Analysis for COST

📈 Growth & Financial Trajectory

Eight quarters show a steady top-line expansion from roughly $62.15B in the earliest quarter to about $70.53B in the latest, a gain near 13–14%. Net income climbs from around $1.90B to roughly $2.19B over the period, despite quarterly fluctuations (notably a revenue spike in late 2025). Gross margins stay in the low-to-mid teens; the Q3 2026 print implies a gross margin around 12.8% (gross profit about $9.01B on $70.53B revenue). The trajectory is positive with earnings per share in the high single digits in recent quarters.

💰 Margins & Cash Flow

• Gross margin runs roughly 11–13% across quarters. In Q3 2026, gross profit of $9.01B on $70.53B revenue yields about 12.8% margin.
• Operating cash flow tends to be strong, with cash from operating activities often around $3.0–3.5B per quarter (latest quarter about $3.45B). Net cash flow shows periodic fluctuations due to investing/financing.

🛡️ Balance Sheet & Liquidity

Total assets sit near $86B, with equity around $32B and liabilities near $53B in mid-period data. Current assets about $45B vs current liabilities around $42B indicates a thin but acceptable liquidity cushion (current ratio ~1.0–1.1). The balance sheet shows solid equity backing; balance-sheet resilience is supported by limited long-term liabilities in the dataset.

⚠️ Key Drivers & Risks

• Drivers: Costco’s membership model and scale; sustained consumer demand, plus seasonal (Q4) strength.
• Risks: Retail cyclicality and competition; sensitivity to discretionary spending and inflation; any supply chain disruption could compress margins.