Calculate the following financial ratios for Costco using the financial statements provided in Exhibit $1$ in the case study. Table $4\mathrm{.}1$ on pages $93-95$ guides the calculation of the ratios.

Operating Profit Margin

Return on Assets $($ROA$)$

Return on Equity $($ROE$)$

Working Capital

Debt to Equity

Days of Inventory $-$ use Merchandise Cost for Cost of Goods Sold

Evaluate Costco$$s financial performance based on the financial calculations. Use your financial analysis and the data in case Exhibit $1$ to support your answer.

Based on the data in Exhibits $1,5,$ and $6,$ is Costco's financial performance superior to that at Sam's Club and BJ$\text{'}$s Wholesale? Explain.

Does the data in case Exhibit $2$ indicate that Costco's expansion outside the U$.$S$.$ is financially successful? Why or why not?

How well is Costco performing from a strategic perspective? Does Costco enjoy a competitive advantage over Sam's Club? Over BJ$\text{'}$s Wholesale? If so$,$ what is the nature of its competitive advantage? Does Costco have a winning strategy? Why or why not?