Costco Wholesale Corp. (COST)


Short-term (Operating) Activity Analysis
Quarterly Data

Difficulty: Beginner


Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Turnover Ratios
Inventory turnover 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 11.30 11.41 9.97 11.65
Receivables turnover 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 96.17 84.84 90.95 85.65
Payables turnover 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 11.46 12.24 10.11 11.68
Working capital turnover 294.44 381.36 483.61 1,194.83 201.79 149.76 126.31 35.71 34.70 37.68 38.38 41.00 39.83
Average No. of Days
Average inventory processing period 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 32 31 35 31 32 32 37 31
Add: Average receivable collection period 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 4 4 4 4 4 4 4 4
Operating cycle 37 40 37 36 38 40 36 37 38 43 36 36 37 41 36 36 35 39 35 36 36 41 35
Less: Average payables payment period 31 38 33 32 31 38 31 32 30 39 27 31 29 37 33 32 30 36 31 32 30 36 31
Cash conversion cycle 6 2 4 4 7 2 5 5 8 4 9 5 8 4 3 4 5 3 4 4 6 5 4

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Costco Wholesale Corp.’s inventory turnover deteriorated from Q4 2018 to Q1 2019 but then improved from Q1 2019 to Q2 2019 exceeding Q4 2018 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Costco Wholesale Corp.’s receivables turnover deteriorated from Q4 2018 to Q1 2019 and from Q1 2019 to Q2 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Costco Wholesale Corp.’s payables turnover declined from Q4 2018 to Q1 2019 but then increased from Q1 2019 to Q2 2019 exceeding Q4 2018 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Costco Wholesale Corp.’s working capital turnover deteriorated from Q4 2018 to Q1 2019 and from Q1 2019 to Q2 2019.

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 average inventory processing period deteriorated from Q4 2018 to Q1 2019 but then improved from Q1 2019 to Q2 2019 exceeding Q4 2018 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 average payables payment period increased from Q4 2018 to Q1 2019 but then declined significantly from Q1 2019 to Q2 2019.
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 Q4 2018 to Q1 2019 but then deteriorated significantly from Q1 2019 to Q2 2019.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data (USD $ in millions)
Merchandise costs 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  28,418  21,038  21,766  20,726 
Merchandise inventories 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  7,894  7,635  7,582  8,152 
Ratio
Inventory turnover1 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 11.30 11.41 9.97 11.65

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Inventory turnover = (Merchandise costsQ2 2019 + Merchandise costsQ1 2019 + Merchandise costsQ4 2018 + Merchandise costsQ3 2018) ÷ Merchandise inventories
= (30,720 + 30,623 + 38,671 + 28,131) ÷ 11,356 = 11.28

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Costco Wholesale Corp.’s inventory turnover deteriorated from Q4 2018 to Q1 2019 but then improved from Q1 2019 to Q2 2019 exceeding Q4 2018 level.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data (USD $ in millions)
Net sales 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  31,771  23,552  24,343  23,204 
Receivables, net 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  1,201  1,134  1,300  1,175 
Ratio
Receivables turnover1 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 96.17 84.84 90.95 85.65

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Receivables turnover = (Net salesQ2 2019 + Net salesQ1 2019 + Net salesQ4 2018 + Net salesQ3 2018) ÷ Receivables, net
= (34,628 + 34,311 + 43,414 + 31,624) ÷ 1,995 = 72.17

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Costco Wholesale Corp.’s receivables turnover deteriorated from Q4 2018 to Q1 2019 and from Q1 2019 to Q2 2019.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data (USD $ in millions)
Merchandise costs 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  28,418  21,038  21,766  20,726 
Accounts payable 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  7,872  7,788  7,441  8,825 
Ratio
Payables turnover1 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 11.46 12.24 10.11 11.68

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Payables turnover = (Merchandise costsQ2 2019 + Merchandise costsQ1 2019 + Merchandise costsQ4 2018 + Merchandise costsQ3 2018) ÷ Accounts payable
= (30,720 + 30,623 + 38,671 + 28,131) ÷ 10,711 = 11.96

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Costco Wholesale Corp.’s payables turnover declined from Q4 2018 to Q1 2019 but then increased from Q1 2019 to Q2 2019 exceeding Q4 2018 level.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data (USD $ in millions)
Current assets 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  15,840  15,863  15,110  15,405 
Less: Current liabilities 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  13,257  13,509  13,045  14,135 
Working capital (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  2,583  2,354  2,065  1,270 
Net sales 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  31,771  23,552  24,343  23,204 
Ratio
Working capital turnover1 294.44 381.36 483.61 1,194.83 201.79 149.76 126.31 35.71 34.70 37.68 38.38 41.00 39.83

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Working capital turnover = (Net salesQ2 2019 + Net salesQ1 2019 + Net salesQ4 2018 + Net salesQ3 2018) ÷ Working capital
= (34,628 + 34,311 + 43,414 + 31,624) ÷ -802 =

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Costco Wholesale Corp.’s working capital turnover deteriorated from Q4 2018 to Q1 2019 and from Q1 2019 to Q2 2019.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data
Inventory turnover 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 11.30 11.41 9.97 11.65
Ratio (no. of days)
Average inventory processing period1 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 32 31 35 31 32 32 37 31

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.28 = 32

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 average inventory processing period deteriorated from Q4 2018 to Q1 2019 but then improved from Q1 2019 to Q2 2019 exceeding Q4 2018 level.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data
Receivables turnover 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 96.17 84.84 90.95 85.65
Ratio (no. of days)
Average receivable collection period1 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 4 4 4 4 4 4 4 4

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 72.17 = 5

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. of days

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data
Average inventory processing period 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 32 31 35 31 32 32 37 31
Average receivable collection period 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 4 4 4 4 4 4 4 4
Ratio
Operating cycle1 37 40 37 36 38 40 36 37 38 43 36 36 37 41 36 36 35 39 35 36 36 41 35

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Operating cycle = Average inventory processing period + Average receivable collection period
= 32 + 5 = 37

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
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data
Payables turnover 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 11.46 12.24 10.11 11.68
Ratio (no. of days)
Average payables payment period1 31 38 33 32 31 38 31 32 30 39 27 31 29 37 33 32 30 36 31 32 30 36 31

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.96 = 31

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 average payables payment period increased from Q4 2018 to Q1 2019 but then declined significantly from Q1 2019 to Q2 2019.

Cash Conversion Cycle

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

No. of days

Microsoft Excel LibreOffice Calc
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 Sep 1, 2013 May 12, 2013 Feb 17, 2013 Nov 25, 2012
Selected Financial Data
Average inventory processing period 32 35 33 32 33 36 32 33 33 38 32 32 32 37 32 32 31 35 31 32 32 37 31
Average receivable collection period 5 5 4 4 5 4 4 4 5 5 4 4 5 4 4 4 4 4 4 4 4 4 4
Average payables payment period 31 38 33 32 31 38 31 32 30 39 27 31 29 37 33 32 30 36 31 32 30 36 31
Ratio
Cash conversion cycle1 6 2 4 4 7 2 5 5 8 4 9 5 8 4 3 4 5 3 4 4 6 5 4

Based on: 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), 10-K (filing date: 2013-10-16), 10-Q (filing date: 2013-06-11), 10-Q (filing date: 2013-03-20), 10-Q (filing date: 2012-12-21).

Q2 2019 Calculations

1 Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 32 + 531 = 6

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 Q4 2018 to Q1 2019 but then deteriorated significantly from Q1 2019 to Q2 2019.