Costco Wholesale (XTER:CTO) Interest Coverage : 62.08 (As of Aug. 2024)

Costco Wholesale Interest Coverage Chart

Costco Wholesale Annual Data
	Trend	Aug15	Aug16	Aug17	Aug18	Aug19	Aug20	Aug21	Aug22	Aug23	Aug24
Interest Coverage		Get a 7-Day Free Trial					33.14	39.23	49.32	50.71	54.94

Costco Wholesale Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
Interest Coverage	Get a 7-Day Free Trial															49.66	52.21	50.29	53.59	62.08

Competitive Comparison of Costco Wholesale's Interest Coverage

For the Discount Stores subindustry, Costco Wholesale's Interest Coverage, along with its competitors' market caps and Interest Coverage 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's Interest Coverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Costco Wholesale's Interest Coverage falls into.

Costco Wholesale Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Costco Wholesale's Interest Coverage for the fiscal year that ended in Aug. 2024 is calculated as

Here, for the fiscal year that ended in Aug. 2024, Costco Wholesale's Interest Expense was €-153 Mil. Its Operating Income was €8,421 Mil. And its Long-Term Debt & Capital Lease Obligation was €7,409 Mil.

Costco Wholesale's Interest Coverage for the quarter that ended in Aug. 2024 is calculated as

Here, for the three months ended in Aug. 2024, Costco Wholesale's Interest Expense was €-44 Mil. Its Operating Income was €2,759 Mil. And its Long-Term Debt & Capital Lease Obligation was €7,409 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.

The higher the ratio, the stronger the company's Financial Strength is.

Costco Wholesale  (XTER:CTO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Costco Wholesale Interest Coverage Related Terms

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Costco Wholesale Business Description