% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Target Corp. | 23.57% | 28.34% | 28.38% | 28.87% | 28.39% | — | |
| Walmart Inc. | 23.46% | 24.44% | 24.30% | 24.10% | 24.50% | — | |
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 25,124 ÷ 237,710 = 10.57%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Costco Wholesale Corp. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Operating Profit Margin
Costco Wholesale Corp., operating profit margin 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) | |||||||
| Operating income | 8,114) | 7,793) | 6,708) | 5,435) | 4,737) | 4,480) | |
| Net sales | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 3.41% | 3.50% | 3.49% | 3.33% | 3.17% | 3.24% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Target Corp. | 3.58% | 8.55% | 7.08% | 6.04% | 5.52% | — | |
| Walmart Inc. | 3.37% | 4.57% | 4.06% | 3.96% | 4.30% | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 3.41% | 4.77% | 4.26% | 4.03% | 4.20% | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | 7.38% | 8.47% | 8.40% | 8.12% | 7.40% | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 8,114 ÷ 237,710 = 3.41%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Costco Wholesale Corp. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Net Profit Margin
Costco Wholesale Corp., net profit margin 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 income attributable to Costco | 6,292) | 5,844) | 5,007) | 4,002) | 3,659) | 3,134) | |
| Net sales | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 2.65% | 2.62% | 2.61% | 2.45% | 2.45% | 2.26% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Target Corp. | 2.58% | 6.64% | 4.73% | 4.25% | 3.95% | — | |
| Walmart Inc. | 1.93% | 2.41% | 2.43% | 2.86% | 1.31% | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 2.18% | 2.96% | 2.73% | 2.92% | 1.81% | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | 5.55% | 5.87% | 5.64% | 5.88% | 3.76% | — | |
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 profit margin = 100 × Net income attributable to Costco ÷ Net sales
= 100 × 6,292 ÷ 237,710 = 2.65%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Costco Wholesale Corp. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Costco Wholesale Corp., ROE 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 income attributable to Costco | 6,292) | 5,844) | 5,007) | 4,002) | 3,659) | 3,134) | |
| Total Costco stockholders’ equity | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | 12,799) | |
| Profitability Ratio | |||||||
| ROE1 | 25.11% | 28.31% | 28.51% | 21.89% | 24.00% | 24.49% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Target Corp. | 24.75% | 54.15% | 30.25% | 27.73% | 26.00% | — | |
| Walmart Inc. | 15.23% | 16.42% | 16.69% | 19.93% | 9.20% | — | |
| ROE, Sector | |||||||
| Consumer Staples Distribution & Retail | 18.37% | 22.67% | 20.26% | 21.15% | 13.40% | — | |
| ROE, Industry | |||||||
| Consumer Staples | 29.82% | 29.95% | 27.27% | 27.08% | 16.85% | — | |
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
ROE = 100 × Net income attributable to Costco ÷ Total Costco stockholders’ equity
= 100 × 6,292 ÷ 25,058 = 25.11%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Costco Wholesale Corp. ROE deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Assets (ROA)
Costco Wholesale Corp., ROA 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 income attributable to Costco | 6,292) | 5,844) | 5,007) | 4,002) | 3,659) | 3,134) | |
| Total assets | 68,994) | 64,166) | 59,268) | 55,556) | 45,400) | 40,830) | |
| Profitability Ratio | |||||||
| ROA1 | 9.12% | 9.11% | 8.45% | 7.20% | 8.06% | 7.68% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Target Corp. | 5.21% | 12.91% | 8.52% | 7.67% | 7.11% | — | |
| Walmart Inc. | 4.80% | 5.58% | 5.35% | 6.29% | 3.04% | — | |
| ROA, Sector | |||||||
| Consumer Staples Distribution & Retail | 5.68% | 7.29% | 6.30% | 6.62% | 4.34% | — | |
| ROA, Industry | |||||||
| Consumer Staples | 8.59% | 8.81% | 7.91% | 7.73% | 5.14% | — | |
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
ROA = 100 × Net income attributable to Costco ÷ Total assets
= 100 × 6,292 ÷ 68,994 = 9.12%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Costco Wholesale Corp. ROA improved from 2021 to 2022 and from 2022 to 2023. |