Costco Wholesale Corporation cash flow to debt ratio of 163.16% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Costco Wholesale Corporation's free cash flow has increased 18.22% from $6.63B last year to $7.84B, signaling increasing performance

Costco Wholesale Corporation's debt to equity ratio is 0.25, which means that the company's assets are healthy financed, signaling financial stability.

Costco Wholesale Corporation's debt has decreased relative to shareholder equity from 0.35 last year to 0.25 today, signaling strengthened financials

Costco Wholesale Corporation has a net cash position, so leverage is healthy.

Costco Wholesale Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

Costco Wholesale Corporation's profit margin has increased (3.98%) in the last year from 2.90% to 3.01%, signaling increasing performance

Costco Wholesale Corporation's short-term assets of $38.38B exceed its short-term liabilities of $37.11B

Costco Wholesale Corporation's return on assets of 10.23% is higher than the 5.00% threshold, indicating efficient asset utilization

Costco Wholesale Corporation's return on equity of 28.27%, is higher than 15.00%, indicating good performance

Costco Wholesale Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Costco Wholesale Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Costco Wholesale Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Costco Wholesale Corporation has a free cash flow yield of 1.85%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Costco Wholesale Corporation's yearly earnings has increased 9.94% since last year from $7.37B to $8.10B, signaling increasing performance

Costco Wholesale Corporation's yearly revenue has increased 8.17% since last year from $254.45B to $275.24B, signaling increasing performance

ROIC 19.01% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Costco Wholesale Corporation's 3-year revenue CAGR of 6.64% is positive, indicating growing revenue over the past 3 years

Costco Wholesale Corporation had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Costco Wholesale Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Costco Wholesale Corporation is overvalued relative to its fair value price of 272.27 based on Discounted Cash Flow model

Costco Wholesale Corporation has an earnings yield of 2.09%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Costco Wholesale Corporation is overvalued relative to its fair value price of 224.90 based on EBITDA multiple model

Costco Wholesale Corporation has an EV/EBITDA ratio of 31.01x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Costco Wholesale Corporation is overvalued relative to its fair value price of 387.52 based on Earnings Fair Value model

Costco Wholesale Corporation has a PEG-ratio over 1 which is considered overvalued

Costco Wholesale Corporation has a price-to-book ratio of 12.62x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Costco Wholesale Corporation has a price-to-sales ratio of 1.44x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue