Costco Wholesale Corp. (NASDAQ:COST)

The financial metrics exhibit several distinct trends over the observed quarters. Gross profit margin demonstrates a slight decline from an initial high above 11%, falling gradually to a low near 10.39%-10.48% around late 2022, before recovering to approximately 11.09% in the most recent period. This pattern indicates a modest compression in gross profitability during mid-periods followed by improvement towards the end.

Operating profit margin follows a more stable yet mildly upward trajectory. Starting near 3.17% in early reported quarters, it maintains a narrow range between approximately 3.16% and 3.76%. Notably, the margin exhibits incremental growth in the latter periods, reflecting improved operational efficiency or better cost management.

Net profit margin persists with relative steadiness, beginning around 2.45% and advancing marginally to peaks near 2.98% by late observed periods. The slight upward drift indicates gradual enhancement in overall profitability after accounting for all expenses and taxes.

Return on equity (ROE) displays more pronounced fluctuations. The ratio decreases from about 24% down to the low twenties during the middle intervals but rebounds significantly to surpass 32% by the latest quarters. This rebound signifies stronger returns for shareholders, potentially driven by improved net incomes or more effective capital utilization.

Similarly, return on assets (ROA) fluctuates between roughly 7.2% and 9.1% in the initial phases, then escalates substantially exceeding 10% during the final periods. This upward movement suggests enhanced asset efficiency, likely contributing to the consistent rise in profitability ratios.

Overall, the data reveals a period of mild margin compression followed by stabilization and subsequent recovery across profitability metrics. Both ROE and ROA evidence improved capital and asset effectiveness in the later quarters, reflecting positively on the company’s financial performance dynamics.

The financial data exhibits several notable trends in sales and profitability over the reported quarters.

Net Sales

Net sales demonstrate a generally upward trend with marked seasonal fluctuations. Periods ending in early September and late November typically register higher sales, indicative of seasonal demand peaks. Over the years, there is a discernible growth trajectory, with net sales rising from approximately 34.3 billion US dollars in November 2018 to about 62.0 billion US dollars by May 2025. This represents significant expansion in revenue-generating capacity.

Gross Margin

Gross margin amounts also mirror the seasonal pattern seen in net sales, with peaks in the third and fourth quarters each year, reflecting the impact of increased sales volumes and possibly pricing strategies during key retail periods. The gross margin values grow from 3.7 billion US dollars in November 2018 to nearly 7 billion US dollars by May 2025. This upward movement substantiates the company's ability to scale operations and maintain profitability at higher sales levels.

Gross Profit Margin Percentage

The gross profit margin percentage remains relatively stable around the 11% mark throughout the timeframe, with minor fluctuations between approximately 10.4% and 11.3%. Notably, there is a slight declining trend from early 2019 through 2022 but it recovers gradually toward the end of the period, reaching around 11.1% by May 2025. This stability suggests consistent cost management relative to sales, despite varying economic and operational conditions.

Overall, the data reflects steady growth in sales and gross margins, supported by consistent profitability ratios. The seasonal variation patterns are prominent, with peak sales and margins typically occurring in the latter part of each fiscal year, aligning with anticipated consumer behavior trends. The marginal fluctuations in gross profit margin percentage indicate effective control of cost of goods sold amidst expansion.

The operating income demonstrates a generally upward trend over the analyzed periods. Starting from $949 million in late 2018, it exhibits fluctuations but tends to increase notably, reaching above $2,500 million in the most recent quarters. Periodic dips are observable, particularly in some intervals during 2022 and early 2023, yet the overall direction remains growth-oriented.

Net sales show significant seasonal variability with peaks recurring periodically, likely corresponding to key business cycles or seasonal demand increases. Beginning at approximately $34,311 million in the fourth quarter of 2018, net sales rise considerably over time, surpassing $78,000 million around late 2023 and 2024. Despite some periods with relatively flat or slightly declining figures, the long-term trend indicates steady growth in sales revenue.

The operating profit margin percentage displays a consistent upward trajectory, starting from around 3.17% in early recorded data, gradually increasing to about 3.82% by the last quarters of the dataset. This trend suggests improving operational efficiency or better cost management, allowing the company to retain a higher proportion of its net sales as operating income over time.

Operating Income

General upward trend with fluctuations; more than doubled from under $1,000 million to over $2,500 million; occasional quarterly dips, but strong recovery follows.

Net Sales

Marked seasonal variations with consistent long-term growth; increased from approximately $34 billion to nearly $78 billion; peak sales correspond to certain recurring periods indicating seasonality in revenue.

Operating Profit Margin

Steady improvement from 3.17% to nearly 3.8%; indicates enhancing profitability and operational efficiency throughout the dataset period.

In summary, the data reflect positive financial performance characterized by growing sales, rising operating income, and improving profit margins. These patterns indicate effective management practices and potentially expanding market presence or operational scale.

The financial data reveals several key trends over the analyzed periods.

Net Income Attributable to Costco

The net income exhibits a generally upward trajectory with some fluctuations. Starting at $767 million in November 2018, the figure experienced notable increases in later periods, reaching peaks such as $1,670 million in August 2021 and $2,354 million in November 2024. Despite some periodic declines—for instance, a decrease from $1,670 million in August 2021 to $1,324 million in November 2021—the overall trend points to growth in net income. The data also indicates a resilience in profitability, with strong rebounds following dips.

Net Sales

Net sales show a consistent increase over the examined quarters. From $34,311 million in November 2018, sales rose markedly to $78,185 million by November 2024. Several significant jumps can be observed, particularly between May 2019 and September 2019, and again from November 2020 to August 2021. The upward momentum in sales revenue is sustained through the latter periods, reflecting robust demand or successful sales strategies contributing to enhanced top-line growth.

Net Profit Margin

The net profit margin, available from September 2019 onward, displays a gradual improvement. Starting around 2.45% in September 2019, the margin steadily increased through subsequent quarters, reaching approximately 2.97% by May 2025. This consistent margin enhancement suggests improved operational efficiency, cost management, or favorable pricing dynamics. The margin's slow but steady rise, despite fluctuations in net income and sales, indicates better profitability per sales dollar over time.

In summary, the company demonstrates sustained growth in both net sales and net income over the reported periods, alongside a progressive improvement in net profit margins. This reflects a positive financial performance characterized by increasing revenues, improving profitability, and effective cost management or pricing strategies. The occasional short-term dips in net income do not detract from the overall positive trend observed in these key financial indicators.

Net Income Attributable to Costco

The net income attributable to Costco demonstrates a general upward trend over the observed periods. Starting at 767 million US dollars in November 2018, there is some fluctuation but with a notable increase reaching 2,354 million US dollars by November 2024. Intermediate peaks are observed around August 2020 (1,389 million) and September 2023 (2,160 million), indicating periods of significant profitability growth. The data shows occasional dips, but the general trajectory is positive, reflecting strong operational performance and profitability improvements over the years.

Total Costco Stockholders’ Equity

The total stockholders’ equity steadily increases throughout the periods. Beginning at 13,167 million US dollars in November 2018, the equity rises consistently with minor fluctuations. Despite a temporary drop from 18,284 million in August 2020 to 14,860 million in November 2020, the equity recovers and continues its upward path, reaching 27,125 million US dollars by May 2025. This steady increase suggests ongoing capital retention and growth, supporting the company’s financial foundation and its ability to sustain operations and invest in future activities.

Return on Equity (ROE)

The ROE figures, available starting from May 2019, present a relatively stable pattern with values mainly oscillating in the mid to high 20% range, reaching up to approximately 33% in February 2024. The initial reported ROE is 24% in May 2019, followed by a minor downward trend until late 2020, after which it generally stabilizes around 26% to 29%. Notably, there is a sharp increase to about 33% near the end of the data timeline (early 2024), indicating a period of enhanced efficiency in generating profit from shareholders’ equity. Following this peak, a slight decline occurs but ROE remains strong, highlighting ongoing efficient management of equity capital.

Overall Trends and Insights

The data reveals consistent growth in both net income and stockholders’ equity, reflecting profitable operations and sound financial management. While net income shows some volatility, the overall trend is upward, supported by a generally increasing equity base. The ROE illustrates sustained efficiency in utilizing equity to generate earnings, with a peak indicating particularly strong profitability in early 2024. The temporary decline in equity around late 2020 may warrant further investigation but does not disrupt the positive long-term trend. These patterns collectively suggest a financially robust position with improving returns on invested equity over the analyzed timeframe.

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

Net Income

The net income attributable to the company exhibits a general upward trend with fluctuations across quarters. Starting near $767 million in the initial period, net income rises significantly toward the later periods, peaking around $2,354 million. Although there are some intermittent declines, the overall trajectory is positive, indicating growth in profitability over time.

Total Assets

Total assets show a consistent increase overall, growing from approximately $43,814 million initially to about $75,482 million by the most recent quarter. While minor dips occur sporadically, such decreases are short-lived, and the trend remains upward, suggesting ongoing investment and expansion of the asset base.

Return on Assets (ROA)

The ROA data begins from a specified point and demonstrates a generally increasing pattern over time. Initially, ROA is recorded near 7.26% and fluctuates slightly in subsequent quarters but shows a steady rise toward values exceeding 10%. This improvement indicates enhanced efficiency in utilizing assets to generate profits across the reporting periods.

In summary, the company demonstrates solid financial growth characterized by increasing net income and asset growth. The upward trend in ROA further supports operational efficiency gains, reflecting stronger returns on the expanding asset base. Occasional short-term variations do not obscure the overall positive momentum in these key financial indicators.