Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Costco Wholesale Corp. (NASDAQ:COST)

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

Beginner level

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)

Microsoft Excel LibreOffice Calc
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
Turnover Ratios
Inventory turnover 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 — — —
Receivables turnover 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 — — —
Payables turnover 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 — — —
Working capital turnover 49.82 63.59 153.67 400.20 602.22 — — 294.44 381.36 483.61 — — — — — — — — 1,194.83 201.79 149.76 — — —
Average No. Days
Average inventory processing period 31 29 31 37 31 32 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 — — —
Add: Average receivable collection period 3 3 5 4 4 4 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 — — —
Operating cycle 34 32 36 41 35 36 37 40 37 36 38 40 36 37 38 43 36 36 37 41 36 — — —
Less: Average payables payment period 36 28 29 39 32 32 31 38 33 32 31 38 31 32 30 39 27 31 29 37 33 — — —
Cash conversion cycle -2 4 7 2 3 4 6 2 4 4 7 2 5 5 8 4 9 5 8 4 3 — — —

Based on: 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 improved from Q2 2020 to Q3 2020 but then slightly deteriorated from Q3 2020 to Q4 2020 not reaching Q2 2020 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Costco Wholesale Corp.’s receivables turnover ratio improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Costco Wholesale Corp.’s payables turnover ratio increased from Q2 2020 to Q3 2020 but then decreased significantly from Q3 2020 to Q4 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Costco Wholesale Corp.’s working capital turnover ratio deteriorated from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 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.
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 Q2 2020 to Q3 2020 but then increased from Q3 2020 to Q4 2020 exceeding Q2 2020 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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
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 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 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 11.84 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. — — 9.81 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 7.82 8.25 7.84 7.00 — — —
Dollar General Corp. 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 4.46 4.49 4.71 4.71 — — —
Home Depot Inc. 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 4.55 4.72 4.48 4.89 — — —
Lowe’s Cos. Inc. 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 3.65 3.88 3.50 4.11 — — —
Target Corp. 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 5.01 6.25 5.97 5.83 — — —
TJX Cos. Inc. 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 4.86 5.68 5.95 6.46 — — —
Walmart Inc. 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 7.16 8.11 7.88 8.09 — — —

Based on: 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 Q4 2020 Calculation
Inventory turnover = (Merchandise costsQ4 2020 + Merchandise costsQ3 2020 + Merchandise costsQ2 2020 + Merchandise costsQ1 2020) ÷ Merchandise inventories
= (46,401 + 32,249 + 34,056 + 32,233) ÷ 12,242 = 11.84

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 Q2 2020 to Q3 2020 but then slightly deteriorated from Q3 2020 to Q4 2020 not reaching Q2 2020 level.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
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 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 1,550  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 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. 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 44.65 50.35 45.88 56.05 — — —
TJX Cos. Inc. 108.00 91.76 106.12 100.60 112.54 92.44 105.97 99.83 109.62 99.38 111.01 105.37 128.21 106.64 111.30 112.28 129.98 110.59 114.58 111.79 135.99 — — —
Walmart Inc. 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 95.89 91.39 82.93 71.15 — — —

Based on: 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 Q4 2020 Calculation
Receivables turnover = (Net salesQ4 2020 + Net salesQ3 2020 + Net salesQ2 2020 + Net salesQ1 2020) ÷ Receivables, net
= (52,277 + 36,451 + 38,256 + 36,236) ÷ 1,550 = 105.30

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. Costco Wholesale Corp.’s receivables turnover ratio improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
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 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 14,172  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 10.23 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. — — 3.77 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 4.45 4.91 5.01 3.51 — — —
Dollar General Corp. 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 9.41 8.85 9.31 9.44 — — —
Home Depot Inc. 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 7.86 7.46 6.83 9.34 — — —
Lowe’s Cos. Inc. 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 5.18 5.28 4.63 7.16 — — —
Target Corp. 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 5.84 7.44 7.57 6.61 — — —
TJX Cos. Inc. 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 8.01 9.43 9.76 10.35 — — —
Walmart Inc. 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 8.95 9.80 9.80 9.50 — — —

Based on: 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 Q4 2020 Calculation
Payables turnover = (Merchandise costsQ4 2020 + Merchandise costsQ3 2020 + Merchandise costsQ2 2020 + Merchandise costsQ1 2020) ÷ Accounts payable
= (46,401 + 32,249 + 34,056 + 32,233) ÷ 14,172 = 10.23

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 Q2 2020 to Q3 2020 but then decreased significantly from Q3 2020 to Q4 2020.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
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 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 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 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 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. — — 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 60.63 45.82 48.76 41.56 — — —
Dollar General Corp. 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 13.37 15.49 16.47 12.24 — — —
Home Depot Inc. 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 32.97 27.27 85.23 20.62 — — —
Lowe’s Cos. Inc. 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 25.59 856.14 250.55 — — 76.81 — — —
Target Corp. — — — — — — — — — — — — — 352.16 143.21 37.77 48.93 54.91 42.15 28.66 30.89 — — —
TJX Cos. Inc. 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 11.57 11.34 10.77 10.44 — — —
Walmart Inc. — — — — — — — — — — — — — — — — — — — — — — — —

Based on: 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 Q4 2020 Calculation
Working capital turnover = (Net salesQ4 2020 + Net salesQ3 2020 + Net salesQ2 2020 + Net salesQ1 2020) ÷ Working capital
= (52,277 + 36,451 + 38,256 + 36,236) ÷ 3,276 = 49.82

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 deteriorated from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
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 11.84 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 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 39 45 44 46 42 45 44 42 42 52 49 44 42 47 47 44 47 52 — — —
Dollar General Corp. 89 87 87 82 84 83 84 79 81 81 80 78 78 87 82 78 80 82 81 78 77 — — —
Home Depot Inc. 73 78 74 78 72 78 75 78 70 75 73 79 74 79 74 81 74 80 77 81 75 — — —
Lowe’s Cos. Inc. 98 102 102 112 95 94 92 105 92 100 93 102 90 98 97 103 90 100 94 104 89 — — —
Target Corp. 60 76 61 61 65 85 63 61 62 78 61 60 62 74 63 60 60 73 58 61 63 — — —
TJX Cos. Inc. 60 79 65 65 60 73 61 61 60 71 58 57 56 69 62 63 61 75 64 61 57 — — —
Walmart Inc. 41 48 41 42 42 48 40 42 43 50 44 44 43 50 44 45 45 51 45 46 45 — — —

Based on: 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 Q4 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.84 = 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
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 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 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. 7 7 8 8 7 8 8 8 7 8 8 8 8 8 8 8 8 8 7 8 7 — — —
TJX Cos. Inc. 3 4 3 4 3 4 3 4 3 4 3 3 3 3 3 3 3 3 3 3 3 — — —
Walmart Inc. 4 4 4 4 4 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 5 — — —

Based on: 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 Q4 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 105.30 = 3

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
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 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 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 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. 80 85 82 86 79 86 83 86 77 83 81 87 82 87 82 89 82 88 84 89 82 — — —
TJX Cos. Inc. 63 83 68 69 63 77 64 65 63 75 61 60 59 72 65 66 64 78 67 64 60 — — —
Walmart Inc. 45 52 45 46 46 52 44 45 47 54 48 48 47 54 48 49 49 55 49 50 50 — — —

Based on: 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 Q4 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 31 + 3 = 34

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
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 10.23 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 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. — — 97 83 104 84 89 82 100 85 79 76 113 93 81 75 105 82 74 73 104 — — —
Dollar General Corp. 54 55 54 49 49 49 49 44 45 45 43 38 37 48 43 37 39 39 41 39 39 — — —
Home Depot Inc. 39 46 48 52 40 48 50 53 40 48 49 53 41 48 50 53 41 46 49 53 39 — — —
Lowe’s Cos. Inc. 57 66 70 86 62 71 70 81 53 72 71 83 57 70 70 82 53 70 69 79 51 — — —
Target Corp. 66 75 62 57 67 82 63 57 62 74 56 49 54 61 49 45 52 63 49 48 55 — — —
TJX Cos. Inc. 33 43 33 33 35 44 37 35 36 45 35 33 35 42 36 35 36 46 39 37 35 — — —
Walmart Inc. 43 46 43 43 45 47 41 43 45 47 42 42 42 44 40 38 39 41 37 37 38 — — —

Based on: 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 Q4 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.23 = 36

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 Q2 2020 to Q3 2020 but then increased from Q3 2020 to Q4 2020 exceeding Q2 2020 level.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
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 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 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 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 -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. 41 39 34 34 39 38 33 33 37 35 32 34 41 39 32 36 41 42 35 36 43 — — —
TJX Cos. Inc. 30 40 35 36 28 33 27 30 27 30 26 27 24 30 29 31 28 32 28 27 25 — — —
Walmart Inc. 2 6 2 3 1 5 3 2 2 7 6 6 5 10 8 11 10 14 12 13 12 — — —

Based on: 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 Q4 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 31 + 3 – 36 = -2

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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.