Costco Wholesale Corporation (COST) has reported a 9.09 percent rise in profit for the quarter ended May 10, 2015. The company has earned $516 million, or $1.17 a share in the quarter, compared with $473 million, or $1.07 a share for the same period last year.
Revenue during the quarter went up marginally by 1.19 percent to $26,101 million from $25,794 million in the previous year period. Total expenses were 96.85 percent of quarterly revenues, down from 97.14 percent for the same period last year. This has led to an improvement of 29 basis points in operating margin to 3.15 percent.
Operating income for the quarter was $821 million, compared with $737 million in the previous year period.
Working capital drops significantly
Costco Wholesale Corporation has witnessed a decline in the working capital over the last year. It stood at $898 million as at May 10, 2015, down 68.45 percent or $1,948 million from $2,846 million on May 11, 2014. Current ratio was at 1.05 as on May 10, 2015, down from 1.19 on May 11, 2014. Days sales outstanding went down to 2 days for the quarter compared with 4 days for the same period last year.
Debt comes down marginally
Costco Wholesale Corporation has recorded a decline in long-term debt over the last one year. It stood at $4,826 million as on May 10, 2015, down 3.19 percent or $159 million from $4,985 million on May 11, 2014. Total debt was 14.41 percent of total assets as on May 10, 2015, compared with 15.24 percent on May 11, 2014. Debt to equity ratio was at 0.45 as on May 10, 2015, up from 0.41 as on May 11, 2014. Interest coverage ratio deteriorated to 26.48 for the quarter from 29.48 for the same period last year.
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