Debt-to-Equity Ratio

The debt-to-equity ratio compares a company’s total liabilities to its shareholders’ equity, with 0.17x meaning COST uses only $0.17 of debt for every $1 of equity — a very conservative capital structure.

This ratio sits far below the sector median of 0.73x, placing COST in the 17th percentile among peers, meaning 83% of sector companies carry higher leverage. Over the last eight quarters the metric has been stable, though the most recent quarter shows a 32.0% decline from 0.25x to 0.17x; the year-over-year change is not available. The combination of an already low ratio and a stable, declining trend indicates minimal financial risk from debt, but also suggests COST is not using leverage to amplify returns. This metric supports the overall NEUTRAL verdict — a strong debt position reduces downside risk but does not, by itself, signal an attractive buying opportunity or a catalyst for outperformance.

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