Costco Wholesale Corporation Inc.: Analysing Financial Condition and Performance

This individual project assignment is based on the case - Costco Wholesale Corporation Inc. Margarita Torres first purchased shares in Costco Wholesale Corporation in 1997 as part of her personal investment portfolio. Between 1997 and 2002, she added slightly to her holdings from time to time when the company sold stock/shares for what she felt was a reasonable valuation, and up to that time she did not sell any of her shares. Having watched Costco grow from 265 warehouses to now 365 worldwide, and from sales revenue of $21.8 billion to $34.1 billion, she wondered what factors led to such successful growth. She also wanted to determine whether those factors would still hold consistently going forward.

Required

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

2.Appraise the recent performance and financial position of Costco Wholesale Corporation Inc. using selected financial ratios and any other related tool as appropriate.

3.Would Margarita Torres still conclude that the company is a good investment risk?