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What Costco's Balance Sheet Says About Its Financial Strength
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Key Takeaways
COST reported $13.8B in cash as of May 11, 2025, up sharply from $9.9B on Sept. 1, 2024.
Costco's total current assets of $38.2B exceed current liabilities of $37.6B, ensuring liquidity.
COST's equity rose to $27.1B from $23.6B, reflecting retained earnings and internal financing strength.
Costco Wholesale Corporation’s (COST - Free Report) balance sheet reveals a robust financial position, highlighted by strong liquidity and prudent asset management. As of May 11, 2025, the company reported $13,836 million in cash and cash equivalents, up from $9,906 million as of Sept. 1, 2024. This liquidity boost provides a significant buffer to support operations and fund long-term initiatives.
This cash strength is underpinned by impressive operating efficiency. Over the first 36 weeks of fiscal 2025, Costco generated $9,468 million in operating cash flow while effectively managing financing outflows. Even after distributing $1,030 million in dividends and continuing share repurchases, Costco’s net cash position remains strong.
Merchandise inventories totaled $18,606 million, reflecting the company’s scale and efficient turnover practices. Total current assets stood at $38,151 million, comfortably covering total current liabilities of $37,579 million, indicating healthy working capital and short-term solvency.
Costco’s long-term debt of $5,717 million is modest, especially when weighed against its total asset base of $75,482 million. The company's equity has also grown to $27,125 million as of May 11, 2025 from $23,622 million as of Sept. 1, 2024. This growth in retained earnings signals Costco’s ability to internally finance expansion without overreliance on debt.
Costco’s balance sheet not only confirms its ability to weather macroeconomic headwinds but also supports its aggressive warehouse expansion and digital initiatives. The company’s financial structure — strong liquidity, minimal debt and expanding equity — gives it the flexibility to adapt and invest in a dynamic retail environment.
How BJ and TGT Compare on Financial Strength to COST
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) ended its first quarter of fiscal 2025 with $39.5 million in cash and cash equivalents, $1,928.8 million in current assets and $1,971.6 million in stockholders' equity. However, BJ’s Wholesale Club had $2,510.4 million in current liabilities, signaling a working capital shortfall, and carried $398.9 million in long-term debt.
On the other hand, Target Corporation (TGT - Free Report) reported $2,887 million in cash and equivalents as of May 3, 2025, with total current assets of $17,759 million and total current liabilities of $18,991 million. Target had a long-term debt and other borrowings of $14,334 million.
Both BJ's Wholesale Club and Target highlight different financial strategies, yet neither matches the fortress-like balance sheet Costco brings to the table.
Costco’s Price Performance, Valuation and Estimates
Costco stock has been a standout performer, with shares rallying 14.7% in the past year, outpacing the industry’s growth of 8.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 47.38, higher than the industry’s ratio of 31.67. COST carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.1% and 11.6%, respectively.
Image: Bigstock
What Costco's Balance Sheet Says About Its Financial Strength
Key Takeaways
Costco Wholesale Corporation’s (COST - Free Report) balance sheet reveals a robust financial position, highlighted by strong liquidity and prudent asset management. As of May 11, 2025, the company reported $13,836 million in cash and cash equivalents, up from $9,906 million as of Sept. 1, 2024. This liquidity boost provides a significant buffer to support operations and fund long-term initiatives.
This cash strength is underpinned by impressive operating efficiency. Over the first 36 weeks of fiscal 2025, Costco generated $9,468 million in operating cash flow while effectively managing financing outflows. Even after distributing $1,030 million in dividends and continuing share repurchases, Costco’s net cash position remains strong.
Merchandise inventories totaled $18,606 million, reflecting the company’s scale and efficient turnover practices. Total current assets stood at $38,151 million, comfortably covering total current liabilities of $37,579 million, indicating healthy working capital and short-term solvency.
Costco’s long-term debt of $5,717 million is modest, especially when weighed against its total asset base of $75,482 million. The company's equity has also grown to $27,125 million as of May 11, 2025 from $23,622 million as of Sept. 1, 2024. This growth in retained earnings signals Costco’s ability to internally finance expansion without overreliance on debt.
Costco’s balance sheet not only confirms its ability to weather macroeconomic headwinds but also supports its aggressive warehouse expansion and digital initiatives. The company’s financial structure — strong liquidity, minimal debt and expanding equity — gives it the flexibility to adapt and invest in a dynamic retail environment.
How BJ and TGT Compare on Financial Strength to COST
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) ended its first quarter of fiscal 2025 with $39.5 million in cash and cash equivalents, $1,928.8 million in current assets and $1,971.6 million in stockholders' equity. However, BJ’s Wholesale Club had $2,510.4 million in current liabilities, signaling a working capital shortfall, and carried $398.9 million in long-term debt.
On the other hand, Target Corporation (TGT - Free Report) reported $2,887 million in cash and equivalents as of May 3, 2025, with total current assets of $17,759 million and total current liabilities of $18,991 million. Target had a long-term debt and other borrowings of $14,334 million.
Both BJ's Wholesale Club and Target highlight different financial strategies, yet neither matches the fortress-like balance sheet Costco brings to the table.
Costco’s Price Performance, Valuation and Estimates
Costco stock has been a standout performer, with shares rallying 14.7% in the past year, outpacing the industry’s growth of 8.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 47.38, higher than the industry’s ratio of 31.67. COST carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.1% and 11.6%, respectively.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.