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Capital structure of Costco

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Explain Costco's capital structure. Do they rely more heavily on debt or equity? What are their structure weights (%'s)? How does this structure contribute to the overall risk of the firm? Do you feel they have chosen an ideal capital structure? What would you do to improve their structure if you could be CEO for a day?

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This posting explains the capital structure of Costco.

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Costco's capital structure is more dependent on equity than debt. The total debt to equity ratio of Costco is 44.05%. This means the weight of debt is 44.05% whereas the weight of equity is 100%. This structure contributes to the relatively low overall risk of the firm. Costco has not chosen an ideal ...

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  • BSc, University of Calcutta
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