Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

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

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Turnover Ratios
Inventory turnover 12.77 11.96 12.77 12.68 12.82 10.94 11.13 10.81 11.14 10.46 12.01 11.62 11.19 10.08 11.84 12.70 11.63 9.73 11.66 11.52 11.28 10.34 11.16
Receivables turnover 87.83 94.80 104.03 92.34 84.76 98.08 99.39 107.19 92.37 103.07 106.52 114.66 90.47 102.87 105.30 104.44 77.92 88.41 97.30 85.87 72.17 78.90 82.94
Payables turnover 12.46 10.57 12.16 12.28 12.56 11.07 11.17 10.80 10.74 9.06 10.49 10.45 10.79 8.83 10.23 12.93 12.45 9.31 11.38 11.49 11.96 9.61 10.96
Working capital turnover 72.76 103.53 89.52 126.82 209.37 319.10 183.50 202.13 391.97 3,000.81 49.82 63.59 153.67 400.20 602.22 294.44 381.36
Average No. Days
Average inventory processing period 29 31 29 29 28 33 33 34 33 35 30 31 33 36 31 29 31 37 31 32 32 35 33
Add: Average receivable collection period 4 4 4 4 4 4 4 3 4 4 3 3 4 4 3 3 5 4 4 4 5 5 4
Operating cycle 33 35 33 33 32 37 37 37 37 39 33 34 37 40 34 32 36 41 35 36 37 40 37
Less: Average payables payment period 29 35 30 30 29 33 33 34 34 40 35 35 34 41 36 28 29 39 32 32 31 38 33
Cash conversion cycle 4 0 3 3 3 4 4 3 3 -1 -2 -1 3 -1 -2 4 7 2 3 4 6 2 4

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Costco Wholesale Corp. inventory turnover ratio deteriorated from Q4 2023 to Q1 2024 but then improved from Q1 2024 to Q2 2024 not reaching Q4 2023 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Costco Wholesale Corp. receivables turnover ratio deteriorated from Q4 2023 to Q1 2024 and from Q1 2024 to Q2 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Costco Wholesale Corp. payables turnover ratio decreased from Q4 2023 to Q1 2024 but then increased from Q1 2024 to Q2 2024 exceeding Q4 2023 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.
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. number of days of payables outstanding increased from Q4 2023 to Q1 2024 but then decreased significantly from Q1 2024 to Q2 2024.
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. cash conversion cycle improved from Q4 2023 to Q1 2024 but then deteriorated significantly from Q1 2024 to Q2 2024.

Inventory Turnover

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

Microsoft Excel
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data (US$ in millions)
Merchandise costs 51,140 50,457 69,219 47,175 48,423 47,769 63,558 46,355 45,517 43,952 54,733 39,415 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
Merchandise inventories 17,075 18,001 16,651 16,324 16,081 18,571 17,907 17,623 16,485 16,942 14,215 13,975 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
Short-term Activity Ratio
Inventory turnover1 12.77 11.96 12.77 12.68 12.82 10.94 11.13 10.81 11.14 10.46 12.01 11.62 11.19 10.08 11.84 12.70 11.63 9.73 11.66 11.52 11.28 10.34 11.16
Benchmarks
Inventory Turnover, Competitors2
Target Corp. 6.29 6.51 6.09 4.73 5.19 5.09 5.39 4.86 6.22 6.49 6.21 4.94 6.78 6.65 6.10 4.80 5.95 5.95 5.61
Walmart Inc. 8.43 8.29 8.20 7.01 7.40 7.06 7.59 7.46 8.88 9.09 9.35 7.96 9.94 9.79 8.88 7.60 8.81 8.64 8.70

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Inventory turnover = (Merchandise costsQ2 2024 + Merchandise costsQ1 2024 + Merchandise costsQ4 2023 + Merchandise costsQ3 2023) ÷ Merchandise inventories
= (51,140 + 50,457 + 69,219 + 47,175) ÷ 17,075 = 12.77

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. inventory turnover ratio deteriorated from Q4 2023 to Q1 2024 but then improved from Q1 2024 to Q2 2024 not reaching Q4 2023 level.

Receivables Turnover

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

Microsoft Excel
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data (US$ in millions)
Net sales 57,331 56,717 77,430 52,604 54,239 53,437 70,764 51,612 50,937 49,417 61,441 44,376 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
Receivables, net 2,779 2,542 2,285 2,502 2,714 2,312 2,241 1,991 2,232 1,932 1,803 1,595 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
Short-term Activity Ratio
Receivables turnover1 87.83 94.80 104.03 92.34 84.76 98.08 99.39 107.19 92.37 103.07 106.52 114.66 90.47 102.87 105.30 104.44 77.92 88.41 97.30 85.87 72.17 78.90 82.94
Benchmarks
Receivables Turnover, Competitors2
Walmart Inc. 79.27 80.63 76.37 72.36 77.43 74.39 68.57 77.18 92.05 96.38 85.21 94.43 105.28 105.52 82.74 92.13 95.50 95.78 81.22

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Receivables turnover = (Net salesQ2 2024 + Net salesQ1 2024 + Net salesQ4 2023 + Net salesQ3 2023) ÷ Receivables, net
= (57,331 + 56,717 + 77,430 + 52,604) ÷ 2,779 = 87.83

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. receivables turnover ratio deteriorated from Q4 2023 to Q1 2024 and from Q1 2024 to Q2 2024.

Payables Turnover

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

Microsoft Excel
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data (US$ in millions)
Merchandise costs 51,140 50,457 69,219 47,175 48,423 47,769 63,558 46,355 45,517 43,952 54,733 39,415 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
Accounts payable 17,494 20,357 17,483 16,853 16,407 18,348 17,848 17,651 17,089 19,561 16,278 15,538 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
Short-term Activity Ratio
Payables turnover1 12.46 10.57 12.16 12.28 12.56 11.07 11.17 10.80 10.74 9.06 10.49 10.45 10.79 8.83 10.23 12.93 12.45 9.31 11.38 11.49 11.96 9.61 10.96
Benchmarks
Payables Turnover, Competitors2
Target Corp. 6.50 6.88 6.10 5.25 5.34 5.46 4.84 4.47 5.54 5.88 5.15 4.42 5.61 5.94 5.53 4.86 5.93 6.45 5.46
Walmart Inc. 8.45 8.70 8.63 7.93 8.18 8.17 7.76 7.50 8.55 8.75 8.55 7.62 8.81 9.15 8.40 7.87 8.48 8.57 8.19

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Payables turnover = (Merchandise costsQ2 2024 + Merchandise costsQ1 2024 + Merchandise costsQ4 2023 + Merchandise costsQ3 2023) ÷ Accounts payable
= (51,140 + 50,457 + 69,219 + 47,175) ÷ 17,494 = 12.46

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. payables turnover ratio decreased from Q4 2023 to Q1 2024 but then increased from Q1 2024 to Q2 2024 exceeding Q4 2023 level.

Working Capital Turnover

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

Microsoft Excel
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data (US$ in millions)
Current assets 32,146 40,080 35,879 34,289 34,330 34,150 32,696 33,008 32,565 33,850 29,505 27,916 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
Less: Current liabilities 34,688 36,768 33,583 31,708 32,516 33,067 31,998 31,845 31,545 33,342 29,441 27,982 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
Working capital (2,542) 3,312 2,296 2,581 1,814 1,083 698 1,163 1,020 508 64 (66) (256) (571) 3,276 2,475 1,008 378 248 (547) (802) 481 363 282 (14) (463)
 
Net sales 57,331 56,717 77,430 52,604 54,239 53,437 70,764 51,612 50,937 49,417 61,441 44,376 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
Short-term Activity Ratio
Working capital turnover1 72.76 103.53 89.52 126.82 209.37 319.10 183.50 202.13 391.97 3,000.81 49.82 63.59 153.67 400.20 602.22 294.44 381.36
Benchmarks
Working Capital Turnover, Competitors2
Target Corp. 122.42 72.70 146.43 91.95 48.30 389.66
Walmart Inc.

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Working capital turnover = (Net salesQ2 2024 + Net salesQ1 2024 + Net salesQ4 2023 + Net salesQ3 2023) ÷ Working capital
= (57,331 + 56,717 + 77,430 + 52,604) ÷ -2,542 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

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

Microsoft Excel
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data
Inventory turnover 12.77 11.96 12.77 12.68 12.82 10.94 11.13 10.81 11.14 10.46 12.01 11.62 11.19 10.08 11.84 12.70 11.63 9.73 11.66 11.52 11.28 10.34 11.16
Short-term Activity Ratio (no. days)
Average inventory processing period1 29 31 29 29 28 33 33 34 33 35 30 31 33 36 31 29 31 37 31 32 32 35 33
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Target Corp. 58 56 60 77 70 72 68 75 59 56 59 74 54 55 60 76 61 61 65
Walmart Inc. 43 44 45 52 49 52 48 49 41 40 39 46 37 37 41 48 41 42 42

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 12.77 = 29

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
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data
Receivables turnover 87.83 94.80 104.03 92.34 84.76 98.08 99.39 107.19 92.37 103.07 106.52 114.66 90.47 102.87 105.30 104.44 77.92 88.41 97.30 85.87 72.17 78.90 82.94
Short-term Activity Ratio (no. days)
Average receivable collection period1 4 4 4 4 4 4 4 3 4 4 3 3 4 4 3 3 5 4 4 4 5 5 4
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Walmart Inc. 5 5 5 5 5 5 5 5 4 4 4 4 3 3 4 4 4 4 4

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 87.83 = 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
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data
Average inventory processing period 29 31 29 29 28 33 33 34 33 35 30 31 33 36 31 29 31 37 31 32 32 35 33
Average receivable collection period 4 4 4 4 4 4 4 3 4 4 3 3 4 4 3 3 5 4 4 4 5 5 4
Short-term Activity Ratio
Operating cycle1 33 35 33 33 32 37 37 37 37 39 33 34 37 40 34 32 36 41 35 36 37 40 37
Benchmarks
Operating Cycle, Competitors2
Walmart Inc. 48 49 50 57 54 57 53 54 45 44 43 50 40 40 45 52 45 46 46

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 29 + 4 = 33

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
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data
Payables turnover 12.46 10.57 12.16 12.28 12.56 11.07 11.17 10.80 10.74 9.06 10.49 10.45 10.79 8.83 10.23 12.93 12.45 9.31 11.38 11.49 11.96 9.61 10.96
Short-term Activity Ratio (no. days)
Average payables payment period1 29 35 30 30 29 33 33 34 34 40 35 35 34 41 36 28 29 39 32 32 31 38 33
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Target Corp. 56 53 60 70 68 67 75 82 66 62 71 83 65 61 66 75 62 57 67
Walmart Inc. 43 42 42 46 45 45 47 49 43 42 43 48 41 40 43 46 43 43 45

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.46 = 29

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. number of days of payables outstanding increased from Q4 2023 to Q1 2024 but then decreased significantly from Q1 2024 to Q2 2024.

Cash Conversion Cycle

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

No. days

Microsoft Excel
Feb 18, 2024 Nov 26, 2023 Sep 3, 2023 May 7, 2023 Feb 12, 2023 Nov 20, 2022 Aug 28, 2022 May 8, 2022 Feb 13, 2022 Nov 21, 2021 Aug 29, 2021 May 9, 2021 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
Selected Financial Data
Average inventory processing period 29 31 29 29 28 33 33 34 33 35 30 31 33 36 31 29 31 37 31 32 32 35 33
Average receivable collection period 4 4 4 4 4 4 4 3 4 4 3 3 4 4 3 3 5 4 4 4 5 5 4
Average payables payment period 29 35 30 30 29 33 33 34 34 40 35 35 34 41 36 28 29 39 32 32 31 38 33
Short-term Activity Ratio
Cash conversion cycle1 4 0 3 3 3 4 4 3 3 -1 -2 -1 3 -1 -2 4 7 2 3 4 6 2 4
Benchmarks
Cash Conversion Cycle, Competitors2
Walmart Inc. 5 7 8 11 9 12 6 5 2 2 0 2 -1 0 2 6 2 3 1

Based on: 10-Q (reporting date: 2024-02-18), 10-Q (reporting date: 2023-11-26), 10-K (reporting date: 2023-09-03), 10-Q (reporting date: 2023-05-07), 10-Q (reporting date: 2023-02-12), 10-Q (reporting date: 2022-11-20), 10-K (reporting date: 2022-08-28), 10-Q (reporting date: 2022-05-08), 10-Q (reporting date: 2022-02-13), 10-Q (reporting date: 2021-11-21), 10-K (reporting date: 2021-08-29), 10-Q (reporting date: 2021-05-09), 10-Q (reporting date: 2021-02-14), 10-Q (reporting date: 2020-11-22), 10-K (reporting date: 2020-08-30), 10-Q (reporting date: 2020-05-10), 10-Q (reporting date: 2020-02-16), 10-Q (reporting date: 2019-11-24), 10-K (reporting date: 2019-09-01), 10-Q (reporting date: 2019-05-12), 10-Q (reporting date: 2019-02-17), 10-Q (reporting date: 2018-11-25), 10-K (reporting date: 2018-09-02), 10-Q (reporting date: 2018-05-13), 10-Q (reporting date: 2018-02-18), 10-Q (reporting date: 2017-11-26).

1 Q2 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 29 + 429 = 4

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. cash conversion cycle improved from Q4 2023 to Q1 2024 but then deteriorated significantly from Q1 2024 to Q2 2024.