Exceptional cash conversion efficiency is evidenced by an OCF/NI ratio of 1.57 in 2026Q3, reflecting the structural advantage of collecting membership fees upfront.
| Metric | TTM | Aug'25 | Sep'24 | Sep'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Aug'16 | Aug'15 | Aug'14 | Aug'13 | Aug'12 | Aug'11 | Aug'10 | Aug'09 | Aug'08 | Aug'07 | Aug'06 | Aug'05 | Aug'04 | Aug'03 | Aug'02 | Aug'01 | Aug'00 | Aug'99 | Aug'98 | Aug'97 | Aug'96 |
|---|
| Cash from Operations | 15B | 13.34B | 11.34B | 11.07B | 7.39B | 8.96B | 8.86B | 6.36B | 5.77B | 6.73B | 3.29B | 4.29B | 3.98B | 3.44B | 3.06B | 3.2B | 2.78B | 2.09B | 2.18B | 2.08B | 1.83B | 1.78B | 2.1B | 1.51B | 1.02B | 1.03B | 1.07B | 940.9M | 737.6M | 590.2M | 426.4M |
| Operating CF Margin % | - | 4.84% | 4.46% | 4.57% | 3.26% | 4.57% | 5.31% | 4.16% | 4.08% | 5.21% | 2.77% | 3.69% | 3.54% | 3.27% | 3.08% | 3.6% | 3.57% | 2.93% | 3% | 3.22% | 3.04% | 3.37% | 4.36% | 3.54% | 2.63% | 2.97% | 3.33% | 3.43% | 3.04% | 2.7% | 2.18% |
| Operating CF Growth % | 83.24% | 17.6% | 2.45% | 49.73% | -17.48% | 1.09% | 39.41% | 10.08% | -14.15% | 104.31% | -23.17% | 7.56% | 15.92% | 12.43% | -4.41% | 15.04% | 32.89% | -3.87% | 4.8% | 13.63% | 2.47% | -15.04% | 39.25% | 48.02% | -1.39% | -3.53% | 13.76% | 27.56% | 24.97% | 38.41% | 53.16% |
| Net Income | 8.84B | 8.1B | 7.37B | 6.29B | 5.92B | 5.08B | 4.06B | 3.7B | 3.18B | 2.71B | 2.38B | 2.41B | 2.09B | 2.06B | 1.77B | 1.54B | 1.32B | 1.09B | 1.28B | 1.08B | 1.1B | 1.06B | 882.39M | 721M | 699.98M | 602.09M | 631.44M | 515.3M | 459.8M | 312.2M | 248.8M |
| Depreciation & Amortization | 2.56B | 2.43B | 2.24B | 2.08B | 1.9B | 1.78B | 1.65B | 1.49B | 1.44B | 1.37B | 1.25B | 1.13B | 1.03B | 946M | 908M | 855M | 795M | 728M | 653.08M | 566.38M | 515.28M | 477.87M | 440.72M | 391.3M | 341.78M | 301.3M | 254.4M | 224.8M | 196.3M | 182.3M | 161.6M |
| Stock-Based Compensation | 911M | 860M | 818M | 774M | 724M | 665M | 619M | 595M | 544M | 514M | 459M | 394M | 327M | 285M | 241M | 207M | 190M | 181M | 166M | 0 | 107.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -37M | 59M | 104M | 147M | -49M | -29M | 269M | -101M | -63M | 7M | -3M | 84M | 7M | 70M | 21.29M | -92.74M | -38.31M | -64.69M | 32.5M | 68.69M | 12.18M | 40.8M | 8.26M | -22.7M | 20.4M | -4.3M | -4.5M |
| Other Non-Cash Items | 1.84B | 186M | 306M | 907M | 453M | 371M | 236M | 9M | -6M | -14M | -57M | -91M | -62M | -68M | -36M | -22M | -50M | 24M | 146.08M | 107.46M | -54.67M | 107.31M | 47.59M | 30.26M | 48.41M | 48.5M | -10.85M | 100K | 100K | 64.4M | 2.5M |
| Working Capital Changes | 849M | 1.76B | 611M | 1.02B | -1.56B | 1B | 2.2B | 409M | 669M | 2.17B | -1.01B | 547M | 665M | 206M | 180M | 532M | 515M | 3M | 131.45M | 446.71M | 194.37M | 199.6M | 695.58M | 295.95M | -84.11M | 39.88M | 88.56M | 186.6M | 43M | 35.6M | 14.5M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 78.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 584M | 559M | -2.07B | 1.23B | -4B | -1.89B | -791M | -536M | -1.31B | -894M | -25M | -890M | -563M | -898M | -490M | -642M | -213M | -394M | -191.79M | -272.51M | -500.6M | -315.79M | -256.44M | -162.76M | -380.16M | -271.36M | -280.38M | -286.9M | -255.1M | -189.3M | -82.4M |
| Change in Payables | -200M | 404M | 1.94B | -382M | 1.89B | 1.84B | 2.26B | 322M | 1.56B | 2.26B | -1.53B | 880M | 529M | 718M | 338M | 804M | 445M | 255M | 96M | 434.92M | 278.86M | 482.22M | 211.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -6.13B | -5.31B | -4.41B | -4.97B | -4.76B | -3.54B | -3.89B | -2.87B | -2.95B | -2.37B | -2.35B | -2.48B | -2.09B | -2.25B | -1.24B | -1.18B | -2.02B | -1.1B | -1.72B | -655.31M | -1.15B | -2.06B | -1.05B | -790.59M | -1.03B | -1.34B | -1.05B | -953.9M | -609.4M | -543.2M | -543.2M |
| Capital Expenditures | -6.19B | -5.5B | -4.71B | -4.32B | -3.89B | -3.59B | -2.81B | -3B | -2.97B | -2.5B | -2.65B | -2.39B | -1.99B | -2.08B | -1.48B | -1.29B | -1.05B | -1.25B | -1.6B | -1.39B | -1.21B | -995.43M | -705.62M | -810.66M | -1.04B | -1.45B | -1.23B | -787.9M | -571.9M | -553.4M | -506.8M |
| CapEx % of Revenue | 2.11% | 2% | 1.85% | 1.78% | 1.71% | 1.83% | 1.69% | 1.96% | 2.1% | 1.94% | 2.23% | 2.06% | 1.77% | 1.98% | 1.49% | 1.45% | 1.35% | 1.75% | 2.21% | 2.15% | 2.02% | 1.88% | 1.47% | 1.91% | 2.68% | 4.16% | 3.82% | 2.87% | 2.36% | 2.53% | 2.59% |
| Acquisitions | 0 | 0 | 0 | 0 | -842M | 0 | -1.16B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11M | 165M | 4M | 7M | 47.61M | 14.05M | 15.74M | 19.43M | -95.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 102M | 74M | -19M | 36M | -48M | -62M | 30M | -4M | 4M | 30M | 27M | -20M | -3M | 19M | -22M | 5M | -8M | -9M | -384.58M | -36.92M | -31.17M | -10.19M | -38.92M | 20.08M | -138K | 66.11M | -26.2M | 15.1M | 38M | 10.2M | -36.4M |
| Cash from Financing | -3.77B | -3.77B | -10.76B | -2.61B | -3.44B | -6.49B | -1.15B | -1.15B | -1.28B | -3.22B | -2.42B | -2.32B | -786M | 44M | -2.28B | -1.28B | -719M | -439M | -613M | -164.63M | -1.23B | -518.65M | 209.57M | -1.43M | 217.83M | 394.35M | 58.6M | 85.8M | 66.6M | 25.1M | 173.7M |
| Debt Issued (Net) | -196M | -296M | -708M | -384M | -800M | -120M | 792M | 419M | -6M | 1.35B | -1.02B | 1.08B | 178M | 3.69B | -313M | -540M | -71M | -114M | 170M | 1.7B | -2.14M | -264.78M | 174.16M | -42.18M | 147.15M | 325.23M | 1.12M | 8.8M | -27.1M | -52M | 134.1M |
| Equity Issued (Net) | -883M | -903M | -700M | -676M | -439M | -496M | -196M | -247M | -328M | -469M | -486M | -481M | -296M | -36M | -523M | -624M | -358M | -69M | -895M | -1.67B | -1.07B | -135M | 124.74M | 34.67M | 66.77M | 62M | -1.12M | 61.9M | 74.1M | 62M | 17.9M |
| Dividends Paid | -2.31B | -2.18B | -9.04B | -1.25B | -1.5B | -5.75B | -1.48B | -1.04B | -689M | -3.9B | -746M | -2.87B | -584M | -3.56B | -446M | -389M | -338M | -296M | -265.03M | -245.74M | -230.21M | -204.57M | -92.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -883M | -903M | -700M | -676M | -439M | -496M | -196M | -247M | -328M | -469M | -486M | -481M | -334M | -36M | -632M | -624M | -551M | -69M | -895.31M | -1.98B | -1.44B | -413.25M | 0 | 0 | 0 | 0 | -99.95M | 0 | 0 | 0 | 0 |
| Other Financing | -382M | -393M | -315M | -303M | -704M | -124M | -264M | -281M | -258M | -191M | -165M | -57M | -84M | -46M | -999M | 276M | 48M | 40M | 377M | 54.48M | 69.6M | 85.7M | 2.81M | 6.09M | 3.91M | 7.12M | 58.6M | 15.1M | 19.6M | 15.1M | 21.7M |
| Net Change in Cash | 5.11B | 4.25B | -3.79B | 3.5B | -1.05B | -1.02B | 3.89B | 2.33B | 1.51B | 1.17B | -1.42B | -937M | 1.09B | 1.12B | -481M | 795M | 57M | 538M | -160.3M | 1.27B | -551.65M | -760.55M | 1.28B | 739.92M | 202.93M | 78.08M | 83.92M | 78.6M | 186.5M | 73.4M | 56.3M |
| Free Cash Flow | 8.81B | 7.84B | 6.63B | 6.75B | 3.5B | 5.37B | 6.05B | 3.36B | 2.81B | 4.22B | 643M | 1.89B | 1.99B | 1.35B | 1.58B | 1.91B | 1.73B | 842M | 577.6M | 690.71M | 614.72M | 787.75M | 1.39B | 696.54M | -20.36M | -414.99M | -158.06M | 153M | 165.7M | 36.8M | -80.4M |
| FCF Margin % | 3% | 2.85% | 2.61% | 2.78% | 1.54% | 2.74% | 3.63% | 2.2% | 1.98% | 3.27% | 0.54% | 1.63% | 1.77% | 1.29% | 1.59% | 2.15% | 2.21% | 1.18% | 0.8% | 1.07% | 1.02% | 1.49% | 2.9% | 1.64% | -0.05% | -1.19% | -0.49% | 0.56% | 0.68% | 0.17% | -0.41% |
| FCF Growth % | 20.35% | 18.22% | -1.72% | 92.66% | -34.8% | -11.25% | 80.2% | 19.71% | -33.59% | 556.92% | -66.01% | -4.97% | 47.05% | -14.14% | -17.35% | 10.61% | 104.87% | 45.78% | -16.38% | 12.36% | -21.96% | -43.46% | 100.01% | 3520.8% | 95.09% | -162.54% | -203.31% | -7.66% | 350.27% | 145.77% | 68.12% |
| FCF per Share | 19.81 | 17.62 | 14.90 | 15.18 | 7.87 | 12.09 | 13.63 | 7.58 | 6.35 | 9.58 | 1.46 | 4.27 | 4.50 | 3.07 | 3.59 | 4.31 | 3.87 | 1.91 | 1.30 | 1.51 | 1.28 | 1.60 | 2.89 | 1.48 | -0.04 | -0.87 | -0.33 | 0.32 | 0.36 | 0.09 | -0.20 |
| FCF Conversion (FCF/Net Income) | 1.00x | 1.65x | 1.54x | 1.76x | 1.26x | 1.79x | 2.21x | 1.74x | 1.84x | 2.51x | 1.40x | 1.80x | 1.94x | 1.69x | 1.79x | 2.19x | 2.13x | 1.93x | 1.70x | 1.92x | 1.66x | 1.68x | 2.38x | 2.09x | 1.45x | 1.71x | 1.70x | 2.37x | 1.60x | 1.89x | 1.71x |
| Interest Paid | -81M | 106M | 129M | 125M | 145M | 149M | 124M | 141M | 143M | 131M | 123M | 117M | 109M | 86M | 112M | 111M | 110M | 104M | -106M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -1.65B | 2.92B | 2.32B | 2.23B | 1.94B | 1.53B | 1.05B | 1.19B | 1.2B | 1.19B | 953M | 1.19B | 869M | 1B | 956M | 742M | 637M | 565M | -615M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Domestic market saturation risks
As reported in recent financial statements, Costco consistently generates operating cash flow significantly exceeding net income, with an OCF/NI ratio reaching 1.57 in 2026Q3, which highlights the company's exceptional ability to convert accounting profits into tangible liquidity through its unique membership-driven, high-turnover retail business model.
The persistent gap between net income and operating cash flow suggests that the company's earnings quality is high, supported by the rapid collection of membership fees and efficient inventory management. Investors should note that this structural advantage allows the firm to fund operations and expansion with minimal reliance on external financing.
Based on the provided cash flow data, Costco's free cash flow trajectory remains robust, peaking at $3.2 billion in 2026Q1, which underscores the company's capacity to sustain capital-intensive growth while maintaining a strong liquidity position despite the inherent volatility of retail-sector working capital requirements.
The ability to maintain positive free cash flow margins even during periods of significant capital investment suggests that the underlying business model is highly self-sustaining. This trend appears to validate the company's strategy of prioritizing long-term warehouse expansion over short-term margin optimization.
According to recent SEC filings, Costco's capital intensity, measured by CapEx as a percentage of revenue, has remained tightly controlled between 1.8% and 2.3% over the last ten quarters, indicating a disciplined approach to funding new warehouse construction and infrastructure upgrades without overextending the balance sheet.
This consistent level of capital expenditure suggests that management is successfully balancing the need for physical footprint growth with the maintenance of existing assets. The stability of these figures implies that the company is not currently facing significant inflationary pressure on its construction or equipment procurement costs.
As evidenced by the quarterly cash flow statements, Costco frequently benefits from positive working capital changes, such as the $1.5 billion inflow recorded in 2026Q1, which reflects the company's structural advantage in collecting cash from members well before it must settle obligations with its merchandise suppliers.
This negative cash conversion cycle effectively provides the company with an interest-free source of financing that supports its lean operating model. While these fluctuations can be lumpy, they appear to be a core feature of the business that enhances overall cash flow stability.
Based on reported figures, Costco utilizes its excess cash flow to fund both organic growth and shareholder returns, including significant special dividends like the $7.1 billion payout in 2024Q2, demonstrating a commitment to returning capital to shareholders while maintaining a fortress-like balance sheet.
The company's preference for lumpy, special dividends over aggressive share repurchases suggests a management philosophy that prioritizes transparency and capital discipline. This approach appears to provide a buffer against market volatility while ensuring that shareholders benefit directly from the company's strong cash-generative capacity.
Quick answers to the most common questions about buying COST stock.
Costco Wholesale Corporation (COST) generated $13.34B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Costco Wholesale Corporation (COST) generated $7.84B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Costco Wholesale Corporation (COST) spent $5.50B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Costco Wholesale Corporation (COST) returned $2.18B to shareholders via cash dividends and spent $903.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.