A financial statement, ratio analysis involving a high-growth retail company. An individual shareholder in the Costco Wholesale Corp. is trying to evaluate the operational performance of the business she has invested in over the last five years. She seeks to answer two questions: Has Costco become more or less efficient over this time period? And how has it financed its growth? She organizes her analysis into three parts: common-size financial statements, sustainable growth modelling, and benchmarking ratios particular to retail companies. Provides information on developments in mass merchandising in the United States, with an emphasis on discounter retailing over the last 40 years. Costco's performance set in historical context provides the relative background information necessary to make a comparative evaluation between Costco and other industry participants.

Required

Based on the particulars provided in the case, prepare a case analysis report using the points below as your guide post.

1. Appraise the recent performance and financial position of Costco Wholesale Corporation Inc. using selected financial ratios and any other related tool as appropriate.
2. Would Margarita Torres, the individual shareholder still conclude that the company is a good investment risk?