What is Costco Wholesale Return-on-Tangible-Equity?
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Costco Wholesale's annualized net income for the quarter that ended in Feb. 2024 was $6,972 Mil. Costco Wholesale's average shareholder tangible equity for the quarter that ended in Feb. 2024 was $23,454 Mil. Therefore, Costco Wholesale's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2024 was 29.73%.
The historical rank and industry rank for Costco Wholesale's Return-on-Tangible-Equity or its related term are showing as below:
COST'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.79 Med: 24.99 Max: 30.59
Current: 28.71
During the past 13 years, Costco Wholesale's highest Return-on-Tangible-Equity was 30.59%. The lowest was 17.79%. And the median was 24.99%.
COST's Return-on-Tangible-Equity is ranked better than 75.59% of 299
companies
in the Retail - Defensive industry
Industry Median: 11.95
vs COST: 28.71
Costco Wholesale Return-on-Tangible-Equity Historical Data
The historical data trend for Costco Wholesale's Return-on-Tangible-Equity 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.
Competitive Comparison of Costco Wholesale's Return-on-Tangible-Equity
For the Discount Stores subindustry, Costco Wholesale's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Costco Wholesale's Return-on-Tangible-Equity Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Feb. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Costco Wholesale Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Costco Wholesale's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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