Costco Wholesale Return On Equity vs. Working Capital
| COST Stock | USD 718.28 13.03 1.78% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.16727627 | Current Value 0.14 | Quarterly Volatility 0.04124829 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.096 | 0.1259 |
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| Net Profit Margin | 0.015 | 0.0183 |
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| Operating Profit Margin | 0.0208 | 0.0286 |
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| Pretax Profit Margin | 0.0337 | 0.0284 |
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| Return On Assets | 0.0757 | 0.0623 |
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| Return On Equity | 0.14 | 0.1673 |
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For Costco Wholesale profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Costco Wholesale to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Costco Wholesale Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Costco Wholesale's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Costco Wholesale Corp over time as well as its relative position and ranking within its peers.
Costco |
Is Costco Wholesale's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Costco Wholesale. If investors know Costco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Costco Wholesale listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.188 | Dividend Share 4.08 | Earnings Share 15.29 | Revenue Per Share 560.607 | Quarterly Revenue Growth 0.057 |
The market value of Costco Wholesale Corp is measured differently than its book value, which is the value of Costco that is recorded on the company's balance sheet. Investors also form their own opinion of Costco Wholesale's value that differs from its market value or its book value, called intrinsic value, which is Costco Wholesale's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Costco Wholesale's market value can be influenced by many factors that don't directly affect Costco Wholesale's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Costco Wholesale's value and its price as these two are different measures arrived at by different means. Investors typically determine if Costco Wholesale is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Costco Wholesale's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Costco Wholesale Corp Working Capital vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Costco Wholesale's current stock value. Our valuation model uses many indicators to compare Costco Wholesale value to that of its competitors to determine the firm's financial worth. Costco Wholesale Corp is rated fourth in return on equity category among related companies. It is number one stock in working capital category among related companies reporting about 7,361,333,761 of Working Capital per Return On Equity. At this time, Costco Wholesale's Return On Equity is comparatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Costco Wholesale by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Costco Wholesale's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Costco Wholesale's earnings, one of the primary drivers of an investment's value.Costco Working Capital vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Costco Wholesale |
| = | 0.31 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
Costco Wholesale |
| = | 2.3 B |
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
Costco Working Capital Comparison
Costco Wholesale is currently under evaluation in working capital category among related companies.
Costco Wholesale Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Costco Wholesale, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Costco Wholesale will eventually generate negative long term returns. The profitability progress is the general direction of Costco Wholesale's change in net profit over the period of time. It can combine multiple indicators of Costco Wholesale, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.6 B | -1.5 B | |
| Operating Income | 9.3 B | 9.8 B | |
| Income Before Tax | 9.8 B | 10.2 B | |
| Total Other Income Expense Net | 335.7 M | 352.5 M | |
| Net Income | 7.2 B | 7.6 B | |
| Income Tax Expense | 2.5 B | 2.7 B | |
| Interest Income | 389.9 M | 409.3 M | |
| Net Income Applicable To Common Shares | 7.2 B | 4.8 B | |
| Net Interest Income | 428.9 M | 450.4 M | |
| Net Income From Continuing Ops | 7.2 B | 5.2 B | |
| Non Operating Income Net Other | 184.5 M | 164 M | |
| Change To Netincome | 1.9 B | 1.1 B | |
| Net Income Per Share | 4.69 | 2.62 | |
| Income Quality | 1.91 | 1.42 | |
| Net Income Per E B T | 0.64 | 0.47 |
Costco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Costco Wholesale. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Costco Wholesale position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Costco Wholesale's important profitability drivers and their relationship over time.
Use Costco Wholesale in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Costco Wholesale position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Costco Wholesale will appreciate offsetting losses from the drop in the long position's value.Costco Wholesale Pair Trading
Costco Wholesale Corp Pair Trading Analysis
The ability to find closely correlated positions to Costco Wholesale could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Costco Wholesale when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Costco Wholesale - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Costco Wholesale Corp to buy it.
The correlation of Costco Wholesale is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Costco Wholesale moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Costco Wholesale Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Costco Wholesale can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Costco Wholesale position
In addition to having Costco Wholesale in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Junk Bonds Funds
Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 43 constituents at this time.
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Check out Trending Equities. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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When running Costco Wholesale's price analysis, check to measure Costco Wholesale's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Costco Wholesale is operating at the current time. Most of Costco Wholesale's value examination focuses on studying past and present price action to predict the probability of Costco Wholesale's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Costco Wholesale's price. Additionally, you may evaluate how the addition of Costco Wholesale to your portfolios can decrease your overall portfolio volatility.
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To fully project Costco Wholesale's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Costco Wholesale Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Costco Wholesale's income statement, its balance sheet, and the statement of cash flows.