Costco Financial Statements and Financial Ratios

Costco Financial Statements and Financial Ratios Analyzed

Hey All,

Thanks for visiting my Costco Financial Report page. On this page, you will be able to find preliminary information about Costco's current financial performance as well as some historical track records and trends. 

For a more detailed examination of Costco's financial performance, I offer two reports, which are "A Beginner's Guide to Costco Financial Analysis" and "Costco Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Costco Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!


Paul, MBA.

PDF/Downloadable Version

Costco 2022 - Beginner's Guide to Financial Analysis by Paul Borosky, MBA.

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Costco 2020 Financial Report by Paul Borosky, MBA.

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Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Costco: Brief Summary

Costco Incorporated is one of the most sought-after stocks in the world.  The company’s legendary founders, James Sinegal and Jeffrey Brotman are world-renowned.  Costco Inc. continues to innovate and disrupt its industry under the current leadership of Craig Jelinek. 

These circumstances have resulted in the organization becoming an industry leader.  For some, these facts alone are reason enough to buy stock in the company.

Costco Financial Report Sources

 “Costco 2022 Company Analysis: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by Paul Borosky, MBA., and owner of Quality Business Plan.  In this report, the author selected Costco's 2018 10k, 2019 10k annual report, 2020 10k annual report, 2021 10k annual report, and Costco's 2022 10k annual reports as the basis for information gathering. 


Section 1: Costco Income Statement Analyzed

In this section, I walk through a broad definition of what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Costco's important income statement line item trends from 2016 to 2020, in most cases.

Revenue Growth:  Costco’s revenues in 2016 were $118 billion.  In the next several years, the organization will continually increase its revenues ending 2020 at $166.7 billion.  This moderate growth rate equates to approximately a 9% annual revenue growth.

The consistent and above-average annual growth rate shows that the company is currently in a business expansion cycle.  In a business expansion cycle, investors often forgo the expectation of dividend payouts in hopes of future revenue gains through increased retained earnings.  In Costco’s case, not only is the organization consistently increasing its revenues, but they are also increasing its dividend payouts as well.  Investors are being rewarded on two fronts!  What a great deal.

Costco 2022 Income Statement Summary

Column1 2022 2021 2020 2019 2018
Revenues                  226,954                  195,929                  166,761                  152,703                    141,576
COGS                  199,382                  170,684                  144,939                  132,886                    123,152
Gross Profit                    27,572                    25,245                    21,822                    19,817                      18,424
SG&A                    19,779                    18,461                    16,332                    14,994                      13,876
Depreciation                      1,900                      1,781                      1,645                      1,492                        1,437
R & D                            -                            -                            -                            -                             -
Total Operating Expenses                    19,779                    18,537                    16,387                    15,080                      13,944
EBIT                      7,793                      6,708                      5,435                      4,737                        4,480
Other Income                            -                            -                             -
Interest Expense                        (158)                        (171)                        (160)                        (150)                         (159)
EBT                      7,840                      6,680                      5,367                      4,765                        4,442
Taxes                      1,925                      1,601                      1,308                      1,061                        1,263
Net Income                     5,915                     5,007                     4,002                     3,659                      3,134


Section 2: Costco Balance Sheet Analyzed

For Costco's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define Costco's balance sheet line items, such as cash, property, plant and equipment, and liabilities between 2016 to 2020.  Next, I then offer a summary analysis of Costco's essential balance sheet line items.

Cash:  Costco’s cash position in 2016 was $3.3 billion.  In the next three years, the organization would moderately increase its cash position ending 2019 at $8.3 billion.  However, in 2020, the organization’s cash position would increase substantially, ending the year at $12.2 billion. 

The significant increase in cash may indicate that the organization needs more funds to maintain operations.  However, because the organization has shown impressive discipline with its continued revenue growth and moderate cost growth, increasing cash at such a substantial rate may indicate inefficiencies in using the current assets of the organization.  A better strategy would be for the firm to maintain its disciplinary ways and grow its cash position moderately similar to its revenue growth as well as operating cost growth.


Costco 2022 Summary Balance Sheet



2021 2020 2019




                 11,258                  12,277                    8,384


Short Term Investment


                      917                    1,028                    1,060


Account Receivable


                   1,803                    1,550                    1,535




                 14,215                  12,242                  11,395


Other                              -                         -                         -                         -                         -
Current Assets


               29,505                28,120                23,485




                 23,492                  21,807                  20,890


Goodwill                              -                         -                         -                         -                         -
Other                              -                         -                         -                         -                         -
Total Assets


               59,268                55,556                45,400


Accounts Payable


                 16,278                  14,172                  11,679


Accrued Expense


                   4,090                    3,605                    3,176


Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                              -                         -                         -                         -                         -
LT Debt - Current


                      799                         95                    1,699


Other                              -                         -                         -                         -
Total Current Liabilities


                 29,441                  24,844                  23,237


LT Debt


                   6,692                    7,514                    5,124


Other                              -                         -                         -                         -                         -
Total Liabilities


               41,190                36,851                29,816


Common Stock


                          4                           4                           4


Treasury                              -                         -                         -                         -                         -
Retained Earnings


                 11,666                  12,879                  10,258


Other                              -                         -                         -                         -                         -
Total Equity


               18,078                18,705                15,584


Total Equity & Liability


               59,268                55,556                45,400



Section 3: Costco Financial Ratios Analyzed

For this section, I have chosen several different financial ratios to review for Costco from 2016 to 2020.  In reviewing each of Costco's financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of Costco's Important Financial ratios. 

Costco's Total Asset Turnover

Costco’s total asset turnover ended in 2016 at 3.5.  In the next several years, the organization’s total asset turnover would continually fall, ending 2020 at 3.0.  This means that the organization is making less money on total assets managed.  To better utilize total assets, the organization needs to either sell off underutilized assets and equipment or moderate its fixed asset accumulation until its current assets under management are better optimized.  In other words, the company needs to stop buying stuff like buildings and heavy machinery before they fully optimize what they have now.

Costco's Return on Assets

Costco’s return on assets ended 2016 at 7%.  In the next three years, the organization’s return on assets would moderately grow to 8.06% in 2019.  However, in 2020, the organization’s return on assets would moderately fall to 7.2%.  The reduction in return on assets for the organization may be attributed to its inability to optimally exploit current asset opportunities.  In other words, the company is holding too much cash and possibly short-term investments.  A better strategy would be for the organization to better utilize its liquid assets by paying out increased dividends, investing in company expansion at a faster pace, or repurchasing stocks from the open market.  Any one of these actions may help improve the organization’s management of assets.