Costco Wholesale Corporation, trading as COST.BA on the Buenos Aires Stock Exchange, delivered a standout Q4 2024 in USD terms with robust top-line growth and solid profitability. Revenue for the quarter stood at $79.70 billion, up 36.37% year over year, supported by a strong gross profit of $10.11 billion and a gross margin of 12.68%. Operating income reached $3.04 billion, translating to an operating margin of 3.82%, while net income was $2.35 billion and earnings per share (EPS) $0.44, reflecting a YoY EPS uplift of approximately 34.9%. The company generated $2.96 billion in operating cash flow and delivered free cash flow of about $1.38 billion, highlighting Costco’s ability to translate scale into cash flow even as it continues to invest in growth initiatives.
From a balance-sheet perspective, Costco maintains a strong asset base with total assets of $69.83 billion and total stockholders’ equity of $23.62 billion. The balance sheet shows a net cash position of roughly $1.63 billion (net debt of -$1.63 billion), and liquidity metrics remain solid, albeit with a current ratio just under 1 at 0.97. Cost of goods sold was $69.59 billion, with inventory at $18.65 billion, implying a Days Inventory Outstanding around 24 days. The company also returned capital to shareholders via dividends and modest share repurchases, while maintaining a conservative leverage profile (long-term debt of about $8.17 billion and debt-to-equity around 0.25).
Overall, the QQ4 quarter confirms Costco’s ability to sustain high-velocity revenue growth and meaningful profitability from a membership-based retail model, supported by strong operating cash flow and a prudent balance-sheet posture. Investors should monitor currency translation effects from international operations, fx-driven margin dynamics, and continued efficiency in inventory and price realization as Costco navigates a competitive landscape and macro headwinds.