Aureus
BGood

Costco Wholesale Corporation(COST)

B

Financial data as of Aug 31, 2025Improving · Consumer Staples

FCF Margin2.8%Free Cash Flow / Revenue
Cash Conversion164.6%Operating CF / Net Income
Free Cash Flow$7.8B
Revenue$275.2B
Net Cash$6.0BCash exceeds debt
Debt / FCF1.0xManageable debt load
Current Ratio1.03Adequate short-term liquidity
YoY FCF Growth+58.4%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
+1Strong YoY FCF growth (58.4% YoY)
→
+1Very low debt-to-FCF ratio (1.0x)
→
+0.5Highly consistent quarterly FCF
→
FinalB

Analysis Summary

Strengths

  • Excellent cash conversion (165%)
  • Net cash position ($6.0B)
  • Very low debt relative to cash flow (1.0x)
  • Strong YoY FCF growth (+58.4%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Low FCF margin (2.8%)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin2.8%
Net Margin2.9%
Operating CF Margin4.8%
CapEx Ratio2.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$6.0BCash exceeds debt
Debt / FCF1.0xManageable debt load
Current Ratio1.03Adequate liquidity
Debt / Equity0.28Low leverage

Quarterly FCF Trend

+58.4% YoYImproving (+58.4%)

Free cash flow per quarter

Sector Comparison — Consumer Staples

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameCostco Wholesale Corporation
SectorConsumer Staples
Free Cash Flow$7.8B
Revenue$275.2B
Net Income$8.1B
Operating Cash Flow$13.3B
Capital Expenditure$5.5B
FCF Margin2.8%
Cash Conversion Rate164.6%
Net Margin2.9%
Total Debt$8.2B
Total Cash$14.2B
Net Cash$6.0B
Current Ratio1.03
Debt / Equity0.28
Debt / FCF1.0x
YoY FCF Growth+58.4%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateAug 31, 2025
GradeB
Data SourceYahoo Finance

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