ACCOUNTING-Costco Consolidated Statement of Income (amounts in Millions)

by | Aug 20, 2025 | Business

Costco Consolidated
Statement of Income (amounts in Millions) ~ Page 40 ~
Income Statement Horizontal Analysis Vertical Analysis
2015 2014 2013 2015 2014 2015 2014 2013
REVENUE
Net sales 113,666 110,212 102,870
3.13% 7.14% 97.82% 97.84% 97.83%
Membership fees 2,533 2,428 2,286
4.32% 6.21% 2.18% 2.16% 2.17%
Total revenue 116,199 112,640 105,156
3.16% 7.12% 100.00% 100.00% 100.00%
OPERATING EXPENSES
Merchandise costs 101,065 98,458 91,948
2.65% 7.08% 86.98% 87.41% 87.44%
Selling, general and
administrative		 11,445 10,899 10,104
5.01% 7.87% 9.85% 9.68% 9.61%
Preopening expenses 65 63 51
3.17% 23.53% 0.06% 0.06% 0.05%
Operating income 3,624 3,220 3,053
12.55% 5.47% 3.12% 2.86% 2.90%
OTHER INCOME (EXPENSE)
Interest expense -124 -113 -99 9.73% 14.14% -0.11% -0.10% -0.09%
Interest income and
other, net		 104 90 97
15.56% -7.22% 0.09% 0.08% 0.09%
INCOME BEFORE INCOME
TAXES		 3,604 3,197 3,051
12.73% 4.79% 3.10% 2.84% 2.90%
Provision for income
taxes		 1,195 1,109 990
7.75% 12.02% 1.03% 0.98% 0.94%
Net income including
noncontrolling interests		 2,409 2,088 2,061
15.37% 1.31% 2.07% 1.85% 1.96%
Net income attributable to
noncontrolling interests		 -32 -30 -22 6.67% 36.36% -0.03% -0.03% -0.02%
NET INCOME ATTRIBUTABLE TO COSTCO 2,377 2,058 2,039
15.50%

Segment
breakdown (dollars in billions)		 Total Revenue Share in
Revenue
2015 2014 2013 2015 2014 2013
United States 84,351 80,477 75,493 72.59% 71.45% 73.90%
Canada 17,341 17,943 14,179 14.92% 15.93% 13.88%
Other International 14,507 14,220 12,484 12.48% 12.62% 12.22%
Total 116,199 112,640 102,156 100.00% 100.00% 100.00%
Segment
breakdown (dollars in billions)		 Total Revenue Total Operating Income Operating Margin
2015 2014 2013 2015 2014 2013 2015 2014 2013
United States 84,351 80,477 75,493 2,308 1,880 1,810 2.74% 2.34% 2.40%
Canada 17,341 17,943 14,179 771 796 756 4.45% 4.44% 5.33%
Other International 14,507 14,220 12,484 545 544 487 3.76% 3.83% 3.90%
Total 116,199 112,640 102,156 3,624 3,220 3,053 3.12% 2.86% 2.99%
Segment
breakdown (dollars in billions)		 Total Operating Income Share in Operating Inc.
2015 2014 2013 2015 2014 2013
United States 2,308 1,880 1,810 63.69% 58.39% 59.29%
Canada 771 796 756 21.27% 24.72% 24.76%
Other International 545 544 487 15.04% 16.89% 15.95%
Total 3,624 3,220 3,053 100.00% 100.00% 100.00%
Segment
breakdown (dollars in billions)		 Increase in comparable warehouse
sales		 Increase in comparable warehouse
sales excluding impact of changes in foreign currency and gasoline		 Differential
2015 2014 2013 2015 2014 2013 2015 2014 2013
U.S. 3% 5% 6% 6% 5% 6% -3% 0% 0%
Canada -5% 2% 9% 8% 9% 9% -13% -7% 0%
Other International -3% 3% 1% 6% 4% 2% -9% -1% -1%
Total Company 1% 4% 6% 7% 6% 6% -6% -2% 0%
Change in SG&A as a percent of sales:
In BPS (basis points) 2015 2014
Positive impact of lower warehouse
operating costs		 16 1
Higher central operating costs -5 -3
Higher stock compensation expense -4 -2
Impact excluding lower gasoline prices 7 -4
Cost of
Sales and Inventory		 Horizontal Vertical
2015 2014 2013 2015 2014 2013 2015 2014 2013
Cost of Sales 101,065 98,458 91,948 2.65% 7.08% 302.23% 298.14% 303.63%
Inventory 8,908 8,456 7,894 5.35% 7.12% 26.64% 25.61% 26.07%
Total Assets 33,440 33,024 30,283
Key Items –
Annual report 2015		 Horizontal Vertical
2015 2014 2013 2015 2014 2013 2015 2014 2013
Net revenues 113,666 110,212 102,870 3.13% 7.14% 100.00% 100.00% 100.00%
Gross profit 12,601 11,754 10,922 7.21% 7.62% 11.09% 10.66% 10.62%
SG&A expenses 11,445 10,899 10,104 5.01% 7.87% 10.07% 9.89% 9.82%
Net Income 2,377 2,058 2,039 15.50% 0.93% 2.09% 1.87% 1.98%
0.93% 2.05% 1.83% 1.94%
Name Horizontal Consolidated Statements of Operations (USD $)
12 Months Ended
In
Millions		 Jan. 31, 2015 Feb. 01, 2014 Feb. 02, 2013
Sales $
72,618		 1.9% $
71,279		 -0.9% $
71,960
Credit card revenues 0 #DIV/0! 0 -100.0% 1,341
Total revenues 72,618 1.9% 71,279 -2.8% 73,301
Cost of sales (% is of Sales,
not of Total Revenues)		 51,278 2.5% 50,039 -1.0% 50,568
Selling, general and
administrative expenses		 14,676 1.5% 14,465 -1.2% 14,643
Credit card expenses 0 #DIV/0! 0 -100.0% 467
Depreciation and amortization 2,129 6.7% 1,996 -2.3% 2,044
Gain on receivables
transaction		 0 -100.0% (391) 142.9% (161)
Earnings from continuing
operations before interest expense and income taxes		 4,535 -12.3% 5,170 -9.9% 5,740
Net interest expense 882 -15.9% 1,049 53.4% 684
Earnings from continuing
operations before income taxes		 3,653 -11.4% 4,121 -18.5% 5,056
Provision for income taxes 1,204 -15.6% 1,427 -18.0% 1,741
Net earnings from continuing
operations		 $ 2,449 -9.1% $
2,694		 -18.7% $
3,315

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Name Vertical Consolidated Statements of Operations (USD $)
Note: To facilitate comparison across years, “Sales”
rather than “Total Revenues” are used in the denominator.
12 Months Ended
In
Millions		 Jan. 31, 2015 Feb. 01, 2014 Feb. 02, 2013
Sales $
72,618		 100.0% $
71,279		 100.0% $
71,960		 100.0%
Credit card revenues 0 0.0% 0 0.0% 1,341 1.9%
Total revenues 72,618 100.0% 71,279 100.0% 73,301 101.9%
Cost of sales (% is of Sales,
not of Total Revenues)		 51,278 70.6% 50,039 70.2% 50,568 70.3%
Gross Profit % (Sales –
COS)/Sales:		 29.4% 29.8% 29.7%
Selling, general and
administrative expenses		 14,676 20.2% 14,465 20.3% 14,643 20.3%
Credit card expenses 0 0.0% 0 0.0% 467 0.6%
Depreciation and amortization 2,129 2.9% 1,996 2.8% 2,044 2.8%
Gain on receivables
transaction		 0 0.0% (391) -0.5% (161) -0.2%
Earnings from continuing
operations before interest expense and income taxes		 4,535 6.2% 5,170 7.3% 5,740 8.0%
Net interest expense 882 1.2% 1,049 1.5% 684 1.0%
Earnings from continuing
operations before income taxes		 3,653 5.0% 4,121 5.8% 5,056 7.0%
Provision for income taxes 1,204 1.7% 1,427 2.0% 1,741 2.4%
Net earnings from continuing
operations		 $ 2,449 3.4% $
2,694		 3.8% $
3,315		 4.6%

Include
to balance sheet: For purposes of varifying calculation of other financial
ratios (i.e. Liquidity, Solvency and profitability)
show
how you got calculations.
Notes:
(1)
If your company does not report income from discontinued operations, you may
omit the phrase “from continuing operations” in the above earnings
captions.
(2)
For illustration purposes the Gross Profit % row was added to the normal
income statement.
Look
at the cost of sales and determine if it went up or down from what it was in the previous year. What
is contributing to the increase or decrease of cost of sales. (maybe this
could be due to change in the cost of merchandise or a result of delining
sales, etc)
Include gross profit b/c it
facilitates analysis. Speak to why the gross profit changed etc.
Speak to why the SG&A
declined/increased
NOTE: use 1.2% 20.2% 70.6% NOT
70.65% 20.63%
Compare across time: Time
series analysis. Year over year changes is needed as well.
Show how you calculated the
ratios