Costco Wholesale EBITDA vs. Gross Profit

COST Stock  USD 954.07  0.73  0.08%   
Based on the measurements of profitability obtained from Costco Wholesale's financial statements, Costco Wholesale Corp may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Costco Wholesale's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
12.1 B
Current Value
12.8 B
Quarterly Volatility
3.6 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
Price To Sales Ratio is likely to drop to 0.47 in 2024. Days Sales Outstanding is likely to drop to 3.72 in 2024. At this time, Costco Wholesale's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 10.2 B in 2024, whereas Net Income From Continuing Ops is likely to drop slightly above 5.6 B in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.130.1261
Fairly Up
Very volatile
Net Profit Margin0.01830.029
Way Down
Slightly volatile
Operating Profit Margin0.02860.0365
Significantly Down
Slightly volatile
Pretax Profit Margin0.02840.0383
Way Down
Slightly volatile
Return On Assets0.06230.1055
Way Down
Slightly volatile
Return On Equity0.170.3119
Way Down
Slightly volatile
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 Wholesale's Revenue Breakdown by Earning Segment

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Is Consumer Staples Distribution & Retail space 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
0.088
Earnings Share
16.98
Revenue Per Share
573.203
Quarterly Revenue Growth
0.01
Return On Assets
0.0836
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 Gross Profit vs. EBITDA 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.
JavaScript chart by amCharts 3.21.15BIGWMTTGTDGBJDLTRCOST 050B100B150B 05B10B15B20B25B30B35B40B
Costco Wholesale Corp is rated third in ebitda category among its peers. It also is rated third in gross profit category among its peers fabricating about  2.48  of Gross Profit per EBITDA. At this time, Costco Wholesale's EBITDA is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Costco Wholesale by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Costco Gross Profit vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Costco Wholesale

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
12.15 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Costco Wholesale

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
30.09 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Costco Gross Profit Comparison

30.1B1.9B147.6B26.9B100%
Costco Wholesale is currently under evaluation in gross profit category among its peers.

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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.8 B-1.7 B
Operating Income9.3 B9.7 B
Income Before Tax9.7 B10.2 B
Total Other Income Expense Net455 M477.8 M
Net Income7.4 B7.7 B
Income Tax Expense2.4 B2.5 B
Interest Income598 M627.9 M
Net Income Applicable To Common Shares7.2 B4.8 B
Net Interest Income429 M450.4 M
Net Income From Continuing Ops7.4 B5.6 B
Non Operating Income Net Other184.5 M164 M
Change To Netincome1.9 B1.1 B
Net Income Per Share 16.60  4.69 
Income Quality 1.54  1.91 
Net Income Per E B T 0.76  0.64 

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.
Pair CorrelationCorrelation Matching

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Additional Tools for Costco Stock Analysis

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.