How well is Costco performing from a financial perspective? Do some number-crunching using the data in case Exhibit 1 to support your answer. Use the financial ratios presented in Table 4.1 of Chapter 4 (pages 8587) to help you diagnose Costcos financial performance.

Select yes for those statements below that are accurate and choose no for those that are not.

Net sales increased from $116.1 billion in fiscal 2016 to $149.4 billion in fiscal 2019, equal to a compound average growth rate (CAGR) of 8.8%; this growth rate is respectable but well short of excellent.

(Click to select) Yes No

Total revenues (sales plus membership fees) increased from $118.7 billion in fiscal 2016 to $157.2 billion in fiscal 2019, equal to a very respectable average annual compound rate of 9.8%.

(Click to select) Yes No

Net income rose from $2.35 billion in 2016 to $4.66 billion in 2019, a compound average growth rate of 20.9% which is certainly very good.

(Click to select) Yes No

Diluted net income per share increased from $5.32 in 2016 to $8.26 in 2019, a compound average growth rate of 15.8%.

(Click to select) Yes No

In fiscal 2019, Costcos operating profit margin was 2.74% in the U.S., 5.32% in Canada, and 4.83% in all other countries.

(Click to select) Yes No

Costcos operating profit margins are consistently higher outside the United States than inside the United States.

(Click to select) Yes No

In the past three fiscal years (20172019), Costcos capital expenditures in Canada and other international locations totaled $788 million in 2017, $923 million in 2018, and $812 million in 2019, clearly signaling that top management recognizes the merits of opening more warehouses outside the United States, most especially outside the United States and Canada.

(Click to select) Yes No

Costcos operating profit margins are consistently lower outside the United States than inside the United States.

(Click to select) Yes No

Total revenues decreased from $118.7 billion in fiscal 2016 to $105.2 billion in fiscal 2019.

(Click to select) Yes No