Costco Wholesale Corp. (COST)


Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Low level of difficulty


Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Turnover Ratios
Inventory turnover 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 11.39 11.79 10.37 11.64
Receivables turnover 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 94.92 87.91 89.77 96.00
Payables turnover 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 11.36 12.15 10.22 11.60
Working capital turnover 602.22 294.44 381.36 483.61 1,194.83 201.79 149.76 126.31 35.71 34.70
Average No. Days
Average inventory processing period 31 32 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 32 31 35 31
Add: Average receivable collection period 4 4 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 4 4 4 4
Operating cycle 35 36 37 40 37 36 38 40 36 37 38 43 36 36 37 41 36 36 35 39 35
Less: Average payables payment period 32 32 31 38 33 32 31 38 31 32 30 39 27 31 29 37 33 32 30 36 31
Cash conversion cycle 3 4 6 2 4 4 7 2 5 5 8 4 9 5 8 4 3 4 5 3 4

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory.
Receivables turnover An activity ratio equal to revenue divided by receivables.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Costco Wholesale Corp.’s payables turnover ratio declined from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital.

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.
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.
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.

Inventory Turnover

Costco Wholesale Corp., inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data (US$ in millions)
Merchandise costs 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  31,037  22,554  23,043  21,824 
Merchandise inventories 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  8,456  8,483  8,267  9,337 
Short-term Activity Ratio
Inventory turnover1 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 11.39 11.79 10.37 11.64
Benchmarks
Inventory Turnover, Competitors2
Amazon.com Inc. 8.33 7.97 8.66 8.10 8.38 8.59 8.69 6.98 7.47 8.35 8.66 7.70 7.82 8.25 7.84 7.00 7.57 8.82 8.70 7.56
Home Depot Inc. 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 4.55 4.72 4.48 4.89 4.44 4.51 4.20 4.65
Lowe’s Cos. Inc. 3.85 3.85 3.95 3.47 3.97 3.65 3.91 3.57 4.07 3.72 3.76 3.55 4.07 3.65 3.88 3.50 4.11 3.70 3.82 3.33 3.83
Target Corp. 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 5.01 6.25 5.97 5.83 5.17 6.48 6.50 5.84
TJX Cos. Inc. 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 4.86 5.68 5.95 6.46 5.17 5.96 6.19 6.61
Walmart Inc. 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 7.16 8.11 7.88 8.09 7.07 7.95 7.92 7.98

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Inventory turnover = (Merchandise costsQ4 2019 + Merchandise costsQ3 2019 + Merchandise costsQ2 2019 + Merchandise costsQ1 2019) ÷ Merchandise inventories
= (41,310 + 30,233 + 30,720 + 30,623) ÷ 11,395 = 11.66

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.

Receivables Turnover

Costco Wholesale Corp., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data (US$ in millions)
Net sales 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  34,755  25,233  25,756  24,468 
Receivables, net 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  1,148  1,115  1,244  1,145 
Short-term Activity Ratio
Receivables turnover1 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 94.92 87.91 89.77 96.00
Benchmarks
Receivables Turnover, Competitors2
eBay Inc. 15.20 13.62 15.10 15.09 13.77 13.75 14.54 13.77 14.93 14.79 15.30 15.17 14.23 13.99 14.47 13.88 18.81 20.31 22.33 22.46
Home Depot Inc. 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 44.65 50.35 45.88 56.05 50.72 49.28 43.35 56.37
Netflix Inc.
TJX Cos. Inc. 112.54 92.44 105.97 99.83 109.62 99.38 111.01 105.37 128.21 106.64 111.30 112.28 129.98 110.59 114.58 111.79 135.99 109.54 116.26 108.39 130.53
Walmart Inc. 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 95.89 91.39 82.93 71.15 78.86 77.64 77.74 70.85

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Receivables turnover = (Net salesQ4 2019 + Net salesQ3 2019 + Net salesQ2 2019 + Net salesQ1 2019) ÷ Receivables, net
= (46,448 + 33,964 + 34,628 + 34,311) ÷ 1,535 = 97.30

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.

Payables Turnover

Costco Wholesale Corp., payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data (US$ in millions)
Merchandise costs 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  31,037  22,554  23,043  21,824 
Accounts payable 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  8,491  8,361  7,707  9,199 
Short-term Activity Ratio
Payables turnover1 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 11.36 12.15 10.22 11.60
Benchmarks
Payables Turnover, Competitors2
Amazon.com Inc. 4.37 4.11 4.47 3.64 4.30 4.61 4.78 3.23 3.93 4.48 4.86 3.49 4.45 4.91 5.01 3.51 4.71 5.31 5.38 3.81
eBay Inc. 8.36 8.11 9.66 8.33 10.46 9.10 8.99 6.73 8.35 7.44 6.91 7.09 7.05 6.24 6.68 5.07 16.45 10.42 12.19 14.29
Home Depot Inc. 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 7.86 7.46 6.83 9.34 7.73 7.35 6.69 8.87
Lowe’s Cos. Inc. 5.85 5.13 5.22 4.53 6.86 5.09 5.15 4.41 6.40 5.21 5.18 4.45 6.84 5.18 5.28 4.63 7.16 5.59 5.75 4.97 6.98
Netflix Inc. 26.36 25.19 23.98 17.70 21.16 19.64 19.04 21.30 23.91 24.68 21.43 19.27 19.68 21.90 21.19 18.11 20.81 19.54 20.62 18.62
Target Corp. 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 5.84 7.44 7.57 6.61 5.82 7.36 7.88 6.66
TJX Cos. Inc. 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 8.01 9.43 9.76 10.35 8.01 9.40 10.15 11.07
Walmart Inc. 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 8.95 9.80 9.80 9.50 9.18 9.81 9.87 9.57

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Payables turnover = (Merchandise costsQ4 2019 + Merchandise costsQ3 2019 + Merchandise costsQ2 2019 + Merchandise costsQ1 2019) ÷ Accounts payable
= (41,310 + 30,233 + 30,720 + 30,623) ÷ 11,679 = 11.38

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 declined from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Working Capital Turnover

Costco Wholesale Corp., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data (US$ in millions)
Current assets 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  17,588  17,533  16,634  17,473 
Less: Current liabilities 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  14,412  14,687  13,884  14,933 
Working capital 248  (547) (802) 481  363  282  (14) (463) (178) (4,138) (1,400) (591) (357) (457) 96  565  759  898  (191) 3,137  3,176  2,846  2,750  2,540 
 
Net sales 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  34,755  25,233  25,756  24,468 
Short-term Activity Ratio
Working capital turnover1 602.22 294.44 381.36 483.61 1,194.83 201.79 149.76 126.31 35.71 34.70
Benchmarks
Working Capital Turnover, Competitors2
Amazon.com Inc. 38.37 35.44 42.11 34.71 48.44 56.56 69.39 76.87 107.01 308.26 69.18 69.20 60.63 45.82 48.76 41.56 45.89 38.65 33.50 27.48
eBay Inc. 7.12 6.64 4.99 4.02 3.54 2.86 2.37 2.28 2.00 1.45 2.23 1.79 1.48 1.14 1.14 1.52 2.91 1.17 1.76 1.99
Home Depot Inc. 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 32.97 27.27 85.23 20.62 18.20 14.27 18.68 17.40
Lowe’s Cos. Inc. 1,031.26 78.17 266.87 101.51 254.28 166.37 112.95 2,500.65 657.58 363.64 25.59 856.14 250.55 76.81 41.74 51.43 47.22 37.62
Netflix Inc. 4.93 6.12 4.25 7.04 5.31 10.13 6.46 12.69 7.79 10.45 5.71 4.45 3.56 2.89 2.57 2.30 4.31
Target Corp. 352.16 143.21 37.77 48.93 54.91 42.15 28.66 30.89 231.26 332.05
TJX Cos. Inc. 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 11.57 11.34 10.77 10.44 10.34 10.18 10.96 10.75
Walmart Inc.

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Working capital turnover = (Net salesQ4 2019 + Net salesQ3 2019 + Net salesQ2 2019 + Net salesQ1 2019) ÷ Working capital
= (46,448 + 33,964 + 34,628 + 34,311) ÷ 248 = 602.22

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.

Average Inventory Processing Period

Costco Wholesale Corp., average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data
Inventory turnover 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 11.39 11.79 10.37 11.64
Short-term Activity Ratio (no. days)
Average inventory processing period1 31 32 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 32 31 35 31
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Amazon.com Inc. 44 46 42 45 44 42 42 52 49 44 42 47 47 44 47 52 48 41 42 48
Home Depot Inc. 72 78 75 78 70 75 73 79 74 79 74 81 74 80 77 81 75 82 81 87 78
Lowe’s Cos. Inc. 95 95 92 105 92 100 93 102 90 98 97 103 90 100 94 104 89 99 95 109 95
Target Corp. 65 85 63 61 62 78 61 60 62 74 63 60 60 73 58 61 63 71 56 56 63
TJX Cos. Inc. 60 73 61 61 60 71 58 57 56 69 62 63 61 75 64 61 57 71 61 59 55
Walmart Inc. 42 48 40 42 43 50 44 44 43 50 44 45 45 51 45 46 45 52 46 46 46

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.66 = 31

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.

Average Receivable Collection Period

Costco Wholesale Corp., average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data
Receivables turnover 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 94.92 87.91 89.77 96.00
Short-term Activity Ratio (no. days)
Average receivable collection period1 4 4 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 4 4 4 4
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
eBay Inc. 24 27 24 24 26 27 25 27 24 25 24 24 26 26 25 26 19 18 16 16
Home Depot Inc. 7 8 8 8 7 8 8 8 8 8 8 8 8 8 7 8 7 7 7 8 6
Netflix Inc.
TJX Cos. Inc. 3 4 3 4 3 4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Walmart Inc. 4 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 97.30 = 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

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data
Average inventory processing period 31 32 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 32 31 35 31
Average receivable collection period 4 4 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 4 4 4 4
Short-term Activity Ratio
Operating cycle1 35 36 37 40 37 36 38 40 36 37 38 43 36 36 37 41 36 36 35 39 35
Benchmarks
Operating Cycle, Competitors2
Home Depot Inc. 79 86 83 86 77 83 81 87 82 87 82 89 82 88 84 89 82 89 88 95 84
TJX Cos. Inc. 63 77 64 65 63 75 61 60 59 72 65 66 64 78 67 64 60 74 64 62 58
Walmart Inc. 46 52 44 45 47 54 48 48 47 54 48 49 49 55 49 50 50 57 51 51 51

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 31 + 4 = 35

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)

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data
Payables turnover 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 11.36 12.15 10.22 11.60
Short-term Activity Ratio (no. days)
Average payables payment period1 32 32 31 38 33 32 31 38 31 32 30 39 27 31 29 37 33 32 30 36 31
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Amazon.com Inc. 84 89 82 100 85 79 76 113 93 81 75 105 82 74 73 104 78 69 68 96
eBay Inc. 44 45 38 44 35 40 41 54 44 49 53 51 52 59 55 72 22 35 30 26
Home Depot Inc. 40 48 50 53 40 48 49 53 41 48 50 53 41 46 49 53 39 47 50 55 41
Lowe’s Cos. Inc. 62 71 70 81 53 72 71 83 57 70 70 82 53 70 69 79 51 65 63 73 52
Netflix Inc. 14 14 15 21 17 19 19 17 15 15 17 19 19 17 17 20 18 19 18 20
Target Corp. 67 82 63 57 62 74 56 49 54 61 49 45 52 63 49 48 55 63 50 46 55
TJX Cos. Inc. 35 44 37 35 36 45 35 33 35 42 36 35 36 46 39 37 35 46 39 36 33
Walmart Inc. 45 47 41 43 45 47 42 42 42 44 40 38 39 41 37 37 38 40 37 37 38

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.38 = 32

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.

Cash Conversion Cycle

Costco Wholesale Corp., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel LibreOffice Calc
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 Aug 31, 2014 May 11, 2014 Feb 16, 2014 Nov 24, 2013
Selected Financial Data
Average inventory processing period 31 32 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 32 31 35 31
Average receivable collection period 4 4 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 4 4 4 4
Average payables payment period 32 32 31 38 33 32 31 38 31 32 30 39 27 31 29 37 33 32 30 36 31
Short-term Activity Ratio
Cash conversion cycle1 3 4 6 2 4 4 7 2 5 5 8 4 9 5 8 4 3 4 5 3 4
Benchmarks
Cash Conversion Cycle, Competitors2
Home Depot Inc. 39 38 33 33 37 35 32 34 41 39 32 36 41 42 35 36 43 42 38 40 43
TJX Cos. Inc. 28 33 27 30 27 30 26 27 24 30 29 31 28 32 28 27 25 28 25 26 25
Walmart Inc. 1 5 3 2 2 7 6 6 5 10 8 11 10 14 12 13 12 17 14 14 13

Based on: 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), 10-K (filing date: 2014-10-15), 10-Q (filing date: 2014-06-05), 10-Q (filing date: 2014-03-14), 10-Q (filing date: 2013-12-20).

1 Q4 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 31 + 432 = 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.