Costco Wholesale (COST) ROCE %

: 26.57% (As of Feb. 2024)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Costco Wholesale's annualized ROCE % for the quarter that ended in Feb. 2024 was 26.57%.

Costco Wholesale ROCE % Historical Data

The historical data trend for Costco Wholesale's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Costco Wholesale Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

ROCE %

22.82

20.92

22.63

25.80

25.59

Costco Wholesale Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %																23.50	20.84	34.28	23.70	26.57

Costco Wholesale ROCE % Calculation

Costco Wholesale's annualized ROCE % for the fiscal year that ended in Aug. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	8647	/	( ( (64166 - 31998)	+	(68994 - 33583) )	/ 2 )
	=	8647	/	( (32168	+	35411)	/ 2 )
	=	8647	/	33789.5
	=	25.59 %

Costco Wholesale's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	9112	/	( ( (73723 - 36768)	+	(66323 - 34688) )	/ 2 )
	=	9112	/	( ( 36955	+	31635 )	/ 2 )
	=	9112	/	34295
	=	26.57 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2024) EBIT data.

Costco Wholesale (NAS:COST) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Costco Wholesale ROCE % Related Terms

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Costco Wholesale (COST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Costco Wholesale Corp (NAS:COST) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

COST:Mexico CTO0:Germany CTO:Germany CTO:Germany CTO:Germany CTO:Germany COST:Chile COST:Canada COWC34:Brazil COST:Argentina

Address

999 Lake Drive, Issaquah, WA, USA, 98027

Website

https://www.costco.com

Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates nearly 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.

Executives

W Craig Jelinek	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
Yoram Rubananko	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
Caton Frates	officer: Executive Vice President	999 LAKE DRIVE, ISSAQUAH WA 98027
Daniel M. Hines	other: Principal Acctg Officer	999 LAKE DRIVE, ISSAQUAH WA 98027
Richard A Galanti	director, officer: Executive VP and CFO	999 LAKE DRIVE, ISSAQUAH WA 98027
Pierre Riel	officer: EVP	999 LAKE DRIVE, ISSAQUAH WA 98027
Russell D Miller	officer: Executive Vice President	999 LAKE DRIVE, ISSAQUAH WA 98027
Claudine Adamo	officer: Executive Vice President	999 LAKE DRIVE, ISSAQUAH WA 98027
James C Klauer	officer: Executive Vice President	999 LAKE DRIVE, ISSAQUAH WA 98027
Patrick J Callans	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
Helena Foulkes	director	ONE CVS DRIVE, WOONSOCKET RI 02895
Susan L Decker	director	C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089
Roland Michael Vachris	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
James P. Murphy	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
Kenneth D Denman	director