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Overview Of Costco's Balance Sheet

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The balance sheet provides financial data at a specific date regarding a company’s assets, liabilities, and stockholder’s equity which is used to help predict future cash flows and assess a company’s flexibility. (Kieso et al., 2022)

Costco’s consolidated balance sheet reported total assets of $64,166(million) for FYE 2022 which are categorized as current assets and other assets. Costco’s short-term investments are debt security notes. Receivables consist of vendors discounts and rebates which are settled against any payable due the vendor, credit card incentives, reinsurance, third-party pharmacy due from members, and other governmental tax-related entities. Merchandise consists of inventory from United States, Canada, and internationally. Inventory in the United States is valued using …show more content…

(Form 10-K: Costco Wholesale Corporation, 2022) Total current assets for FYE 2022 were valued at $32,969(million) a 10.81% increase from 2021. Costco’s other assets listed on their balance sheet are property & equipment, net; operating lease right-to-use assets; and other long-term assets. For FYE 2022, other assets were valued at $34,470(million) which was an increase from 2021 at $29,763(million). Property & equipment is stated at cost with depreciation and amortization utilizing the straight-Iine method. Long term investments represent goodwill and acquired intangible assets. Goodwill is not subject to amortization and is evaluated for impairment in the fourth quarter each year. Overall, total assets reported an 8.26% increase in 2022. Costco reported $43,519(million) in total liabilities for FYE 2022, a 5.63% increase from 2021. COSTCO does have long-term liabilities in both long-term debt and long-term operating/finance leases. The long-term debt consists of Senior notes which total $6.5(million) with the final senior note due in April 2032. As for the operating/finance lease

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