How well is Costco performing financially? (2024)

How well is Costco performing financially?

Net sales for the 17-week fourth quarter were $77.43 billion, an increase of 9.4 percent from $70.76 billion in the 16-week fourth quarter last year. Net sales for the 53-week fiscal year were $237.71 billion, an increase of 6.7 percent from $222.73 billion in the 52-week fiscal year of 2022.

Is Costco doing well financially?

3), Costco registered net sales of $238 billion, making this the world's third-biggest retailer after Walmart and Amazon. That figure is up 72% from just five years ago. According to Wall Street analysts' estimates, Costco's revenue is set to increase at a compound annual rate of 6.1% between fiscal 2023 and 2026.

How well is Costco performing from a financial perspective?

Financial Strength of Costco Wholesale

Costco Wholesale has a cash-to-debt ratio of 1.72, which ranks better than 75.41% of 305 companies in the Retail - Defensive industry. The overall financial strength of Costco Wholesale is 8 out of 10, which indicates that the financial strength of Costco Wholesale is strong.

What is the financial performance of Costco?

Net income for the first 24 weeks was $3.33 billion, $7.49 per diluted share, compared to $2.83 billion, $6.37 per diluted share, last year. For the four-week reporting month of February, ended March 3, 2024, the Company reported net sales of $18.21 billion, an increase of 6.9 percent from $17.04 billion last year.

What are the financial trends for Costco?

Costco revenue for the twelve months ending February 29, 2024 was $248.828B, a 6.16% increase year-over-year. Costco annual revenue for 2023 was $242.29B, a 6.76% increase from 2022. Costco annual revenue for 2022 was $226.954B, a 15.83% increase from 2021.

Does Costco have a future?

Of course, Costco is going to have a much larger number of stores in the future. In the last 10 years, the store count expanded at a compound annual rate of 3%. Management opened 23 net new locations in fiscal 2023, with plans to open 31 in the current fiscal year.

How much is Costco in debt?

Total debt on the balance sheet as of November 2023 : $9.34 B. According to Costco's latest financial reports the company's total debt is $9.34 B. A company's total debt is the sum of all current and non-current debts.

What do analysts say about Costco?

Costco has 4.00% upside potential, based on the analysts' average price target. Is COST a Buy, Sell or Hold? Costco has a conensus rating of Strong Buy which is based on 20 buy ratings, 6 hold ratings and 0 sell ratings.

What is the future projection for Costco?

Future Growth

Costco Wholesale is forecast to grow earnings and revenue by 7.4% and 6.3% per annum respectively. EPS is expected to grow by 9.6% per annum. Return on equity is forecast to be 25.8% in 3 years.

Who are the biggest investors in Costco?

Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Fmr Llc, Morgan Stanley, Geode Capital Management, Llc, Invesco Qqq Trust, Series 1, and Bank Of America Corp /de/ .

Is Costco over or undervalued?

From a profit perspective, Costco stock trades at a price-to-earnings (P/E) ratio of 47. That valuation is double the average P/E ratio of the S&P 500, which currently sits at 23. It essentially means investors think Costco is worth buying at twice the price of an average stock.

Is Costco in sound financial condition?

Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress. Costco Wholesale has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Is Costco a well run company?

While there is little doubt that Costco is an extremely well-run company whose sales, earnings and store count will continue to grow, the stock's rich P/E multiple gives some analysts pause.

Why is Costco so profitable?

Costco makes some of its profits from its merchandise, but the bulk of its profits come from membership dues. Only members can shop at Costco. The membership business model allows Costco to undersell the competition by offering products in bulk at lower prices to ensure customer loyalty.

What are the success factors of Costco?

Is Costco a growing company?

From 1985 when it became public to 2022, Costco grew its sales and profits at a compounded annual rate of 12% and 13%, respectively. Its stock price grew at a 17% annual rate compared to the S&P's 9.3% rate.

Why is Costco a good long term investment?

It's a sales and profit-generating machine that works beautifully. But the secret to long-term growth is Costco's expansion opportunities. It only operates 874 stores worldwide, including 602 in the U.S., a much lower count than the traditional or discount supermarket chain. It's aiming to open about 30 a year.

What are the biggest threats to Costco?

Price Competition: Manufacturing costs have dropped in recent years, and other retail giants are exploiting ways of reducing operational costs. This has led to intense price competition, which is a threat to Costco. Bad economics: Bad economics affects every business, including Costco. Bad economic implies lower sales.

Why do Costco employees stay so long?

Retailers typically struggle to retain employees long term, especially hourly workers. But, Costco has kept employees happy and loyal over the years by consistently offering above-average retail wages and full medical and dental benefits, even to part-time employees.

Does Costco make a lot of profit?

Costco gross profit for the twelve months ending February 29, 2024 was $30.837B, a 9.02% increase year-over-year. Costco annual gross profit for 2023 was $29.704B, a 7.73% increase from 2022. Costco annual gross profit for 2022 was $27.572B, a 9.22% increase from 2021.

Is Costco a Fortune 100 company?

Costco is ranked #11 on the Fortune 500 rankings of the largest United States corporations by total revenue. Costco uses a club warehouse wholesale retailer channel of distribution while also selling their private label brand directly to consumers.

How much does the average Costco make a year?

How much does a Costco make in California? The average costco salary in California is $36,400 per year or $17.50 per hour. Entry level positions start at $32,690 per year while most experienced workers make up to $58,500 per year.

Is Costco hard to get hired?

Jobs at Costco are in high demand and fill up fast. Check to see if there are any grand openings in your area. A new store usually means more available positions. If you ask for an application in person, dress appropriately, smile, and convey the same positive attitude as the current employees.

Is it stressful to work at Costco?

"Costco is an incredibly stressful place to work, and you are required as full time to work for 40 hours a week," wrote one employee on Quora. This means that if you are just looking for an easy part-time gig, Costco might not be the place for you.

Why Costco treats employees well?

Our operational practices, benefits, and paid time-off policies acknowledge and reward employees for their continued contribution to our culture and success. We are committed to providing our employees with rewarding challenges and ample opportunities for personal and career growth.