What is Costco asset turnover?
of August 31, 2019))/ 2 = (40830+ 45400)/ 2 = 43115] The asset turnover ratio of Costco is 3.54. It indicates that Costco is making 3.54 dollars of sales for every dollar invested in assets.
Does Costco have high inventory turnover?
Costco’s inventory turnover ratio is approximately 11.84 for the most recently reported fiscal year, (ending August 31, 2020), meaning it roughly turns over its entire inventory monthly. 7 This indicates high inventory quality and relatively efficient ordering management.
What is Costco accounts receivable turnover?
Average collection period, for Costco Wholesale’s accouts receivable remained unchanged at 3 days, in the May 08 2022 quarter. Within Retail sector Costco Wholesale Corp achieved highest receivable turnover ratio….
| Receivable Turnover Company Ranking | |
|---|---|
| Within: | No. |
| Retail Sector | # 1 |
| Overall Market | # 1 |
What are Costco’s total assets?
Costco total assets for 2021 were $59.268B, a 6.68% increase from 2020. Costco total assets for 2020 were $55.556B, a 22.37% increase from 2019. Costco total assets for 2019 were $45.4B, a 11.19% increase from 2018.
What does asset turnover measure?
The asset turnover ratio measures the efficiency of a company’s assets in generating revenue or sales. It compares the dollar amount of sales (revenues) to its total assets as an annualized percentage. Thus, to calculate the asset turnover ratio, divide net sales or revenue by the average total assets.
Why is Costco’s inventory turnover so high?
Costco explains this clearly in its financial filings, stating that “to the extent that sales increase and inventory turnover becomes more rapid, more inventory is financed through payment terms provided by suppliers rather than by our working capital.” In other words, higher inventory turnover enables Costco to rely …
Why is Costco better than its competitors?
Costco is worth paying up for The company’s competitive advantages, such as its membership model, private label, and low pricing strategy, have led to a stable economic moat that investors can rely on regardless of market conditions.
What is Costco’s current ratio?
1.03
Current ratio can be defined as a liquidity ratio that measures a company’s ability to pay short-term obligations. Costco current ratio for the three months ending February 28, 2022 was 1.03.
Is Costco’s current ratio good?
The current ratio had a small increase from 0.99 to 1.02 from 2017 to 2018. This indicates that the company is capable of meeting its short-term debt. Overall the current ratio for Costco is well below the industry standard average of 1.14.
What is Costco’s debt to equity ratio?
Costco Wholesale Debt to Equity Ratio: 0.3429 for Feb. 28, 2022.
What is Costco’s WACC?
6.82%
As of today (2022-06-14), Costco Wholesale’s weighted average cost of capital is 6.82%.
What is a good asset turnover ratio?
In the retail sector, an asset turnover ratio of 2.5 or more could be considered good, while a company in the utilities sector is more likely to aim for an asset turnover ratio that’s between 0.25 and 0.5.
What industry has high asset turnover?
For example, the retail sector yields the highest asset turnover ratio. According to a survey the retail sector scored an asset turnover ratio of 2.05 in 2014. Retail companies generally have small asset bases, but high sales volumes.
What is Costco’s business model?
As said, Costco uses a membership-only warehouse club business model, which means consumers pay a membership fee to access the low-cost products available at Costco stores.
What are Costco’s weaknesses?
Weaknesses of Costco The consumer can only purchase the goods in bulk, individual choices are limited. The availability of Costo warehouses is less as compared to different other retail shops. Due to the low-price strategy, the profit margin is low.
What is Costco’s Ebitda?
Costco EBITDA for the twelve months ending February 28, 2022 was $9.272B, a 22.24% increase year-over-year. Costco 2021 annual EBITDA was $8.489B, a 19.9% increase from 2020. Costco 2020 annual EBITDA was $7.08B, a 13.66% increase from 2019. Costco 2019 annual EBITDA was $6.229B, a 5.27% increase from 2018.
Does Costco have a high debt to equity ratio?
2022 was 0.45. A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. During the past 13 years, the highest Debt-to-Equity Ratio of Costco Wholesale was 0.87.
What is Costco’s desired debt and equity position?
28, 2022.