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Costco Wholesale Corp  (NAS:COST) Effective Interest Rate on Debt %: 2.10% (As of Feb. 2019)

Effective interest rate on debt is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Current Portion of Long-Term Debt. Costco Wholesale Corp's annualized positive value of Interest Expense for the quarter that ended in Feb. 2019 was $136 Mil. Costco Wholesale Corp's average total debt for the quarter that ended in Feb. 2019 was $6,486 Mil. Therefore, Costco Wholesale Corp's annualized effective interest rate on debt for the quarter that ended in Feb. 2019 was 2.10%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Costco Wholesale Corp Annual Data

Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Effective Interest Rate on Debt % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.24 2.21 2.35 2.28 2.43

Costco Wholesale Corp Quarterly Data

May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19
Effective Interest Rate on Debt % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.28 2.28 2.96 2.22 2.10

Competitive Comparison
* 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.


Costco Wholesale Corp Distribution

* The bar in red indicates where Costco Wholesale Corp's Effective Interest Rate on Debt % falls into.



Calculation

Costco Wholesale Corp's annualized Effective Interest Rate on Debt for the fiscal year that ended in Aug. 2018 is calculated as

Effective Interest Rate on Debt
=-1  *  Interest Expense/( (Total Debt  (A: Aug. 2017 )+Total Debt  (A: Aug. 2018 ))/ 2 )
=-1  *  -159/( (6573+6487)/ 2 )
=-1  *  -159/6530
=2.43 %

where

Total Debt  (A: Aug. 2017 )
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt
=6573 + 0
=6573

Total Debt  (A: Aug. 2018 )
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt
=6487 + 0
=6487

Costco Wholesale Corp's annualized Effective Interest Rate on Debt for the quarter that ended in Feb. 2019 is calculated as

Effective Interest Rate on Debt
=-1  *  Interest Expense/( (Total Debt  (Q: Nov. 2018 )+Total Debt  (Q: Feb. 2019 ))/ 2 )
=-1  *  -136/( (6480+6492)/ 2 )
=-1  *  -136/6486
=2.10 %

where

Total Debt  (Q: Nov. 2018 )
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt
=6480 + 0
=6480

Total Debt  (Q: Feb. 2019 )
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt
=4794 + 1698
=6492

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual effective interest rate on debt, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Feb. 2019) interest expense data. Effective Interest Rate on Debt is displayed in the 30-year financial page.


Explanation

Effective interest rate on debt measures the usage rate that a borrower actually pays on a debt.


Related Terms

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