Costco

Costco’s balance sheet is exceptionally strong. At FY2024 end, it held $11.1B in cash and short-term investments. Against this, total interest-bearing debt was only ~$6B, meaning net cash of about $5–$6B – a net cash position. Equity is ~$23.6B.

The company generates massive operating cash flow ($11.3B in FY2024) and needs about $4.7B capex annually, leaving ~$6.6B of free cash flow – ample to cover dividends, buybacks and debt. Its inventory is financed in part by advance member fees and short payables.

Even in a severe downturn, Costco’s liquidity and low leverage mean bankruptcy risk is virtually nil.