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Costco Wholesale (NEOE:COST) 1-Year ROIIC % : 18.42% (As of Feb. 2024)


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What is Costco Wholesale 1-Year ROIIC %?

1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year. Costco Wholesale's 1-Year ROIIC % for the quarter that ended in Feb. 2024 was 18.42%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Costco Wholesale's 1-Year ROIIC % or its related term are showing as below:

NEOE:COST's 1-Year ROIIC % is ranked better than
62.24% of 286 companies
in the Retail - Defensive industry
Industry Median: 5.25 vs NEOE:COST: 18.42

Costco Wholesale 1-Year ROIIC % Historical Data

The historical data trend for Costco Wholesale's 1-Year ROIIC % 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 1-Year ROIIC % Chart

Costco Wholesale Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
1-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.15 10.66 24.43 36.00 4.01

Costco Wholesale Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
1-Year ROIIC % 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 11.18 7.81 4.01 9.15 18.42

Competitive Comparison of Costco Wholesale's 1-Year ROIIC %

For the Discount Stores subindustry, Costco Wholesale's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % 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 1-Year ROIIC % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's 1-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Costco Wholesale's 1-Year ROIIC % falls into.



Costco Wholesale 1-Year ROIIC % Calculation

Costco Wholesale's 1-Year ROIIC % for the quarter that ended in Feb. 2024 is calculated as:

1-Year ROIIC %=1-Year Incremental Net Operating Profit After Taxes (NOPAT)**/1-Year Incremental Invested Capital
=( 8621.8989 (Feb. 2024) - 7845.616 (Feb. 2023) )/( 59807.7 (Feb. 2024) - 56679.011 (Feb. 2023) )
=776.2829/3128.689
=24.81%***

* 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.

** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Costco Wholesale  (NEOE:COST) 1-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Costco Wholesale 1-Year ROIIC % Related Terms

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Costco Wholesale (NEOE:COST) 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 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.