Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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)
Costco Wholesale Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
| 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 deteriorated from Q4 2020 to Q1 2021 but then improved from Q1 2021 to Q2 2021 not reaching Q4 2020 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Costco Wholesale Corp.’s receivables turnover ratio deteriorated from Q4 2020 to Q1 2021 and from Q1 2021 to Q2 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Costco Wholesale Corp.’s payables turnover ratio decreased from Q4 2020 to Q1 2021 but then increased from Q1 2021 to Q2 2021 exceeding Q4 2020 level. |
| 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.’s number of days of inventory outstanding deteriorated from Q4 2020 to Q1 2021 but then improved from Q1 2021 to Q2 2021 not reaching Q4 2020 level. |
| 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. | |
| 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 increased from Q4 2020 to Q1 2021 but then decreased significantly from Q1 2021 to Q2 2021. |
| 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 deteriorated from Q4 2020 to Q1 2021 and from Q1 2021 to Q2 2021. |
Inventory Turnover
Costco Wholesale Corp., inventory turnover calculation (quarterly data)
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Merchandise costs | 39,078 | 37,458 | 46,401 | 32,249 | 34,056 | 32,233 | 41,310 | 30,233 | 30,720 | 30,623 | 38,671 | 28,131 | 28,733 | 27,617 | 36,697 | 24,970 | 25,927 | 24,288 | 31,649 | 23,162 | 24,469 | 23,621 | 31,096 | 22,687 | 23,897 | 23,385 | ||||||||
| Merchandise inventories | 13,865 | 14,901 | 12,242 | 11,010 | 11,850 | 13,818 | 11,395 | 11,304 | 11,356 | 12,205 | 11,040 | 10,626 | 10,671 | 11,213 | 9,834 | 9,736 | 9,530 | 10,721 | 8,969 | 8,927 | 8,908 | 10,382 | 8,908 | 8,869 | 8,558 | 9,644 | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Inventory turnover1 | 11.19 | 10.08 | 11.84 | 12.70 | 11.63 | 9.73 | 11.66 | 11.52 | 11.28 | 10.34 | 11.16 | 11.40 | 11.06 | 10.27 | 11.38 | 10.97 | 11.02 | 9.66 | 11.47 | 11.46 | 11.44 | 9.76 | 11.35 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | 9.80 | 8.76 | 9.81 | 9.33 | 8.08 | 8.33 | 7.97 | 8.66 | 8.10 | 8.38 | 8.59 | 8.69 | 6.98 | 7.47 | 8.35 | 8.66 | 7.70 | — | — | — | — | — | — | — | ||||||||
| Dollar General Corp. | 4.90 | 4.99 | 4.12 | 4.22 | 4.20 | 4.43 | 4.35 | 4.37 | 4.37 | 4.62 | 4.50 | 4.50 | 4.56 | 4.69 | 4.67 | 4.21 | 4.43 | 4.65 | 4.57 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 5.83 | 4.93 | 5.00 | 4.65 | 4.91 | 4.65 | 5.10 | 4.70 | 4.88 | 4.65 | 5.22 | 4.87 | 4.98 | 4.63 | 4.96 | 4.64 | 4.92 | 4.50 | 4.93 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 3.90 | 3.52 | 3.73 | 3.57 | 3.58 | 3.26 | 3.85 | 3.88 | 3.95 | 3.47 | 3.97 | 3.65 | 3.91 | 3.57 | 4.07 | 3.72 | 3.76 | 3.55 | 4.07 | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 6.78 | 6.65 | 6.10 | 4.80 | 5.95 | 5.95 | 5.61 | 4.30 | 5.75 | 5.97 | 5.91 | 4.66 | 5.95 | 6.11 | 5.88 | 4.91 | 5.83 | 6.06 | 6.05 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 6.88 | 5.59 | 6.13 | 4.64 | 5.64 | 5.59 | 6.08 | 4.99 | 5.96 | 5.98 | 6.09 | 5.17 | 6.24 | 6.35 | 6.47 | 5.28 | 5.90 | 5.76 | 5.96 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 9.94 | 9.79 | 8.88 | 7.60 | 8.81 | 8.64 | 8.70 | 7.60 | 9.09 | 8.72 | 8.53 | 7.35 | 8.39 | 8.36 | 8.39 | 7.24 | 8.30 | 8.11 | 8.12 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Inventory turnover
= (Merchandise costsQ2 2021
+ Merchandise costsQ1 2021
+ Merchandise costsQ4 2020
+ Merchandise costsQ3 2020)
÷ Merchandise inventories
= (39,078 + 37,458 + 46,401 + 32,249)
÷ 13,865 = 11.19
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 deteriorated from Q4 2020 to Q1 2021 but then improved from Q1 2021 to Q2 2021 not reaching Q4 2020 level. |
Receivables Turnover
Costco Wholesale Corp., receivables turnover calculation (quarterly data)
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net sales | 43,888 | 42,347 | 52,277 | 36,451 | 38,256 | 36,236 | 46,448 | 33,964 | 34,628 | 34,311 | 43,414 | 31,624 | 32,279 | 31,117 | 41,357 | 28,216 | 29,130 | 27,469 | 35,728 | 26,151 | 27,567 | 26,627 | 34,993 | 25,517 | 26,872 | 26,284 | ||||||||
| Receivables, net | 1,934 | 1,646 | 1,550 | 1,507 | 1,988 | 1,711 | 1,535 | 1,704 | 1,995 | 1,795 | 1,669 | 1,593 | 2,001 | 1,559 | 1,432 | 1,462 | 1,597 | 1,498 | 1,252 | 1,300 | 1,453 | 1,359 | 1,224 | 1,195 | 1,287 | 1,248 | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Receivables turnover1 | 90.47 | 102.87 | 105.30 | 104.44 | 77.92 | 88.41 | 97.30 | 85.87 | 72.17 | 78.90 | 82.94 | 85.61 | 66.45 | 83.27 | 88.11 | 82.45 | 74.19 | 78.05 | 92.71 | 88.72 | 78.94 | 83.89 | 92.86 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Dollar General Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 46.57 | 42.95 | 52.34 | 49.72 | 48.38 | 47.32 | 55.89 | 48.64 | 48.21 | 44.41 | 51.69 | 45.81 | 44.52 | 44.23 | 46.62 | 46.80 | 46.13 | 45.44 | 46.84 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 75.94 | 213.66 | 108.00 | 91.76 | 106.12 | 100.60 | 112.54 | 92.44 | 105.97 | 99.83 | 109.62 | 99.38 | 111.01 | 105.37 | 128.21 | 106.64 | 111.30 | 112.28 | 129.98 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 105.28 | 105.52 | 82.74 | 92.13 | 95.50 | 95.78 | 81.22 | 87.77 | 101.15 | 109.65 | 88.31 | 83.61 | 89.97 | 91.94 | 82.49 | 89.87 | 90.93 | 92.46 | 85.10 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Receivables turnover
= (Net salesQ2 2021
+ Net salesQ1 2021
+ Net salesQ4 2020
+ Net salesQ3 2020)
÷ Receivables, net
= (43,888 + 42,347 + 52,277 + 36,451)
÷ 1,934 = 90.47
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 deteriorated from Q4 2020 to Q1 2021 and from Q1 2021 to Q2 2021. |
Payables Turnover
Costco Wholesale Corp., payables turnover calculation (quarterly data)
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Merchandise costs | 39,078 | 37,458 | 46,401 | 32,249 | 34,056 | 32,233 | 41,310 | 30,233 | 30,720 | 30,623 | 38,671 | 28,131 | 28,733 | 27,617 | 36,697 | 24,970 | 25,927 | 24,288 | 31,649 | 23,162 | 24,469 | 23,621 | 31,096 | 22,687 | 23,897 | 23,385 | ||||||||
| Accounts payable | 14,383 | 17,014 | 14,172 | 10,813 | 11,072 | 14,440 | 11,679 | 11,331 | 10,711 | 13,133 | 11,237 | 10,705 | 10,061 | 11,992 | 9,608 | 9,425 | 8,764 | 11,003 | 7,612 | 8,828 | 8,222 | 10,378 | 9,011 | 8,895 | 8,302 | 9,783 | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Payables turnover1 | 10.79 | 8.83 | 10.23 | 12.93 | 12.45 | 9.31 | 11.38 | 11.49 | 11.96 | 9.61 | 10.96 | 11.32 | 11.73 | 9.61 | 11.64 | 11.34 | 11.98 | 9.41 | 13.52 | 11.59 | 12.39 | 9.76 | 11.22 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | 3.22 | 3.57 | 3.77 | 4.39 | 3.51 | 4.37 | 4.11 | 4.47 | 3.64 | 4.30 | 4.61 | 4.78 | 3.23 | 3.93 | 4.48 | 4.86 | 3.49 | — | — | — | — | — | — | — | ||||||||
| Dollar General Corp. | 6.33 | 6.94 | 6.73 | 6.67 | 6.80 | 7.42 | 7.47 | 7.45 | 7.42 | 8.22 | 8.09 | 8.19 | 8.40 | 9.53 | 9.76 | 7.55 | 8.43 | 9.88 | 9.41 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 6.73 | 7.35 | 9.33 | 7.91 | 7.62 | 6.99 | 9.16 | 7.66 | 7.29 | 6.90 | 9.19 | 7.63 | 7.51 | 6.90 | 8.90 | 7.63 | 7.32 | 6.83 | 8.87 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 4.18 | 4.63 | 6.42 | 5.54 | 5.18 | 4.26 | 5.85 | 5.16 | 5.22 | 4.53 | 6.86 | 5.09 | 5.15 | 4.41 | 6.40 | 5.21 | 5.18 | 4.45 | 6.84 | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 5.61 | 5.94 | 5.53 | 4.86 | 5.93 | 6.45 | 5.46 | 4.45 | 5.75 | 6.35 | 5.89 | 4.94 | 6.48 | 7.47 | 6.74 | 5.98 | 7.39 | 8.02 | 7.01 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 10.64 | 25.79 | 11.17 | 8.45 | 11.00 | 10.97 | 10.53 | 8.28 | 9.99 | 10.42 | 10.25 | 8.18 | 10.28 | 10.91 | 10.56 | 8.62 | 10.11 | 10.52 | 10.00 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 8.81 | 9.15 | 8.40 | 7.87 | 8.48 | 8.57 | 8.19 | 7.70 | 8.84 | 8.46 | 8.10 | 7.74 | 8.60 | 8.76 | 8.72 | 8.39 | 9.03 | 9.50 | 9.38 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Payables turnover
= (Merchandise costsQ2 2021
+ Merchandise costsQ1 2021
+ Merchandise costsQ4 2020
+ Merchandise costsQ3 2020)
÷ Accounts payable
= (39,078 + 37,458 + 46,401 + 32,249)
÷ 14,383 = 10.79
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 decreased from Q4 2020 to Q1 2021 but then increased from Q1 2021 to Q2 2021 exceeding Q4 2020 level. |
Working Capital Turnover
Costco Wholesale Corp., working capital turnover calculation (quarterly data)
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Current assets | 26,308 | 32,096 | 28,120 | 25,254 | 23,703 | 26,643 | 23,485 | 22,285 | 21,648 | 22,954 | 20,289 | 19,693 | 18,899 | 19,897 | 17,317 | 17,256 | 17,460 | 18,570 | 15,218 | 16,542 | 15,529 | 18,858 | 17,299 | 17,634 | 18,058 | 19,156 | ||||||||
| Less: Current liabilities | 26,564 | 32,667 | 24,844 | 22,779 | 22,695 | 26,265 | 23,237 | 22,832 | 22,450 | 22,473 | 19,926 | 19,411 | 18,913 | 20,360 | 17,495 | 21,394 | 18,860 | 19,161 | 15,575 | 16,999 | 15,433 | 18,293 | 16,540 | 16,736 | 18,249 | 16,019 | ||||||||
| Working capital | (256) | (571) | 3,276 | 2,475 | 1,008 | 378 | 248 | (547) | (802) | 481 | 363 | 282 | (14) | (463) | (178) | (4,138) | (1,400) | (591) | (357) | (457) | 96 | 565 | 759 | 898 | (191) | 3,137 | ||||||||
| Net sales | 43,888 | 42,347 | 52,277 | 36,451 | 38,256 | 36,236 | 46,448 | 33,964 | 34,628 | 34,311 | 43,414 | 31,624 | 32,279 | 31,117 | 41,357 | 28,216 | 29,130 | 27,469 | 35,728 | 26,151 | 27,567 | 26,627 | 34,993 | 25,517 | 26,872 | 26,284 | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Working capital turnover1 | — | — | 49.82 | 63.59 | 153.67 | 400.20 | 602.22 | — | — | 294.44 | 381.36 | 483.61 | — | — | — | — | — | — | — | — | 1,194.83 | 201.79 | 149.76 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | 60.82 | 31.47 | 18.92 | 47.22 | 32.92 | 38.37 | 35.44 | 42.11 | 34.71 | 48.44 | 56.56 | 69.39 | 76.87 | 107.01 | 308.26 | 69.18 | 69.20 | — | — | — | — | — | — | — | ||||||||
| Dollar General Corp. | 14.31 | 13.76 | 43.75 | 48.44 | 43.95 | 41.68 | 15.56 | 15.23 | 15.35 | 14.61 | 18.29 | 19.21 | 19.41 | 21.13 | 20.84 | 21.08 | 21.25 | 14.13 | 14.18 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 16.66 | 28.53 | 76.81 | 68.95 | 57.87 | 124.59 | 59.68 | 65.46 | 43.91 | 33.09 | 36.84 | 26.96 | 20.77 | 27.68 | 26.34 | 18.99 | 20.84 | 23.41 | 19.82 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 12.67 | 20.57 | 530.50 | 119.81 | 74.71 | 46.13 | — | 1,031.26 | 78.17 | 266.87 | 101.51 | 254.28 | 166.37 | 112.95 | 2,500.65 | 657.58 | 363.64 | 25.59 | 856.14 | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 48.30 | 389.66 | — | — | — | — | — | — | — | — | — | — | — | — | — | 352.16 | 143.21 | 37.77 | 48.93 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 8.72 | 6.55 | 23.97 | 24.08 | 23.99 | 26.62 | 13.27 | 11.75 | 11.43 | 10.67 | 10.67 | 11.76 | 11.64 | 11.36 | 11.09 | 10.72 | 12.87 | 12.25 | 13.06 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Working capital turnover
= (Net salesQ2 2021
+ Net salesQ1 2021
+ Net salesQ4 2020
+ Net salesQ3 2020)
÷ Working capital
= (43,888 + 42,347 + 52,277 + 36,451)
÷ -256 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Costco Wholesale Corp., average inventory processing period calculation (quarterly data)
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Inventory turnover | 11.19 | 10.08 | 11.84 | 12.70 | 11.63 | 9.73 | 11.66 | 11.52 | 11.28 | 10.34 | 11.16 | 11.40 | 11.06 | 10.27 | 11.38 | 10.97 | 11.02 | 9.66 | 11.47 | 11.46 | 11.44 | 9.76 | 11.35 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average inventory processing period1 | 33 | 36 | 31 | 29 | 31 | 37 | 31 | 32 | 32 | 35 | 33 | 32 | 33 | 36 | 32 | 33 | 33 | 38 | 32 | 32 | 32 | 37 | 32 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | 37 | 42 | 37 | 39 | 45 | 44 | 46 | 42 | 45 | 44 | 42 | 42 | 52 | 49 | 44 | 42 | 47 | — | — | — | — | — | — | — | ||||||||
| Dollar General Corp. | 74 | 73 | 89 | 87 | 87 | 82 | 84 | 83 | 84 | 79 | 81 | 81 | 80 | 78 | 78 | 87 | 82 | 78 | 80 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 63 | 74 | 73 | 78 | 74 | 78 | 72 | 78 | 75 | 78 | 70 | 75 | 73 | 79 | 74 | 79 | 74 | 81 | 74 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 94 | 104 | 98 | 102 | 102 | 112 | 95 | 94 | 92 | 105 | 92 | 100 | 93 | 102 | 90 | 98 | 97 | 103 | 90 | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 54 | 55 | 60 | 76 | 61 | 61 | 65 | 85 | 63 | 61 | 62 | 78 | 61 | 60 | 62 | 74 | 63 | 60 | 60 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 53 | 65 | 60 | 79 | 65 | 65 | 60 | 73 | 61 | 61 | 60 | 71 | 58 | 57 | 56 | 69 | 62 | 63 | 61 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 37 | 37 | 41 | 48 | 41 | 42 | 42 | 48 | 40 | 42 | 43 | 50 | 44 | 44 | 43 | 50 | 44 | 45 | 45 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.19 = 33
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.’s number of days of inventory outstanding deteriorated from Q4 2020 to Q1 2021 but then improved from Q1 2021 to Q2 2021 not reaching Q4 2020 level. |
Average Receivable Collection Period
Costco Wholesale Corp., average receivable collection period calculation (quarterly data)
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Receivables turnover | 90.47 | 102.87 | 105.30 | 104.44 | 77.92 | 88.41 | 97.30 | 85.87 | 72.17 | 78.90 | 82.94 | 85.61 | 66.45 | 83.27 | 88.11 | 82.45 | 74.19 | 78.05 | 92.71 | 88.72 | 78.94 | 83.89 | 92.86 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average receivable collection period1 | 4 | 4 | 3 | 3 | 5 | 4 | 4 | 4 | 5 | 5 | 4 | 4 | 5 | 4 | 4 | 4 | 5 | 5 | 4 | 4 | 5 | 4 | 4 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Dollar General Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 8 | 8 | 7 | 7 | 8 | 8 | 7 | 8 | 8 | 8 | 7 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 5 | 2 | 3 | 4 | 3 | 4 | 3 | 4 | 3 | 4 | 3 | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 90.47 = 4
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. |
Operating Cycle
Costco Wholesale Corp., operating cycle calculation (quarterly data)
No. days
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Average inventory processing period | 33 | 36 | 31 | 29 | 31 | 37 | 31 | 32 | 32 | 35 | 33 | 32 | 33 | 36 | 32 | 33 | 33 | 38 | 32 | 32 | 32 | 37 | 32 | — | — | — | ||||||||
| Average receivable collection period | 4 | 4 | 3 | 3 | 5 | 4 | 4 | 4 | 5 | 5 | 4 | 4 | 5 | 4 | 4 | 4 | 5 | 5 | 4 | 4 | 5 | 4 | 4 | — | — | — | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Operating cycle1 | 37 | 40 | 34 | 32 | 36 | 41 | 35 | 36 | 37 | 40 | 37 | 36 | 38 | 40 | 36 | 37 | 38 | 43 | 36 | 36 | 37 | 41 | 36 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||||||||
| Dollar General Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 71 | 82 | 80 | 85 | 82 | 86 | 79 | 86 | 83 | 86 | 77 | 83 | 81 | 87 | 82 | 87 | 82 | 89 | 82 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 58 | 67 | 63 | 83 | 68 | 69 | 63 | 77 | 64 | 65 | 63 | 75 | 61 | 60 | 59 | 72 | 65 | 66 | 64 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 40 | 40 | 45 | 52 | 45 | 46 | 46 | 52 | 44 | 45 | 47 | 54 | 48 | 48 | 47 | 54 | 48 | 49 | 49 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 33 + 4 = 37
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. |
Average Payables Payment Period
Costco Wholesale Corp., average payables payment period calculation (quarterly data)
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Payables turnover | 10.79 | 8.83 | 10.23 | 12.93 | 12.45 | 9.31 | 11.38 | 11.49 | 11.96 | 9.61 | 10.96 | 11.32 | 11.73 | 9.61 | 11.64 | 11.34 | 11.98 | 9.41 | 13.52 | 11.59 | 12.39 | 9.76 | 11.22 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average payables payment period1 | 34 | 41 | 36 | 28 | 29 | 39 | 32 | 32 | 31 | 38 | 33 | 32 | 31 | 38 | 31 | 32 | 30 | 39 | 27 | 31 | 29 | 37 | 33 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | 113 | 102 | 97 | 83 | 104 | 84 | 89 | 82 | 100 | 85 | 79 | 76 | 113 | 93 | 81 | 75 | 105 | — | — | — | — | — | — | — | ||||||||
| Dollar General Corp. | 58 | 53 | 54 | 55 | 54 | 49 | 49 | 49 | 49 | 44 | 45 | 45 | 43 | 38 | 37 | 48 | 43 | 37 | 39 | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 54 | 50 | 39 | 46 | 48 | 52 | 40 | 48 | 50 | 53 | 40 | 48 | 49 | 53 | 41 | 48 | 50 | 53 | 41 | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 87 | 79 | 57 | 66 | 70 | 86 | 62 | 71 | 70 | 81 | 53 | 72 | 71 | 83 | 57 | 70 | 70 | 82 | 53 | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 65 | 61 | 66 | 75 | 62 | 57 | 67 | 82 | 63 | 57 | 62 | 74 | 56 | 49 | 54 | 61 | 49 | 45 | 52 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 34 | 14 | 33 | 43 | 33 | 33 | 35 | 44 | 37 | 35 | 36 | 45 | 35 | 33 | 35 | 42 | 36 | 35 | 36 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 41 | 40 | 43 | 46 | 43 | 43 | 45 | 47 | 41 | 43 | 45 | 47 | 42 | 42 | 42 | 44 | 40 | 38 | 39 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.79 = 34
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 increased from Q4 2020 to Q1 2021 but then decreased significantly from Q1 2021 to Q2 2021. |
Cash Conversion Cycle
Costco Wholesale Corp., cash conversion cycle calculation (quarterly data)
No. days
| Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | Sep 1, 2019 | May 12, 2019 | Feb 17, 2019 | Nov 25, 2018 | Sep 2, 2018 | May 13, 2018 | Feb 18, 2018 | Nov 26, 2017 | Sep 3, 2017 | May 7, 2017 | Feb 12, 2017 | Nov 20, 2016 | Aug 28, 2016 | May 8, 2016 | Feb 14, 2016 | Nov 22, 2015 | Aug 30, 2015 | May 10, 2015 | Feb 15, 2015 | Nov 23, 2014 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Average inventory processing period | 33 | 36 | 31 | 29 | 31 | 37 | 31 | 32 | 32 | 35 | 33 | 32 | 33 | 36 | 32 | 33 | 33 | 38 | 32 | 32 | 32 | 37 | 32 | — | — | — | ||||||||
| Average receivable collection period | 4 | 4 | 3 | 3 | 5 | 4 | 4 | 4 | 5 | 5 | 4 | 4 | 5 | 4 | 4 | 4 | 5 | 5 | 4 | 4 | 5 | 4 | 4 | — | — | — | ||||||||
| Average payables payment period | 34 | 41 | 36 | 28 | 29 | 39 | 32 | 32 | 31 | 38 | 33 | 32 | 31 | 38 | 31 | 32 | 30 | 39 | 27 | 31 | 29 | 37 | 33 | — | — | — | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Cash conversion cycle1 | 3 | -1 | -2 | 4 | 7 | 2 | 3 | 4 | 6 | 2 | 4 | 4 | 7 | 2 | 5 | 5 | 8 | 4 | 9 | 5 | 8 | 4 | 3 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||||||||
| Dollar General Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 17 | 32 | 41 | 39 | 34 | 34 | 39 | 38 | 33 | 33 | 37 | 35 | 32 | 34 | 41 | 39 | 32 | 36 | 41 | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 24 | 53 | 30 | 40 | 35 | 36 | 28 | 33 | 27 | 30 | 27 | 30 | 26 | 27 | 24 | 30 | 29 | 31 | 28 | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | -1 | 0 | 2 | 6 | 2 | 3 | 1 | 5 | 3 | 2 | 2 | 7 | 6 | 6 | 5 | 10 | 8 | 11 | 10 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (filing date: 2021-03-10), 10-Q (filing date: 2020-12-16), 10-K (filing date: 2020-10-07), 10-Q (filing date: 2020-06-04), 10-Q (filing date: 2020-03-12), 10-Q (filing date: 2019-12-23), 10-K (filing date: 2019-10-11), 10-Q (filing date: 2019-06-06), 10-Q (filing date: 2019-03-13), 10-Q (filing date: 2018-12-20), 10-K (filing date: 2018-10-26), 10-Q (filing date: 2018-06-07), 10-Q (filing date: 2018-03-15), 10-Q (filing date: 2017-12-21), 10-K (filing date: 2017-10-18), 10-Q (filing date: 2017-06-01), 10-Q (filing date: 2017-03-09), 10-Q (filing date: 2016-12-16), 10-K (filing date: 2016-10-12), 10-Q (filing date: 2016-06-01), 10-Q (filing date: 2016-03-09), 10-Q (filing date: 2015-12-18), 10-K (filing date: 2015-10-14), 10-Q (filing date: 2015-06-04), 10-Q (filing date: 2015-03-11), 10-Q (filing date: 2014-12-18).
1 Q2 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 33 + 4 – 34 = 3
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 deteriorated from Q4 2020 to Q1 2021 and from Q1 2021 to Q2 2021. |