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Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.
Costco Wholesale (NAS:COST) Cash Flow from Operations Explanation
For companies reported in indirect method, cash flow from operations contains six items:
1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.
Costco Wholesale's net income from continuing operations for the
three
months ended in May. 2026 was $2,192 Mil.
2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
The term depreciation is used when discussing man made tangible assets
The term depletion is used when discussing natural tangible assets
The term amortization is used when discussing intangible assets
Costco Wholesale's depreciation, depletion and amortization for the
three
months ended in May. 2026 was $597 Mil.
3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.
Costco Wholesale's change in working capital for the
three
months ended in May. 2026 was $499 Mil. It means Costco Wholesale's working capital
increased by $499 Mil
from Feb. 2026 to May. 2026 .
4. Deferred Tax:
It is the cash flow generated from deferred tax.
Costco Wholesale's cash flow from deferred tax for the
three
months ended in May. 2026 was $0 Mil.
Costco Wholesale's cash from discontinued operating Activities for the
three
months ended in May. 2026 was $0 Mil.
6. Asset Impairment Charge:
It is the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value.
Costco Wholesale's asset impairment charge for the
three
months ended in May. 2026 was $0 Mil.
7. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.
Costco Wholesale's stock based compensation for the
three
months ended in May. 2026 was $119 Mil.
8. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).
Costco Wholesale's cash flow from others for the
three
months ended in May. 2026 was $42 Mil.
Costco Wholesale Cash Flow from Operations Related Terms
Costco Wholesale Cash Flow from Operations Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Cash Flow from Operations can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Costco Wholesale Cash Flow from Operations Calculation
Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.
Costco Wholesale's Cash Flow from Operations for the fiscal year that ended in Aug. 2025 is calculated as:
Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $15,000 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Cash Flow from Operations of $15,000 Mil mean?
Costco Wholesale (COST) has a Cash Flow from Operations of $15,000 Mil as of May. 2026. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for Costco Wholesale and its competitors.
Is Costco Wholesale's Cash Flow from Operations too high?
Costco Wholesale's current Cash Flow from Operations is $15,000 Mil. Overall, Costco Wholesale has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's Cash Flow from Operations compare to TGT and DG?
Costco Wholesale's Cash Flow from Operations of $15,000 Mil can be compared against companies in the Retail - Defensive industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Flow from Operations for a Retail - Defensive company?
A good Cash Flow from Operations depends on the Retail - Defensive industry context. However, Cash Flow from Operations should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Flow from Operations mean?
A high Cash Flow from Operations can signal that a stock is expensive relative to its fundamentals. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for Costco Wholesale and its competitors. Costco Wholesale's current Cash Flow from Operations is $15,000 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Costco Wholesale stock overvalued right now?
Based on GuruFocus' analysis, Costco Wholesale (COST) is currently considered Fairly Valued. The stock's GF Value™ is $1,025.91, compared to a current price of $935.03 — trading 8.9% below its estimated fair value. The current Cash Flow from Operations is $15,000 Mil. Costco Wholesale's overall GF Score™ is 96/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Flow from Operations calculated?
Cash Flow from Operations is calculated from a company's financial statements. For Costco Wholesale (COST), the current Cash Flow from Operations is $15,000 Mil as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Costco Wholesale (COST) Overvalued in 2026?
Based on GuruFocus' analysis, Costco Wholesale stock appears to be undervalued.
The current stock price of $935.03 is trading 8.9% below its estimated GF Value™ of $1,025.91.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
Cash Flow from Operations: $15,000 Mil
GF Value™: $1,025.91 vs. price of $935.03 (8.9% below fair value)
No single metric tells the full story. See the COST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1983, Costco Wholesale now operates a global chain of membership-based warehouse clubs, delivering high-quality goods and services at consistently low prices. As of its most recent fiscal year, Costco operated approximately 910 warehouses, serving more than 80 million members across its three geographic segments: Costco US (approximately 73% of total revenue), Costco Canada (13%), and Costco International (14%).Costco's core value proposition—quality products at unbeatable prices—has yielded consistently strong member renewal rates (93% in the US and Canada and nearly 90% internationally). About 55% of Costco's fiscal 2025 revenue came from its grocery offerings, and another 25% from general merchandise.
96GF Score
Get the complete analysis for COST
Cash Flow from Operations is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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