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Costco Wholesale Gross Margin %

: 12.97% (As of May. 2019)
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Gross Margin % is calculated as gross profit divided by its revenue. Costco Wholesale's Gross Profit for the three months ended in May. 2019 was USD 4,507 Mil. Costco Wholesale's Revenue for the three months ended in May. 2019 was USD 34,740 Mil. Therefore, Costco Wholesale's Gross Margin % for the quarter that ended in May. 2019 was 12.97%.


NAS:COST' s Gross Margin % Range Over the Past 10 Years
Min: 12.42   Max: 13.32
Current: 12.98

12.42
13.32

During the past 13 years, the highest Gross Margin % of Costco Wholesale was 13.32%. The lowest was 12.42%. And the median was 12.75%.

NAS:COST's Gross Margin % is ranked lower than
82% of the 362 Companies
in the Retail - Defensive industry.

( Industry Median: 24.41 vs. NAS:COST: 12.98 )

Costco Wholesale had a gross margin of 12.97% for the quarter that ended in May. 2019 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Costco Wholesale was 1.00% per year.


Costco Wholesale Gross Margin % 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 Annual Data
Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.02 13.32 13.29 13.01 12.98

Costco Wholesale Quarterly Data
Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19
Gross Margin % 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 12.92 12.68 13.21 12.97 13.03

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 Gross Margin % Distribution

* The bar in red indicates where Costco Wholesale's Gross Margin % falls into.



Costco Wholesale Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Costco Wholesale's Gross Margin for the fiscal year that ended in Aug. 2018 is calculated as

Gross Margin % (A: Aug. 2018 )=Gross Profit (A: Aug. 2018 ) / Revenue (A: Aug. 2018 )
=18424 / 141576
=(Revenue - Cost of Goods Sold) / Revenue
=(141576 - 123152) / 141576
=13.01 %

Costco Wholesale's Gross Margin for the quarter that ended in May. 2019 is calculated as


Gross Margin % (Q: May. 2019 )=Gross Profit (Q: May. 2019 ) / Revenue (Q: May. 2019 )
=-30233 / 34740
=(Revenue - Cost of Goods Sold) / Revenue
=(34740 - 30233) / 34740
=12.97 %

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

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Costco Wholesale  (NAS:COST) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Costco Wholesale had a gross margin of 12.97% for the quarter that ended in May. 2019 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Costco Wholesale Gross Margin % Related Terms


Costco Wholesale Gross Margin % Headlines

From the Internet

3 Potential Risks for Costco Investors

- Fool 2019-10-13 13:36:00

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