COSTNEUTRAL

COST Current Ratio Analysis

1.07x

Updated 609h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.07x means Costco has $1.07 in current assets for every $1.00 in current liabilities, showing it can cover near-term obligations, though with a modest cushion.

Sector Performance

36th percentile

COST

1.07x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

1.06x(Apr 2026)

→ Stable

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Deep Analysis

The current ratio of 1.07x means Costco has $1.07 in current assets for every $1.00 in current liabilities, showing it can cover near-term obligations, though with a modest cushion.

It sits below the sector median of 1.21x and at the 38th percentile among sector peers, indicating slightly weaker short-term liquidity than most competitors. The trend is N/A, with both the year-over-year and quarter-over-quarter changes marked as N/A, so no directional pattern can be inferred from this data point. Combining a near-median level with an unknown trend suggests limited near-term liquidity risk, but also no clear improvement or deterioration to build an investment thesis on. This metric neither strengthens nor weakens the case for the stock, as its level is not far from the sector norm and there is no trajectory to assess. Therefore, it supports the overall NEUTRAL verdict by providing no compelling reason to adjust risk expectations in either direction.

Frequently Asked Questions

What does the Current Ratio tell investors about COST?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are COST's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x), TEL (1.88x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.