Costco Wholesale Corp Stock Return On Asset

COST Stock  USD 732.08  1.10  0.15%   
Costco Wholesale Corp fundamentals help investors to digest information that contributes to Costco Wholesale's financial success or failures. It also enables traders to predict the movement of Costco Stock. The fundamental analysis module provides a way to measure Costco Wholesale's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Costco Wholesale stock.
Return On Assets is likely to gain to 0.08 in 2024.
  
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Costco Return On Asset Analysis

Costco Wholesale's Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
 2021 2022 2023 2024 (projected)
Capital Expenditures3.9B4.3B5.0B5.2B
Dividends Paid1.5B1.3B1.4B1.4B

Return On Asset

 = 

Net Income

Total Assets

More About Return On Asset | All Equity Analysis

Current Costco Wholesale Return On Asset

    
  0.0835  
Most of Costco Wholesale's fundamental indicators, such as Return On Asset, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Costco Wholesale Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Costco Return On Asset Driver Correlations

Understanding the fundamental principles of building solid financial models for Costco Wholesale is extremely important. It helps to project a fair market value of Costco Stock properly, considering its historical fundamentals such as Return On Asset. Since Costco Wholesale's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Costco Wholesale's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Costco Wholesale's interrelated accounts and indicators.
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Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Competition

Costco Total Assets

Total Assets

83.31 Billion

At this time, Costco Wholesale's Total Assets are comparatively stable compared to the past year.
Based on the latest financial disclosure, Costco Wholesale Corp has a Return On Asset of 0.0835. This is 178.33% higher than that of the Consumer Staples Distribution & Retail sector and 98.25% lower than that of the Consumer Staples industry. The return on asset for all United States stocks is 159.64% lower than that of the firm.

Costco Return On Asset Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Costco Wholesale's direct or indirect competition against its Return On Asset to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Costco Wholesale could also be used in its relative valuation, which is a method of valuing Costco Wholesale by comparing valuation metrics of similar companies.
Costco Wholesale is currently under evaluation in return on asset category among related companies.

Costco Wholesale ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Costco Wholesale's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Costco Wholesale's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Costco Fundamentals

About Costco Wholesale Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Costco Wholesale Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Costco Wholesale using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Costco Wholesale Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2024
Return On Assets 0.06  0.08 

Pair Trading with Costco Wholesale

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.

Moving together with Costco Stock

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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
When determining whether Costco Wholesale Corp is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Costco Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Costco Wholesale Corp Stock. Highlighted below are key reports to facilitate an investment decision about Costco Wholesale Corp Stock:

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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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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
15.28
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.