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Costco Wholesale (COST) Inventory-to-Revenue : 0.23 (As of Aug. 2024)


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What is Costco Wholesale Inventory-to-Revenue?

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Costco Wholesale's Average Total Inventories for the quarter that ended in Aug. 2024 was $18,039 Mil. Costco Wholesale's Revenue for the three months ended in Aug. 2024 was $79,697 Mil. Costco Wholesale's Inventory-to-Revenue for the quarter that ended in Aug. 2024 was 0.23.

Costco Wholesale's Inventory-to-Revenue for the quarter that ended in Aug. 2024 declined from May. 2024 (0.30) to May. 2024 (0.23)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Costco Wholesale's Days Inventory for the three months ended in Aug. 2024 was 23.65.

Inventory Turnover measures how fast the company turns over its inventory within a year. Costco Wholesale's Inventory Turnover for the quarter that ended in Aug. 2024 was 3.86.


Costco Wholesale Inventory-to-Revenue Historical Data

The historical data trend for Costco Wholesale's Inventory-to-Revenue 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 Inventory-to-Revenue Chart

Costco Wholesale Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.07 0.07 0.07 0.07 0.07

Costco Wholesale Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Inventory-to-Revenue Get a 7-Day Free Trial 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 0.21 0.30 0.30 0.30 0.23

Competitive Comparison of Costco Wholesale's Inventory-to-Revenue

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

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

* The bar in red indicates where Costco Wholesale's Inventory-to-Revenue falls into.



Costco Wholesale Inventory-to-Revenue Calculation

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Costco Wholesale's Inventory-to-Revenue for the fiscal year that ended in Aug. 2024 is calculated as

Inventory-to-Revenue (A: Aug. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Aug. 2023 ) + Total Inventories (A: Aug. 2024 )) / count ) / Revenue (A: Aug. 2024 )
=( (16651 + 18647) / 2 ) / 254453
=17649 / 254453
=0.07

Costco Wholesale's Inventory-to-Revenue for the quarter that ended in Aug. 2024 is calculated as

Inventory-to-Revenue (Q: Aug. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: May. 2024 ) + Total Inventories (Q: Aug. 2024 )) / count ) / Revenue (Q: Aug. 2024 )
=( (17430 + 18647) / 2 ) / 79697
=18038.5 / 79697
=0.23

* 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  (NAS:COST) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Costco Wholesale's Days Inventory for the three months ended in Aug. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Aug. 2024 )/Cost of Goods Sold (Q: Aug. 2024 )*Days in Period
=18038.5/69588*365 / 4
=23.65

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

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

Inventory Turnover=Cost of Goods Sold (Q: Aug. 2024 ) / Average Total Inventories (Q: Aug. 2024 )
=69588 / 18038.5
=3.86

* 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 Inventory-to-Revenue Related Terms

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Costco Wholesale Business Description

Address
999 Lake Drive, Issaquah, WA, USA, 98027
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 over 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 UK.
Executives
Richard A Galanti director, officer: Executive VP and CFO 999 LAKE DRIVE, ISSAQUAH WA 98027
Pierre Riel officer: EVP 999 LAKE DRIVE, ISSAQUAH WA 98027
Russell D Miller officer: Executive Vice President 999 LAKE DRIVE, ISSAQUAH WA 98027
Caton Frates officer: Executive Vice President 999 LAKE DRIVE, ISSAQUAH WA 98027
Claudine Adamo officer: Executive Vice President 999 LAKE DRIVE, ISSAQUAH WA 98027
Patrick J Callans officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
Susan L Decker director C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089
Kenneth D Denman director
Daniel M. Hines other: Principal Acctg Officer 999 LAKE DRIVE, ISSAQUAH WA 98027
W Craig Jelinek officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
Yoram Rubananko officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
James C Klauer officer: Executive Vice President 999 LAKE DRIVE, ISSAQUAH WA 98027
Helena Foulkes director ONE CVS DRIVE, WOONSOCKET RI 02895
Roland Michael Vachris officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
James P. Murphy officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027