Costco Wholesale Corp
NASDAQ:COST

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Costco Wholesale Corp Logo
Costco Wholesale Corp
NASDAQ:COST
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Price: 1 010.81 USD -3.89% Market Closed
Market Cap: 448.5B USD

FCF Margin
Free Cash Flow Margin

2.7%
Current
2%
Average
2.3%
Industry

FCF Margin measures the amount of cash generated by a firm as a proportion of revenue. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

FCF Margin
2.7%
=
Free Cash Flow
7.3B
/
Revenue
268.8B

FCF Margin Across Competitors

Costco Wholesale Corp
Glance View

Economic Moat
Wide
Market Cap
448.3B USD
Industry
Retail

Costco Wholesale Corp., a titan of the retail industry, emerged from humble beginnings to redefine how consumers experience value shopping. Founded in 1976 by James Sinegal and Jeffrey Brotman, Costco's journey began with a simple yet powerful ethos: to provide quality goods and services at the lowest possible prices. Unlike traditional retailers, Costco operates on a membership-only model, charging customers an annual fee for the privilege of accessing its wide range of products. This membership system generates a steady stream of revenue and fosters a sense of exclusivity among its shoppers, who are greeted with everything from electronics and groceries to luxury goods and vacation packages. The company's vast warehouses, designed for efficiency and cost savings, allow customers to purchase goods in bulk, further enhancing the value proposition. What truly sets Costco apart is its business model, which emphasizes high sales volume and rapid inventory turnover, allowing it to negotiate competitive prices with suppliers. A cornerstone of its success is the razor-thin markup strategy; Costco is known for capping markups on all goods, ensuring that customers find bargains they may not encounter elsewhere. The company's operations extend into ancillary businesses, including gas stations, food courts, and optical centers, each contributing marginally to profits but significantly to customer loyalty and foot traffic. By maintaining a streamlined selection of items—typically favoring high-quality, private-label brands—Costco achieves economies of scale that reinforce its cost leadership. Its dedication to employee satisfaction, with industry-leading wages and benefits, reflects a corporate philosophy that happy employees lead to happy customers, further driving its robust membership renewals and financial stability.

COST Intrinsic Value
HIDDEN
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What is Free Cash Flow Margin?

FCF Margin measures the amount of cash generated by a firm as a proportion of revenue. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

FCF Margin
2.7%
=
Free Cash Flow
7.3B
/
Revenue
268.8B
What is the FCF Margin of Costco Wholesale Corp?

Based on Costco Wholesale Corp's most recent financial statements, the company has FCF Margin of 2.7%.

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