Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

Analysis of Reportable Segments

Microsoft Excel

Segment Profit Margin

Costco Wholesale Corp., profit margin by reportable segment

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 3.05% 3.19% 3.01% 2.97% 2.74% 2.72%
Canadian Operations 4.38% 4.25% 4.31% 3.83% 4.32% 4.54%
Other International Operations 3.91% 3.93% 4.66% 4.25% 3.83% 4.05%

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).

Segment profitability ratio Reportable segment The company
Segment profit margin United States Operations United States Operations segment profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Canadian Operations Canadian Operations segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Other International Operations Other International Operations segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Segment Profit Margin: United States Operations

Costco Wholesale Corp.; United States Operations; segment profit margin calculation

Microsoft Excel
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 5,392 5,268 4,262 3,633 3,063 2,787
Total revenue 176,630 165,294 141,398 122,142 111,751 102,286
Segment Profitability Ratio
Segment profit margin1 3.05% 3.19% 3.01% 2.97% 2.74% 2.72%

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
Segment profit margin = 100 × Operating income ÷ Total revenue
= 100 × 5,392 ÷ 176,630 = 3.05%

Segment profitability ratio Reportable segment The company
Segment profit margin United States Operations United States Operations segment profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Segment Profit Margin: Canadian Operations

Costco Wholesale Corp.; Canadian Operations; segment profit margin calculation

Microsoft Excel
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 1,448 1,346 1,176 860 924 939
Total revenue 33,056 31,675 27,298 22,434 21,366 20,689
Segment Profitability Ratio
Segment profit margin1 4.38% 4.25% 4.31% 3.83% 4.32% 4.54%

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
Segment profit margin = 100 × Operating income ÷ Total revenue
= 100 × 1,448 ÷ 33,056 = 4.38%

Segment profitability ratio Reportable segment The company
Segment profit margin Canadian Operations Canadian Operations segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Segment Profit Margin: Other International Operations

Costco Wholesale Corp.; Other International Operations; segment profit margin calculation

Microsoft Excel
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 1,274 1,179 1,270 942 750 754
Total revenue 32,604 29,985 27,233 22,185 19,586 18,601
Segment Profitability Ratio
Segment profit margin1 3.91% 3.93% 4.66% 4.25% 3.83% 4.05%

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
Segment profit margin = 100 × Operating income ÷ Total revenue
= 100 × 1,274 ÷ 32,604 = 3.91%

Segment profitability ratio Reportable segment The company
Segment profit margin Other International Operations Other International Operations segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Segment Return on Assets (Segment ROA)

Costco Wholesale Corp., ROA by reportable segment

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 10.96% 11.73% 10.77% 9.47% 9.52% 9.88%
Canadian Operations 22.55% 20.52% 19.72% 16.32% 21.15% 21.82%
Other International Operations 9.52% 9.28% 9.26% 7.90% 8.46% 9.06%

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).

Segment profitability ratio Reportable segment The company
Segment ROA United States Operations United States Operations segment ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Canadian Operations Canadian Operations segment ROA improved from 2021 to 2022 and from 2022 to 2023.
Other International Operations Other International Operations segment ROA improved from 2021 to 2022 and from 2022 to 2023.

Segment ROA: United States Operations

Costco Wholesale Corp.; United States Operations; segment ROA calculation

Microsoft Excel
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 5,392 5,268 4,262 3,633 3,063 2,787
Total assets 49,189 44,904 39,589 38,366 32,162 28,207
Segment Profitability Ratio
Segment ROA1 10.96% 11.73% 10.77% 9.47% 9.52% 9.88%

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
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × 5,392 ÷ 49,189 = 10.96%

Segment profitability ratio Reportable segment The company
Segment ROA United States Operations United States Operations segment ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Segment ROA: Canadian Operations

Costco Wholesale Corp.; Canadian Operations; segment ROA calculation

Microsoft Excel
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 1,448 1,346 1,176 860 924 939
Total assets 6,420 6,558 5,962 5,270 4,369 4,303
Segment Profitability Ratio
Segment ROA1 22.55% 20.52% 19.72% 16.32% 21.15% 21.82%

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
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × 1,448 ÷ 6,420 = 22.55%

Segment profitability ratio Reportable segment The company
Segment ROA Canadian Operations Canadian Operations segment ROA improved from 2021 to 2022 and from 2022 to 2023.

Segment ROA: Other International Operations

Costco Wholesale Corp.; Other International Operations; segment ROA calculation

Microsoft Excel
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 1,274 1,179 1,270 942 750 754
Total assets 13,385 12,704 13,717 11,920 8,869 8,320
Segment Profitability Ratio
Segment ROA1 9.52% 9.28% 9.26% 7.90% 8.46% 9.06%

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
Segment ROA = 100 × Operating income ÷ Total assets
= 100 × 1,274 ÷ 13,385 = 9.52%

Segment profitability ratio Reportable segment The company
Segment ROA Other International Operations Other International Operations segment ROA improved from 2021 to 2022 and from 2022 to 2023.

Segment Asset Turnover

Costco Wholesale Corp., asset turnover by reportable segment

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 3.59 3.68 3.57 3.18 3.47 3.63
Canadian Operations 5.15 4.83 4.58 4.26 4.89 4.81
Other International Operations 2.44 2.36 1.99 1.86 2.21 2.24

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).

Segment activity ratio Reportable segment The company
Segment asset turnover United States Operations United States Operations segment asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Canadian Operations Canadian Operations segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Other International Operations Other International Operations segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Segment Asset Turnover: United States Operations

Costco Wholesale Corp.; United States Operations; segment asset turnover calculation

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
Selected Financial Data (US$ in millions)
Total revenue 176,630 165,294 141,398 122,142 111,751 102,286
Total assets 49,189 44,904 39,589 38,366 32,162 28,207
Segment Activity Ratio
Segment asset turnover1 3.59 3.68 3.57 3.18 3.47 3.63

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
Segment asset turnover = Total revenue ÷ Total assets
= 176,630 ÷ 49,189 = 3.59

Segment activity ratio Reportable segment The company
Segment asset turnover United States Operations United States Operations segment asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Segment Asset Turnover: Canadian Operations

Costco Wholesale Corp.; Canadian Operations; segment asset turnover calculation

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
Selected Financial Data (US$ in millions)
Total revenue 33,056 31,675 27,298 22,434 21,366 20,689
Total assets 6,420 6,558 5,962 5,270 4,369 4,303
Segment Activity Ratio
Segment asset turnover1 5.15 4.83 4.58 4.26 4.89 4.81

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
Segment asset turnover = Total revenue ÷ Total assets
= 33,056 ÷ 6,420 = 5.15

Segment activity ratio Reportable segment The company
Segment asset turnover Canadian Operations Canadian Operations segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Segment Asset Turnover: Other International Operations

Costco Wholesale Corp.; Other International Operations; segment asset turnover calculation

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
Selected Financial Data (US$ in millions)
Total revenue 32,604 29,985 27,233 22,185 19,586 18,601
Total assets 13,385 12,704 13,717 11,920 8,869 8,320
Segment Activity Ratio
Segment asset turnover1 2.44 2.36 1.99 1.86 2.21 2.24

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
Segment asset turnover = Total revenue ÷ Total assets
= 32,604 ÷ 13,385 = 2.44

Segment activity ratio Reportable segment The company
Segment asset turnover Other International Operations Other International Operations segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Segment Capital Expenditures to Depreciation

Costco Wholesale Corp., capital expenditures to depreciation by reportable segment

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 2.06 1.95 1.95 1.65 1.94 1.90
Canadian Operations 1.54 2.16 1.54 1.66 2.12 1.99
Other International Operations 2.56 2.49 2.66 2.03 2.28 2.92

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).

Segment financial ratio Reportable segment The company
Segment capital expenditures to depreciation United States Operations United States Operations segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Canadian Operations Canadian Operations segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Other International Operations Other International Operations segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Segment Capital Expenditures to Depreciation: United States Operations

Costco Wholesale Corp.; United States Operations; segment capital expenditures to depreciation calculation

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
Selected Financial Data (US$ in millions)
Additions to property and equipment 3,288 2,795 2,612 2,060 2,186 2,046
Depreciation and amortization 1,599 1,436 1,339 1,248 1,126 1,078
Segment Financial Ratio
Segment capital expenditures to depreciation1 2.06 1.95 1.95 1.65 1.94 1.90

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
Segment capital expenditures to depreciation = Additions to property and equipment ÷ Depreciation and amortization
= 3,288 ÷ 1,599 = 2.06

Segment financial ratio Reportable segment The company
Segment capital expenditures to depreciation United States Operations United States Operations segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Segment Capital Expenditures to Depreciation: Canadian Operations

Costco Wholesale Corp.; Canadian Operations; segment capital expenditures to depreciation calculation

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
Selected Financial Data (US$ in millions)
Additions to property and equipment 281 388 272 258 303 268
Depreciation and amortization 183 180 177 155 143 135
Segment Financial Ratio
Segment capital expenditures to depreciation1 1.54 2.16 1.54 1.66 2.12 1.99

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
Segment capital expenditures to depreciation = Additions to property and equipment ÷ Depreciation and amortization
= 281 ÷ 183 = 1.54

Segment financial ratio Reportable segment The company
Segment capital expenditures to depreciation Canadian Operations Canadian Operations segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Segment Capital Expenditures to Depreciation: Other International Operations

Costco Wholesale Corp.; Other International Operations; segment capital expenditures to depreciation calculation

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
Selected Financial Data (US$ in millions)
Additions to property and equipment 754 708 704 492 509 655
Depreciation and amortization 295 284 265 242 223 224
Segment Financial Ratio
Segment capital expenditures to depreciation1 2.56 2.49 2.66 2.03 2.28 2.92

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
Segment capital expenditures to depreciation = Additions to property and equipment ÷ Depreciation and amortization
= 754 ÷ 295 = 2.56

Segment financial ratio Reportable segment The company
Segment capital expenditures to depreciation Other International Operations Other International Operations segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Total revenue

Costco Wholesale Corp., total revenue by reportable segment

US$ in millions

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 176,630 165,294 141,398 122,142 111,751 102,286
Canadian Operations 33,056 31,675 27,298 22,434 21,366 20,689
Other International Operations 32,604 29,985 27,233 22,185 19,586 18,601
Total 242,290 226,954 195,929 166,761 152,703 141,576

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).


Operating income

Costco Wholesale Corp., operating income by reportable segment

US$ in millions

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 5,392 5,268 4,262 3,633 3,063 2,787
Canadian Operations 1,448 1,346 1,176 860 924 939
Other International Operations 1,274 1,179 1,270 942 750 754
Total 8,114 7,793 6,708 5,435 4,737 4,480

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).


Depreciation and amortization

Costco Wholesale Corp., depreciation and amortization by reportable segment

US$ in millions

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 1,599 1,436 1,339 1,248 1,126 1,078
Canadian Operations 183 180 177 155 143 135
Other International Operations 295 284 265 242 223 224
Total 2,077 1,900 1,781 1,645 1,492 1,437

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).


Additions to property and equipment

Costco Wholesale Corp., additions to property and equipment by reportable segment

US$ in millions

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 3,288 2,795 2,612 2,060 2,186 2,046
Canadian Operations 281 388 272 258 303 268
Other International Operations 754 708 704 492 509 655
Total 4,323 3,891 3,588 2,810 2,998 2,969

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).


Total assets

Costco Wholesale Corp., total assets by reportable segment

US$ in millions

Microsoft Excel
Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019 Sep 2, 2018
United States Operations 49,189 44,904 39,589 38,366 32,162 28,207
Canadian Operations 6,420 6,558 5,962 5,270 4,369 4,303
Other International Operations 13,385 12,704 13,717 11,920 8,869 8,320
Total 68,994 64,166 59,268 55,556 45,400 40,830

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).