Question
Based on the annual income statements and balance sheets of Costco Wholesale Corporation in 2018 and 2019 (ticker symbol: COST) found on http://morningstar.com, calculate the
Based on the annual income statements and balance sheets of Costco Wholesale Corporation in 2018 and 2019 (ticker symbol: COST) found on http://morningstar.com, calculate the annual rate of growth (% change) in revenue, gross profit, operating income, net income, and total assets. Additionally, calculate the Costcos gross margin (gross profit/revenue), operating margin (operating profit/revenue), profit margin (net income/revenue), asset turnover ratio (revenue/assets), operating return on assets (OROA = operating income/assets), and return on assets (ROA = net income/assets) for fiscal year 2018 and 2019. Based on your calculations: What do we learn about Costcos ability to control their expenses in 2019 compared to 2018? What do we learn about Costcos ability to generate revenue from their assets in 2019 compared to 2018? What do we learn about Costcos ability to generate profits from their assets in 2019 compared to 2018? (Maximum of two well-written sentences per question).
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