2024 Cash Flow Analysis for Costco Wholesale Corporation COST

Costco Wholesale Corporation is a leading global retailer known for its membership-only warehouse clubs. Headquartered in Issaquah, Washington, Costco was founded in 1983 and has grown to become one of the largest retailers in the world. The company is renowned for offering a wide range of merchandise, including groceries, electronics, and apparel, at competitive prices.

The cash flow statement is a crucial financial document that outlines how much cash or cash equivalents a company has generated and utilized over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement provides valuable insights for investors and analysts into how effectively a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Costco Wholesale Corporation in 2024. The width of the bars signifies the amount of cash flow, with wider bars indicating larger amounts.

On the left, we begin with the company's cash position at the start of the fiscal year. Throughout the year, the cash position decreased, indicating that cash was utilized for financing and investing activities. The cash flow from operating activities is the primary source of cash, while investing activities resulted in an outflow.

The cash flow from investing activities is negative, suggesting that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, indicating that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the fiscal year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Costco Wholesale Corporation's cash flow, we have created a real-time counter that simulates the company's cash flow for 2024. The counter activates when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they occur, but a simulation based on the company's reported cash flow for 2024. The counter is designed to give you an understanding of the scale of the company's cash flow and its rapid movement.

Cash Flow Statement

In 2024, Costco Wholesale Corporation generated $11,339 million in cash from operating activities, spent $4,409 million on investing activities, and used $10,764 million for financing activities. Consequently, the company's cash balance decreased by $3,794 million during the fiscal year.

The company's beginning cash balance was $13,700 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The ending cash balance was $9,906 million.

The company's capital expenditures for the year amounted to $4,710 million. This figure represents the cash spent on investments in property, plant, and equipment. By subtracting capital expenditures from cash flow from operations, the company's free cash flow was $6,629 million in 2024. This amount represents the cash available to pay dividends, repurchase stock, or make other investments.

Summary

Costco Wholesale Corporation's cash flow in 2024 highlights several key aspects. The company maintained a strong cash flow from operating activities, which was sufficient to cover its capital expenditures and still generate a substantial free cash flow. However, significant outflows in both investing and financing activities led to a decrease in the overall cash position by the end of the fiscal year. This indicates that while the company is investing in its growth and returning value to shareholders, it is also managing its cash resources carefully to sustain its operations and strategic initiatives.