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Costco WholesaleCOST -0.83%94 Cash-to-Debt is 2.46 as of May. 2026, which is 94% above its 10-year median of 1.27. GuruFocus rates COST with a GF Score™ of 94/100 and a GF Value™ of $1,039.80 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 309 Retail - Defensive companies, Costco Wholesale ranks better than 77.35% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Costco Wholesale's cash to debt ratio for the quarter that ended in May. 2026 was 2.46.
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. Here we can see, Costco Wholesalecould pay off its debt using the cash in hand for the quarter that ended in May. 2026.
The historical rank and industry rank for Costco Wholesale's Cash-to-Debt or its related term are showing as below:
COST'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.87 Med: 1.27 Max: 2.46
Current: 2.46
During the past 13 years, Costco Wholesale's highest Cash to Debt Ratio was 2.46. The lowest was 0.87. And the median was 1.27.
COST's Cash-to-Debt is ranked better than 77.35% of 309
companies
in the Retail - Defensive industry
Industry Median: 0.44
vs COST: 2.46
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Costco Wholesale Cash-to-Debt Related Terms
Costco Wholesale Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Discount Stores subindustry, Costco Wholesale's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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-to-Debt vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Cash-to-Debt 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-to-Debt of 2.46 as of May. 2026. This is 94% above median its historical median of 1.27. Over the past decade, Costco Wholesale's Cash-to-Debt has ranged from 0.87 to 2.46. According to the industry distribution chart, Costco Wholesale ranks #70 out of 309 companies in the Retail - Defensive industry, placing it in the top 22.7%.
Is Costco Wholesale's Cash-to-Debt too high?
Costco Wholesale's current Cash-to-Debt of 2.46 is 94% above median its 10-year median of 1.27. Over the past 10 years, this metric has ranged from a low of 0.87 to a high of 2.46. The Retail - Defensive industry median Cash-to-Debt is 0.44. Costco Wholesale's value of 2.46 is 459.1% above this industry median. Based on the distribution chart, Costco Wholesale ranks #70 out of 309 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Costco Wholesale has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's Cash-to-Debt compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #70 out of 309 companies for Cash-to-Debt. This places Costco Wholesale in the top 23% of its industry — outperforming the majority of peers. The industry median Cash-to-Debt is 0.44. Costco Wholesale's value of 2.46 is 459.1% above this benchmark. Historically, Costco Wholesale's own Cash-to-Debt has ranged from 0.87 to 2.46 over the past decade. While the company's 10-year median is 1.27 vs. the industry median of 0.44, 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-to-Debt for a Retail - Defensive company?
The median Cash-to-Debt among Retail - Defensive companies is 0.44, based on 309 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Cash-to-Debt of 2.46 is 459.1% 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-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Retail - Defensive industry, the median Cash-to-Debt is 0.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Cash-to-Debt is 2.46, which is 94% above median its own 10-year median of 1.27. 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 Modestly Undervalued. The stock's GF Value™ is $1,039.80, compared to a current price of $902.60 — trading 13.2% below its estimated fair value. The current Cash-to-Debt is 2.46, which is 94% above median its 10-year median of 1.27 and 459.1% above the Retail - Defensive industry median of 0.44. Costco Wholesale's overall GF Score™ is 94/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Costco Wholesale (COST), the current Cash-to-Debt is 2.46 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 $902.60 is trading 13.2% below its estimated GF Value™ of $1,039.80.
GuruFocus considers Costco Wholesale to be Modestly Undervalued.
Key valuation signals for COST:
Cash-to-Debt: 2.46 (94% above median its 10-year median of 1.27)
GF Value™: $1,039.80 vs. price of $902.60 (13.2% below fair value)
Industry Position: 459.1% above the Retail - Defensive median (#70 of 309)
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.
94GF Score
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