Costco Wholesale Corp. (NASDAQ:COST)

Gross Profit Margin

The gross profit margin exhibits a gradual declining trend from 11.32% in November 2020 to a low of approximately 10.39% in November 2022. Thereafter, a modest recovery phase is observed, with the margin steadily increasing to about 11.12% by August 2025. This indicates initial compression in direct profitability followed by a slow improvement in cost management or pricing power.

Operating Profit Margin

The operating profit margin shows fluctuating but generally stable behavior around the mid-3% range. Starting at 3.43% in November 2020, it dips slightly and remains somewhat stable between 3.36% and 3.5% through 2022. From 2023 onwards, a gradual upward trend emerges reaching 3.85% in August 2025, implying enhancements in operational efficiency or control over operating expenses.

Net Profit Margin

The net profit margin demonstrates consistent growth over the observed periods, moving from 2.55% in November 2020 to 3.00% in August 2025. This steady increase reflects improving profitability after all expenses, taxes, and costs, possibly due to stronger revenue growth, cost containment, or favorable tax impacts.

Return on Equity (ROE)

Return on equity displays a downward trend from a high of 29.1% in November 2020 to below 25% by September 2023. This decline indicates a reduction in equity profitability during this time span. Subsequently, a significant rebound occurs with ROE peaking above 32% in early 2024, followed by a gradual decrease toward 27.77% by August 2025, suggesting fluctuations in leverage, net income, or equity base affecting shareholder returns.

Return on Assets (ROA)

Return on assets shows positive progression throughout the timeline, rising from 7.18% in November 2020 to a peak near 10.56% in early 2024, before slightly moderating to about 10.5% in August 2025. This upward trend indicates improving asset utilization and operational effectiveness in generating profits from company assets over the period.

Summary

The financial margins reveal a company adapting strategically to operational and market conditions with early margin pressures giving way to gradual recovery and improvement. Profitability ratios including net margin and ROA show consistent enhancement, signaling heightened efficiency and profitability. The volatility in ROE suggests dynamic changes in equity management or earnings generation capacity over time. Overall, the firm reflects resilience with a tendency toward improving profitability metrics in the most recent periods.

The analysis of the quarterly financial data reveals several noteworthy trends in the company's performance over the observed periods.

Net Sales

Net sales exhibit a pattern of cyclical growth within each fiscal year followed by sharp increases, particularly noticeable in quarters ending in late summer. The values tend to rise significantly in the third quarter compared to the first two quarters, with peaks observed in August or September of each year. Despite some fluctuations, there is an overall upward trend in net sales, indicating consistent revenue growth over the long term.

Gross Margin

Gross margin in absolute terms reflects a similar cyclical pattern to net sales, with pronounced increases primarily in the late summer quarters. Peaks in gross margin consistently occur during the same quarters as net sales, reinforcing the seasonality of the business operations. Over time, gross margin amounts show an increase, particularly in the most recent periods, suggesting an improvement in the total dollar value of profits before operating costs.

Gross Profit Margin Percentage

The gross profit margin percentage demonstrates a gradually increasing trend over the analyzed quarters. Starting from around 11.3% at the beginning of the period, the margin dips slightly mid-way but then proceeds to improve steadily, reaching above 11.1% towards the most recent quarters. This improvement in percentage terms signifies enhanced efficiency in managing the cost of goods sold relative to net sales, which could be indicative of better cost controls, favorable product mixes, or pricing power.

Overall, the data suggests steady growth in revenue and profitability, supported by seasonal sales surges and improving gross profit margins. The upward trajectory in both absolute gross margin and percentage margins highlights potential strengthening operational efficiency and financial health over time.

The analysis of key financial metrics over the reported quarters reveals consistent growth patterns, periodic fluctuations, and improving profitability measures.

Operating Income

Operating income exhibits a general upward trajectory from the earliest period to the most recent one. Initial figures around 1,430 million US dollars increase to a peak of approximately 3,341 million US dollars by the final period. Although some quarters display decreases or stabilization — particularly notable dips or plateaus near mid-dates — the overall trend is growth, with higher earnings in recent quarters indicating improved operational performance.

Net Sales

Net sales show a pattern of steady increase across the examined quarters. Starting near 42,347 million US dollars, sales generally rise at each checkpoint and culminate near 84,432 million US dollars in the last quarter. There are occasional fluctuations, but these deviations are minor relative to the overall growth, reflecting expanding revenue generation and possibly increased market demand or effective sales strategies over time.

Operating Profit Margin

The operating profit margin remains relatively stable throughout the periods, maintaining a narrow range between approximately 3.36% and 3.85%. A subtle but consistent upward trend is evident, suggesting gradual improvements in operational efficiency or cost management. The margin expansion over time indicates the company’s ability to enhance profitability slightly in relation to its sales base.

In summary, the quarterly financial figures depict strengthening revenue and income performance alongside modest but stable gains in profitability ratios. The data suggest effective business management that supports both growth and operational margin improvements over an extended timeframe.

Net Income Trends

The net income attributable exhibits a generally increasing trajectory over the periods analyzed. Initial figures around 1,166 million US dollars show some volatility in the early quarters, fluctuating between approximately 951 and 1,670 million. From the latter part of the time frame onward, net income increasingly ascends, reaching a peak above 2,600 million US dollars. This indicates a strengthening profitability position with occasional quarterly variability.

Net Sales Patterns

Net sales consistently grow over the observed intervals, starting near 42,347 million US dollars. There are notable spikes correlated with certain quarters, particularly where sales surpass 70,000 million US dollars. The general trend indicates rising revenue generation, albeit with seasonal or cyclical fluctuations reflected in month-to-month changes. By the end of the series, net sales approach and surpass 84,000 million US dollars, signifying robust top-line expansion.

Net Profit Margin Developments

The net profit margin shows a modest but steady improvement over time. Starting at approximately 2.55%, margins remain relatively stable with minor oscillations initially. Thereafter, a gradual upward shift occurs, culminating near 3.00% in the final periods. This progression suggests enhanced operational efficiency or improved cost management relative to revenues, supporting sustained profitability growth.

Overall Financial Insights

The concurrent increase in net sales, net income, and net profit margin demonstrates a positive financial performance trend. The data reflects effective growth strategies resulting in higher revenue and profit generation alongside improving margin ratios. Some volatility in quarterly net income and sales may be attributable to seasonal factors or market conditions, but the overall direction appears upward. The strengthening margin rate further highlights efficient cost control or value capture capabilities.

Net Income Attributable to Costco

The net income shows a generally positive trend over the observed periods despite some fluctuations. Starting at $1,166 million, net income experienced a notable increase in August 2021 reaching $1,868 million. Following this peak, values moderately decreased and stabilized around the $1,300 to $1,600 million range before surging again in early 2023, peaking at $2,354 million in September 2024 and reaching a high of $2,610 million by August 2025. This pattern indicates periods of accelerated profitability possibly aligned with seasonal or operational factors, demonstrating strong financial performance growth over time.

Total Costco Stockholders’ Equity

The equity base displayed a consistent upward trajectory from $14,860 million to $29,164 million over the analyzed timeframe. This steady increase reflects ongoing accumulation of retained earnings and possibly other equity transactions. The growth is mostly smooth with minor variations, suggesting sustained capitalization and financial strengthening, which can support expansion and absorb operational risks.

Return on Equity (ROE)

The ROE values start at a high level around 29% and exhibit a gradual declining trend through the middle periods, reaching a low near 24.9%. Notably, from late 2023 into 2024, ROE increases sharply, peaking above 32%, before undergoing a gradual reduction toward 27.7% by the end of the observed data. The fluctuation illustrates varying efficiency in generating profit from equity, with periods of enhanced effectiveness followed by some normalization. The high ROE levels throughout indicate strong profitability relative to shareholder investments.

Summary Insights

Overall, the financial data reveal a company with growing net income and equity, signifying robust financial health and capacity for growth. The ROE, while showing some volatility, remains strong, reinforcing the company's ability to efficiently leverage equity capital to generate profits. The surges in net income and peaks in ROE suggest periods of exceptional operational performance or favorable market conditions. The consistency in equity growth helps underpin these profits, ensuring resilience and strategic financial flexibility.

The analysis reveals several noteworthy trends in the financial performance and position over the observed periods. Net income attributable to the company exhibits a pattern of fluctuations, with notable increases in specific quarters. Although there are periods of decline or stabilization, the overall trajectory shows growth, reaching peaks in recent quarters, indicating improved profitability and operational efficiency.

Total assets demonstrate a general upward trend with gradual increases over time. Despite some short-term variability, the asset base expands steadily, reflecting ongoing investment or asset accumulation strategies. This growth in assets underlines the company's ability to sustain or enhance its operational scale, even though occasional decreases suggest adjustments or shifts in asset composition.

Return on assets (ROA) steadily improves throughout the periods analyzed. Starting in the low single digits, the ratio consistently advances, surpassing 10% in the later quarters. This indicates enhanced efficiency in utilizing assets to generate net income. The rising ROA trend suggests better management of asset resources, leading to stronger returns on the company’s asset base.

Net Income Attributable

Fluctuates with periods of growth and stabilization; peaks notably in recent quarters, indicating improved profitability.

Total Assets

Generally increases over time, reflecting asset base expansion with some interim variability.

Return on Assets (ROA)

Shows a clear upward trend, reaching above 10% in recent quarters, denoting increased efficiency in asset utilization.