The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Costco Wholesale's Cash Ratio for the quarter that ended in Feb. 2024 was 0.30.
Costco Wholesale has a Cash Ratio of 0.30. 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:
BSP:COWC34'
s Cash Ratio Range Over the Past 10 Years
Min: 0.27 Med: 0.38 Max: 0.54
Current: 0.3
During the past 13 years, Costco Wholesale's highest Cash Ratio was 0.54. The lowest was 0.27. And the median was 0.38.
BSP:COWC34's Cash Ratio is ranked better than 53.31% of 302
companies
in the Retail - Defensive industry
Industry Median: 0.28
vs BSP:COWC34: 0.30
Costco Wholesale Cash Ratio Historical Data
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.
* Premium members only.
Costco Wholesale Annual Data
Trend
Aug14
Aug15
Aug16
Aug17
Aug18
Aug19
Aug20
Aug21
Aug22
Aug23
Cash Ratio
0.41
0.54
0.41
0.35
0.45
Costco Wholesale Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
Cash Ratio
0.42
0.43
0.45
0.49
0.30
Competitive Comparison
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 Distribution
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.
Costco Wholesale Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Costco Wholesale's Cash Ratio for the fiscal year that ended in Aug. 2023 is calculated as:
* 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 (BSP:COWC34) 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
Thank you for viewing the detailed overview of Costco Wholesale's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Costco Wholesale (BSP:COWC34) Business Description
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates nearly 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.
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