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Costco Wholesale Corp. in $2020$: Mission, Business Model, and Strategy

In this case, you'll explore co$-$founder and former CEO Jim Sinegal's style of managing, his values and business principles, the company's clever and innovative business model, the chief elements of its business strategy, and the company's financial performance.

Before completing these exercises, be sure to read the Costco case.

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 $4\mathrm{.}1$ of Chapter $4($pages $85-87)$ to help you diagnose Costco's financial performance.

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

Net sales increased from $$116\mathrm{.}1$ billion in fiscal $2016$ to $$149\mathrm{.}4$ billion in fiscal $2019,$ equal to a compound average growth rate $($CAGR$)$ of $8\mathrm{.}8\%$; this growth rate is respectable but well short of excellent.

$($Click to select$)$

Total revenues $($sales plus membership fees$)$ increased from $$118\mathrm{.}7$ billion in fiscal $2016$ to $$157\mathrm{.}2$ billion in fiscal $2019,$ equal to a very respectable average annual compound rate of $9\mathrm{.}8\%.$