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Costco WholesaleCOST -0.50%96 Cash Ratio is 0.47 as of May. 2026, which is 27% above its 10-year median of 0.37. GuruFocus rates COST with a GF Score™ of 96/100 and a GF Value™ of $1,022.85 (Fairly Valued). The stock has 1 warning sign investors should review. Among 304 Retail - Defensive companies, Costco Wholesale ranks better than 65.79% on this metric.
Costco Wholesale has a Cash Ratio of 0.47. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Costco Wholesale's Cash Ratio or its related term are showing as below:
COST'
s Cash Ratio Range Over the Past 10 Years
Min: 0.27 Med: 0.37 Max: 0.54
Current: 0.47
During the past 13 years, Costco Wholesale's highest Cash Ratio was 0.54. The lowest was 0.27. And the median was 0.37.
COST's Cash Ratio is ranked better than 65.79% of 304
companies
in the Retail - Defensive industry
Industry Median: 0.29
vs COST: 0.47
Costco Wholesale (NAS:COST) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Costco Wholesale Cash Ratio Related Terms
Costco Wholesale Cash Ratio Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Cash Ratio 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.
For the Discount Stores subindustry, Costco Wholesale's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Costco Wholesale Cash Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Cash Ratio falls into.
* 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 (COST) has a Cash Ratio of 0.47 as of May. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Costco Wholesale and its competitors. This is 27% above median its historical median of 0.37. Over the past decade, Costco Wholesale's Cash Ratio has ranged from 0.27 to 0.54. According to the industry distribution chart, Costco Wholesale ranks #104 out of 304 companies in the Retail - Defensive industry, placing it in the top 34.2%.
Is Costco Wholesale's Cash Ratio too high?
Costco Wholesale's current Cash Ratio of 0.47 is 27% above median its 10-year median of 0.37. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 0.54. The Retail - Defensive industry median Cash Ratio is 0.29. Costco Wholesale's value of 0.47 is 62.1% above this industry median. Based on the distribution chart, Costco Wholesale ranks #104 out of 304 companies in the Retail - Defensive industry, which is above the industry midpoint. 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 Ratio compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #104 out of 304 companies for Cash Ratio. This puts Costco Wholesale in the upper half of its industry. The industry median Cash Ratio is 0.29. Costco Wholesale's value of 0.47 is 62.1% above this benchmark. Historically, Costco Wholesale's own Cash Ratio has ranged from 0.27 to 0.54 over the past decade. While the company's 10-year median is 0.37 vs. the industry median of 0.29, Costco Wholesale has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Retail - Defensive company?
The median Cash Ratio among Retail - Defensive companies is 0.29, based on 304 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Cash Ratio of 0.47 is 62.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median Cash Ratio is 0.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Cash Ratio is 0.47, which is 27% above median its own 10-year median of 0.37. 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 $1,022.85, compared to a current price of $940.87 — trading 8% below its estimated fair value. The current Cash Ratio is 0.47, which is 27% above median its 10-year median of 0.37 and 62.1% above the Retail - Defensive industry median of 0.29. 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 Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Costco Wholesale (COST), the current Cash Ratio is 0.47 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 $940.87 is trading 8% below its estimated GF Value™ of $1,022.85.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
Cash Ratio: 0.47 (27% above median its 10-year median of 0.37)
GF Value™: $1,022.85 vs. price of $940.87 (8% below fair value)
Industry Position: 62.1% above the Retail - Defensive median (#104 of 304)
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
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