Executive Summary
Costco Wholesale Corporation reported a strong Q4 2024, characterized by robust revenue growth and durable profitability. Revenue reached $79.697 billion, rising ~37.9% year over year (YoY) and ~36.2% quarter over quarter (QoQ), reflecting ongoing strength in traffic, mix, and international contributions. Gross margin stood at 12.68% with a 3.82% operating margin and a 2.95% net margin, supported by disciplined cost management and a favorable product mix amidst still-elevated inflationary dynamics. Net income of $2.354 billion and an EPS of $5.30 (diluted $5.29) underscore Costco’s ability to convert top-line growth into earnings power, aided by strong operating cash flow and a healthy balance sheet.
Key Performance Indicators
Key Insights
Revenue: $79.697B; YoY revenue growth: 37.89%, QoQ: 36.20%.
Gross Profit: $10.109B; Gross Margin: 12.68% (0.1268).
Operating Income: $3.042B; Operating Margin: 3.82% (0.0382).
Net Income: $2.354B; Net Margin: 2.95% (0.0295).
EPS: $5.30 (diluted $5.29); Weighted average shares: 444.013M (diluted 444.977M).
EBITDA: $3.869B; EBITDA Margin: 4.85% (0.0485).
Cash Flow: Operating cash flow $2.958B; Capex $1.578B; Free cash flow $1.381B.
Balance Sheet: Total assets $69.831B; Total liabilities $46.209B; ...
Financial Highlights
Revenue: $79.697B; YoY revenue growth: 37.89%, QoQ: 36.20%.
Gross Profit: $10.109B; Gross Margin: 12.68% (0.1268).
Operating Income: $3.042B; Operating Margin: 3.82% (0.0382).
Net Income: $2.354B; Net Margin: 2.95% (0.0295).
EPS: $5.30 (diluted $5.29); Weighted average shares: 444.013M (diluted 444.977M).
EBITDA: $3.869B; EBITDA Margin: 4.85% (0.0485).
Cash Flow: Operating cash flow $2.958B; Capex $1.578B; Free cash flow $1.381B.
Balance Sheet: Total assets $69.831B; Total liabilities $46.209B; Total equity $23.622B.
Liquidity & Leverage: Cash & equivalents $9.906B; Net debt position negative $1.634B; Current ratio 0.97; Debt/Capitalization 0.259; P/E 42.08x; P/B 16.77x; P/S 4.97x; FCF per share $3.11; Operating cash flow per share $6.66.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
79.70B |
37.89% |
36.20% |
| Gross Profit |
10.11B |
37.69% |
37.69% |
| Operating Income |
3.04B |
53.33% |
38.46% |
| Net Income |
2.35B |
48.14% |
40.04% |
| EPS |
5.30 |
48.04% |
39.84% |
Key Financial Ratios
operatingProfitMargin
3.82%
operatingCashFlowPerShare
$6.66
freeCashFlowPerShare
$3.11
dividendPayoutRatio
21.8%
Management Commentary
No earnings-call transcript data was provided in the materials. As a result, key management quotes and theme-based highlights from the Q4 2024 call are not included in this analysis. Where transcript data becomes available, the highlights will be organized by themes such as strategy, operations, and market conditions with context and significance.
Forward Guidance
There is no explicit forward guidance disclosed in the provided data. Absent formal guidance, the forward-looking assessment hinges on Costco’s demonstrated cash-generation capability, disciplined capital allocation, and ongoing member-driven model. Investors should monitor: (1) membership renewal and growth, (2) inflationary pass-through and cost % development, (3) international expansion effectiveness (Europe, Asia), (4) online/integration of e-commerce with brick-and-mortar, and (5) capital allocation signals (share repurchases vs. dividends vs. reinvestment). Given the strong operating cash flow and net cash position, Costco appears well-positioned to fund deleveraging, continue buybacks, and support a sustainable dividend, though valuation remains premium.