Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Costco Wholesale Corp., short-term (operating) activity ratios

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Costco Wholesale Corp.’s inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Costco Wholesale Corp.’s receivables turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Costco Wholesale Corp.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Costco Wholesale Corp.’s working capital turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Costco Wholesale Corp.’s operating cycle improved from 2018 to 2019 and from 2019 to 2020.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Costco Wholesale Corp.’s number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Costco Wholesale Corp.’s cash conversion cycle improved from 2018 to 2019 and from 2019 to 2020.

Costco Wholesale Corp., inventory turnover calculation, comparison to benchmarks

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data (US$ in millions)
	Merchandise costs
	Merchandise inventories
	Short-term Activity Ratio
	Inventory turnover¹
	Benchmarks
	Inventory Turnover, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Inventory Turnover, Sector
	General Retailers
	Inventory Turnover, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Inventory turnover = Merchandise costs ÷ Merchandise inventories
= ÷ =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Costco Wholesale Corp.’s inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Costco Wholesale Corp., receivables turnover calculation, comparison to benchmarks

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data (US$ in millions)
	Net sales
	Receivables, net
	Short-term Activity Ratio
	Receivables turnover¹
	Benchmarks
	Receivables Turnover, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Receivables Turnover, Sector
	General Retailers
	Receivables Turnover, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Receivables turnover = Net sales ÷ Receivables, net
= ÷ =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Costco Wholesale Corp.’s receivables turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Costco Wholesale Corp., payables turnover calculation, comparison to benchmarks

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data (US$ in millions)
	Merchandise costs
	Accounts payable
	Short-term Activity Ratio
	Payables turnover¹
	Benchmarks
	Payables Turnover, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Payables Turnover, Sector
	General Retailers
	Payables Turnover, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Payables turnover = Merchandise costs ÷ Accounts payable
= ÷ =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Costco Wholesale Corp.’s payables turnover ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Costco Wholesale Corp., working capital turnover calculation, comparison to benchmarks

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data (US$ in millions)
	Current assets
	Less: Current liabilities
	Working capital

	Net sales
	Short-term Activity Ratio
	Working capital turnover¹
	Benchmarks
	Working Capital Turnover, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Working Capital Turnover, Sector
	General Retailers
	Working Capital Turnover, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Working capital turnover = Net sales ÷ Working capital
= ÷ =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Costco Wholesale Corp.’s working capital turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Costco Wholesale Corp., average inventory processing period calculation, comparison to benchmarks

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data
	Inventory turnover
	Short-term Activity Ratio (no. days)
	Average inventory processing period¹
	Benchmarks (no. days)
	Average Inventory Processing Period, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Average Inventory Processing Period, Sector
	General Retailers
	Average Inventory Processing Period, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Costco Wholesale Corp., average receivable collection period calculation, comparison to benchmarks

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data
	Receivables turnover
	Short-term Activity Ratio (no. days)
	Average receivable collection period¹
	Benchmarks (no. days)
	Average Receivable Collection Period, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Average Receivable Collection Period, Sector
	General Retailers
	Average Receivable Collection Period, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.

Costco Wholesale Corp., operating cycle calculation, comparison to benchmarks

No. days

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Short-term Activity Ratio
	Operating cycle¹
	Benchmarks
	Operating Cycle, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Operating Cycle, Sector
	General Retailers
	Operating Cycle, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Costco Wholesale Corp.’s operating cycle improved from 2018 to 2019 and from 2019 to 2020.

Costco Wholesale Corp., average payables payment period calculation, comparison to benchmarks

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data
	Payables turnover
	Short-term Activity Ratio (no. days)
	Average payables payment period¹
	Benchmarks (no. days)
	Average Payables Payment Period, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Average Payables Payment Period, Sector
	General Retailers
	Average Payables Payment Period, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Costco Wholesale Corp.’s number of days of payables outstanding decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Costco Wholesale Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

		Aug 30, 2020	Sep 1, 2019	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Average payables payment period
	Short-term Activity Ratio
	Cash conversion cycle¹
	Benchmarks
	Cash Conversion Cycle, Competitors²
	Amazon.com Inc.
	Dollar General Corp.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	Cash Conversion Cycle, Sector
	General Retailers
	Cash Conversion Cycle, Industry
	Consumer Services

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

¹ 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =

² Click competitor name to see calculations.

Short-term activity ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Costco Wholesale Corp.’s cash conversion cycle improved from 2018 to 2019 and from 2019 to 2020.

	Costco Wholesale Corp.	Other companies (not purchased previously)
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Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

Costco Wholesale Corp. (NASDAQ:COST)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle