Data is not available at this time.
Costco Wholesale Corporation operates as a leading global retailer, specializing in membership-based warehouse clubs. The company generates revenue primarily through membership fees, which provide recurring income, and bulk sales of high-quality, low-cost merchandise across categories like groceries, electronics, and household goods. Costco’s no-frills warehouse model emphasizes efficiency, passing savings to customers while maintaining thin margins, a strategy that fosters strong customer loyalty and high renewal rates. Operating in a competitive retail sector dominated by Walmart and Amazon, Costco differentiates itself through its curated product selection, limited SKUs, and exclusive Kirkland Signature private label, which drives higher margins. The company’s focus on value, coupled with strategic locations and a disciplined expansion strategy, solidifies its position as a top player in wholesale retail. Its membership-based revenue model provides stability, insulating it from pure-play retail volatility, while its scale enables competitive pricing and supplier leverage.
Costco reported $254.5 billion in revenue for FY 2024, reflecting its massive scale and consistent top-line growth. Net income stood at $7.4 billion, with diluted EPS of $16.56, demonstrating solid profitability despite its low-margin business model. Operating cash flow of $11.3 billion underscores strong operational efficiency, while capital expenditures of $4.7 billion highlight ongoing investments in store expansion and infrastructure.
The company’s earnings power is bolstered by high membership renewal rates and disciplined cost management, translating into stable cash flows. Capital efficiency is evident in its ability to generate substantial operating cash flow relative to its capex, enabling reinvestment while maintaining financial flexibility. The membership fee revenue, which is nearly pure profit, enhances return on invested capital.
Costco maintains a robust balance sheet with $9.9 billion in cash and equivalents and $8.3 billion in total debt, reflecting a conservative leverage profile. Its strong liquidity position supports both growth initiatives and shareholder returns, while its low debt-to-equity ratio ensures financial resilience in economic downturns.
Costco has demonstrated consistent growth through strategic store openings and e-commerce expansion. The company paid a dividend of $20.37 per share in FY 2024, reflecting its commitment to returning capital to shareholders. Its growth trajectory remains steady, supported by increasing membership penetration and international expansion.
The market values Costco at a premium due to its defensive business model, loyal customer base, and predictable earnings. Investors anticipate sustained growth from membership fee increases, international expansion, and market share gains in retail, justifying its elevated valuation multiples.
Costco’s key advantages include its membership-based revenue model, pricing power, and operational efficiency. The outlook remains positive, with opportunities in digital transformation and global markets. Risks include competitive pressures and macroeconomic volatility, but its strong brand and financial health position it well for long-term success.
10-K filing, company investor relations
show cash flow forecast
Fiscal year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | |
INCOME STATEMENT | ||||||||||||||||||||||||||
Revenue growth rate, % | NaN | |||||||||||||||||||||||||
Revenue, $ | NaN | |||||||||||||||||||||||||
Variable operating expenses, $m | NaN | |||||||||||||||||||||||||
Fixed operating expenses, $m | NaN | |||||||||||||||||||||||||
Total operating expenses, $m | NaN | |||||||||||||||||||||||||
Operating income, $m | NaN | |||||||||||||||||||||||||
EBITDA, $m | NaN | |||||||||||||||||||||||||
Interest expense (income), $m | NaN | |||||||||||||||||||||||||
Earnings before tax, $m | NaN | |||||||||||||||||||||||||
Tax expense, $m | NaN | |||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
BALANCE SHEET | ||||||||||||||||||||||||||
Cash and short-term investments, $m | NaN | |||||||||||||||||||||||||
Total assets, $m | NaN | |||||||||||||||||||||||||
Adjusted assets (=assets-cash), $m | NaN | |||||||||||||||||||||||||
Average production assets, $m | NaN | |||||||||||||||||||||||||
Working capital, $m | NaN | |||||||||||||||||||||||||
Total debt, $m | NaN | |||||||||||||||||||||||||
Total liabilities, $m | NaN | |||||||||||||||||||||||||
Total equity, $m | NaN | |||||||||||||||||||||||||
Debt-to-equity ratio | NaN | |||||||||||||||||||||||||
Adjusted equity ratio | NaN | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
Depreciation, amort., depletion, $m | NaN | |||||||||||||||||||||||||
Funds from operations, $m | NaN | |||||||||||||||||||||||||
Change in working capital, $m | NaN | |||||||||||||||||||||||||
Cash from operations, $m | NaN | |||||||||||||||||||||||||
Maintenance CAPEX, $m | NaN | |||||||||||||||||||||||||
New CAPEX, $m | NaN | |||||||||||||||||||||||||
Total CAPEX, $m | NaN | |||||||||||||||||||||||||
Free cash flow, $m | NaN | |||||||||||||||||||||||||
Issuance/(repurchase) of shares, $m | NaN | |||||||||||||||||||||||||
Retained Cash Flow, $m | NaN | |||||||||||||||||||||||||
Pot'l extraordinary dividend, $m | NaN | |||||||||||||||||||||||||
Cash available for distribution, $m | NaN | |||||||||||||||||||||||||
Discount rate, % | NaN | |||||||||||||||||||||||||
PV of cash for distribution, $m | NaN | |||||||||||||||||||||||||
Current shareholders' claim on cash, % | NaN |