Would you be able to help me with this? I need one or two pages explaining how is it seen theSustainable Growth for Costco, attending the analysis done until now in these documents. Use these numbers and ratios. Make a table with the sustainable growth rates (INTC,AMD,Industry,TXN). Make a graph that pictures in images the percentages you put on the table. Note and explain what can be seen on the chart/table for each growth, if positive, volatility, the average timeframe relationship and the growth rates. And finally if the company is a what percentage healthy. Maybe I could be missing some information from other ratios, please, let me know and i will provide it to you. no more than one page and a half is needed. I hope you can help me.

Debt & Coverage The debt and coverage analysis that proceeds will be covering three ratios: Debt to Assets, debt to common equity and interest coverage. This analysis will be covering a span of 10 years of Costco, Target and Wal-Mart, as the average, which is the average of the three computed for this analysis. This will properly demonstrate Costco's comparable debt and coverage compared to its competition. Debt to Asset As demonstrated in below data. Costco has shown the highest debt to ratio and greatest movement within the last 10 years, as it started off at the lowest ratio and has ended in 2015 with the highest debt to asset ratio. This displays that Costco is using more debt to finance its assets rather than equity. The closer this ratio gets to 1.00 will show a higher risk for investors to invest into Costco. The significant spike in 2013 can be contributed by opening 26 new warehouses and the change in foreign exchange rates including the Canadian dollar and yen.(1) .700 .650 .600 .550 .500 .450 Costco Target Wal-Mart Industry .400 .350 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Debt to equity The debt to equity shows a similar pattern to the debt to assets, above, as Costco is again one of the highest ratios in this section. This implies that Costco is using more creditors financing than investors. Target is also showing the similar outcome. 2.300 2.100 1.900 1.700 Costco Target Wal-Mart Industry 1.500 1.300 1.100 .900 .700 .500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Interest Coverage Costco is showing a very high difference against competitors with its leading ability to cover its interest expense. This lower the interest ratio means the company is riskier and lower ability to pay off its interest expense. This would show a clear red flag in whether a lender would do lend funds to such a company. As Costco seems to have had a questionable ability to pay interest as it had a sharp dip in 2007, resulting primarily from 2007 senior notes, it has been steadily increasing over the past 6 years which shows a promising factor when lending companies look for the ability to have their interest payments paid and least likely to default on payments. (2) 70.000 60.000 50.000 40.000 Costco Target Wal-Mart Industry 30.000 20.000 10.000 .000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (1)http://phx.corporateir.net/External.File? t=1&item=UGFyZW50SUQ9NTI4MzE0fENoaWxkSUQ9MjE1NjQzfFR5cGU9MQ (2) http://media.corporate-ir.net/media_files/irol/83/83830/Annual_Report_2007.pdf Asset Management Working Capital Turnover Under review of Costco's asset management capabilities, we reviewed their Working Capital Turnover as well as their Inventory Turnover. With the Working Capital turnover, we have a better view of how the company is using Working Capital to generate sales. One of the most interesting observations is that generally, over the past ten years, Costco has maintained a higher working capital ratio than its Competitors, Walmart/Sam's Club and Target. In calculating the Working Capital, we excluded the membership fee revenues in order to compare net sales and compare apples to apples when comparing to competitors such as Target, which does not generate revenues from Membership Fees. Not only did Costco maintain higher capital ratios than its competitors; but when compared to Walmart, we noticed that Walmart maintained negative working capital ratios every year for the past ten years. This is a result of the company reporting negative working capital/more current liabilities than current assets. These ratios also drove down the Industry Average, so a comparison with an industry average, excluding Walmart, was done below. What this tells us is that certain business, like retail, specifically a giant like Walmart, have control over shelf-space, resulting in Walmart being able to negotiate payment terms for products they intend to sell, but if they don't sell, they return them to the suppliers. This results in the company collecting cash from its customers, this cash can be used for other growth purposes, instead of paying of their accounts payable immediately, since they know they'll be able to return the inventory or get extensions. In order to determine if this means that Walmart is more efficient than Costco, a further review of where it did invest its cash flow and other efficiency ratios is necessary. Costco maintained a positive working capital and working capital turnover ratio, signaling that the company has higher current assets than current liabilities in that it is using its working capital efficiently, even more efficiently than Target, to generate sales. Overall, the working capital turnover for Costco has been in control for the past ten years, with only one year (2008) showing slightly over its upper control limit. A close eye should be kept on it as the past three years there is a slight decrease in working capital turnover; which could be early signs of a decrease trend. Inventory Turnover Additionally, we reviewed the Inventory Turnover, which was measured by dividing net sales by average inventory. What this analysis told us is that the three companies compared: Costco, Walmart and Target, were very close in their inventory turnover ratio, and compared to the Industry Average, Walmart was the one that stayed closer to the industry average. Target performed lower than its competitors in this analysis, but overall maintained consistent ratios for the past ten years. Costco outperformed its competitors every year for the past ten years, in this measure of asset management, indicating that Costco is consistently better at managing its assets than its competitors. This can also been seen in the Days In Inventory chart below; showing that Costco's days in inventory was consistently lower than the industry average and lower than its competitors. Financial Analysis Financial statement analysis examines past and current financial data so that a company's performance and financial position can be evaluated and future risks and potential can be estimated. This analysis will use the financial information of Costco's financial statements, as well as its primary competitors, Walmart and Target, to assess the position of Costco with respect to these competitors and its industry. The areas to evaluate are the following: Return on Equity Decomposition, Profitability, Asset Management, Liquidity, Debt and Coverage, and Sustainable Growth using the data from 2006 to 2015. Return on Equity Decomposition This section is focused to evaluate the components of Costco's Return on Equity to obtain a deeper knowledge of how effectively its assets are used to create profitability and operating efficiency and to understand its capital structure. The components are the following: ROE = (Income/Equity) ROE = (Income/Assets) x (Assets/Equity) ROE = (Income/Sales) x (Sales/Assets) x (Assets/Equity) The following tables show the ROE components for Costco as well as Walmart and Target, for the past 10 years. Net Profit Margin Net profit margin measures how many dollars of profit a company generates based on its sales. In this case, the warehouse clubs and supercenters business is a low-margin industry typically ranging from 1 to 3 percent. Based on the chart, Costco is the company with the lowest net profit margin since its strategy is based on cost leadership to generate more sales at competitive prices. Second is Walmart including Sam's Club segment with an average net profit margin of 3.5%. Finally, Target has the highest net profit margin since it is a retail store that offer product with higher quality. Asset Turnover Asset turnover ratio measures the company's ability to generate sales for each dollar in assets. According to the chart, Costco is the leading company in generating sales with respect to each dollar in assets followed by Walmart. Financial Leverage Financial Leverage or equity multiplier measures the amount of dollars of assets the firm is able to deploy for each dollar invested by the shareholders. A high ratio means that a company is using more debt in relation to shareholder's equity. According to the chart, Walmart has an average equity multiplier of 2.5 which has been steady for 10 years meaning that its capital structure and financing structure have not change that much. On the other hand, Target and Costco have been increasing its dependence to debt. Return on Equity Costco in million in million in million Net incom Total Reve Total AssetTotal equity ### 33,440 10,843 2015 $ 2,377 2014 $ 2,058 112,640 33,024 12,515 2013 $ 2,039 105,156 30,283 11,012 2012 2011 2010 2009 2008 2007 2006 2005 Walmart BJs Costco ($ millions) Net Income Sales Net Profit Margin Total Assets Asset Turnover Return on Asset Shareholders Equity 1,767 $1,462 $ 1,303 1086.00 1283 1083 1103 1063 99,137 88,915 77946 71,422 72,483 64,400 60,151 52,952 27,140 26761 23,815 21,979 20,682 19,607 17,495 16,665 12,518 12573 10,930 10,104 9,192 8,623 9,143 8,881 485,651 203,490 476,294 204,751 468,651 203,105 446,950 193,406 421,849 180,663 408,085 170,407 404,254 163,429 378,476 163,514 348,368 151,193 312,101 138,187 284,310 120,223 85,937 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 16,363 16,022 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2,449 2,694 72,618 71,279 2,999 2,929 2,920 2,488 73,301 69,865 67,390 65,357 44,533 15,347 2006 1,103 60,151 1.83% 17,495 3.44 6.30% 9,143 16,999 15,699 16,389 14,370 13,381 12,731 11,284 11,231 10,267 Net profit margin 2.05% 1.83% 1.94% 1.78% 1.64% 1.67% 1.52% 1.77% 1.68% 1.83% 2.01% 3.37% 3.36% 3.63% 3.51% 3.89% 3.52% 3.31% 3.36% 3.24% 3.60% 3.61% 81,339 81,738 75,761 71,247 72,648 65,285 64,608 61,573 53,171 49,396 41,172 13,997 44,553 48,163 46,630 43,705 16,231 16,558 15,821 15,487 2,214 64,948 44,106 13,712 2,214 64,948 2,849 2,787 2,408 63,367 59,490 52,620 44,560 37,349 34,995 32,293 15,307 15,633 14,205 13,029 2007 1,083 64,400 1.68% 19,607 3.28 5.52% 8,623 2008 1,283 72,483 1.77% 20,682 3.50 6.20% 9,192 2009 1,086 71,422 1.52% 21,979 3.25 4.94% 10,104 2010 1,303 77,946 1.67% 23,815 3.27 5.47% 10,930 3.37% 3.78% 4.09% 4.19% 4.33% 3.81% 3.41% 3.41% 4.50% 4.68% 4.58% 2011 1,462 88,915 1.64% 26,761 3.32 5.46% 12,573 2012 2013 2,039 1,767 105,156 99,137 1.78% 1.94% 27,140 30,283 3.65 3.47 6.51% 6.73% 12,518 11,012 Financial Leverage Return on Equity 1.91 12.06% Walmart ($ millions) Net Income Sales Net Profit Margin Total Assets Asset Turnover Return on Asset Shareholders Equity Financial Leverage Return on Equity 2.27 12.56% 2.25 13.96% 2.18 10.75% 2.18 11.92% 2.13 11.63% 2.17 14.12% 2.75 18.52% 2006 2007 2008 2009 2010 2011 2012 2013 16,022 11,284 12,731 13,381 14,370 16,389 15,699 16,999 348,368 378,476 404,254 408,085 421,849 446,950 468,651 476,294 3.24% 3.36% 3.31% 3.52% 3.89% 3.51% 3.63% 3.36% 151,193 163,514 163,429 170,407 180,663 193,406 203,105 204,751 2.30 2.31 2.47 2.39 2.34 2.31 2.31 2.33 7.46% 7.79% 8.19% 8.43% 9.07% 8.12% 8.37% 7.83% 61,573 64,608 65,285 72,648 71,247 75,761 81,738 81,339 2.46 2.53 2.50 2.35 2.54 2.55 2.48 2.52 18.33% 19.70% 20.50% 19.78% 23.00% 20.72% 20.80% 19.70% Target ($ millions) Net Income Sales Net Profit Margin Total Assets Asset Turnover Return on Asset Shareholders Equity Financial Leverage Return on Equity 2006 2,849 63,367 4.50% 37,349 1.70 7.63% 15,633 2.39 18.22% 2007 2,214 64,948 3.41% 44,560 1.46 4.97% 15,307 2.91 14.46% 2008 2,214 ### 3.41% 44,106 1.47 5.02% 13,712 3.22 16.15% 2009 2,488 65,357 3.81% 44,533 1.47 5.59% 15,347 2.90 16.21% 2010 2,920 67,390 4.33% 43,705 1.54 6.68% 15,487 2.82 18.85% 2011 2,929 69,865 4.19% 46,630 1.50 6.28% 15,821 2.95 18.51% 2012 2,999 73,301 4.09% 48,163 1.52 6.23% 16,558 2.91 18.11% 2013 2,694 71,279 Net Profit Margin Costco Walmart Target Industry 2006 1.83% 3.24% 4.50% 3.19% 2007 1.68% 3.36% 3.41% 2.82% 2008 1.77% 3.31% 3.41% 2.83% 2009 1.52% 3.52% 3.81% 2.95% 2010 1.67% 3.89% 4.33% 3.30% 2011 1.64% 3.51% 4.19% 3.12% 2012 1.78% 3.63% 4.09% 3.17% 2013 1.94% 3.36% 3.78% 3.03% 3.78% 44,553 1.60 6.05% 16,231 2.74 16.60% Net Profit Margin 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2006 2007 2008 2009 Costco 2010 2011 Walmart 2012 Target 2013 2014 2015 Asset Turnover Costco Walmart Target Industry 2006 3.44 2.30 1.70 2.48 2007 3.28 2.31 1.46 2.35 2008 3.50 2.47 1.47 2.48 2009 3.25 2.39 1.47 2.37 2010 3.27 2.34 1.54 2.38 2011 3.32 2.31 1.50 2.38 2012 3.65 2.31 1.52 2.49 2013 3.47 2.33 1.60 2.47 Asset Turnover 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2006 2007 2008 2009 2010 Costco Financial Leverage Costco Walmart Target Industry 2006 1.91 2.46 2.39 2.25 2007 2.27 2.53 2.91 2.57 2008 2.25 2.50 3.22 2.66 2011 2012 Walmart 2009 2.18 2.35 2.90 2.47 2013 2014 2015 Target 2010 2.18 2.54 2.82 2.51 2011 2.13 2.55 2.95 2.54 2012 2.17 2.48 2.91 2.52 2013 2.75 2.52 2.74 2.67 Financial Leverage 3.50 3.00 2.50 2.00 1.50 1.00 2006 2007 2008 2009 Costco Return on Equity Costco 2006 12.06% 2007 12.56% 2008 13.96% 2009 10.75% 2010 2011 Walmart 2010 11.92% 2012 2013 2014 Target 2011 11.63% 2012 14.12% 2013 18.52% 2015 Walmart Target Industry 18.33% 18.22% 16.20% 19.70% 14.46% 15.58% 20.50% 16.15% 16.87% 19.78% 16.21% 15.58% 23.00% 18.85% 17.93% 20.72% 18.51% 16.95% 20.80% 18.11% 17.67% 19.70% 16.60% 18.27% Return on Equity 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2006 2007 2008 2009 Costco 2010 2011 Walmart 2012 Target 2013 2014 2015 2014 2,058 112,640 2015 2,377 116,199 1.83% 33,024 2.05% 33,440 3.41 6.23% 12,515 3.47 7.11% 10,843 14 2.64 16.44% 3.08 21.92% 2014 16,363 485,651 2015 14,694 482,130 3.05% 199,581 2.42 7.36% 83,611 2.39 17.57% 3.37% 203,490 2.39 8.04% 85,937 2.37 19.04% 2014 2,449 72,618 2.94 17.50% 2015 3,321 73,785 4.50% 40,262 1.83 8.25% 12,957 3.11 25.63% 2014 1.83% 3.37% 3.37% 2.86% 2015 2.05% 3.05% 4.50% 3.20% 3.37% 41,172 1.76 5.95% 13,997 Net Profit Margin 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2006 2015 2007 2008 Costco 2009 2010 Walmart 2011 Target 2012 2013 Industry 2014 2015 014 3 2014 3.41 2.39 1.76 2.52 2015 3.47 2.42 1.83 2.57 Asset Turnover 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2006 2007 2015 2008 Costco 2014 2.64 2.37 2.94 2.65 2009 2010 Walmart 2011 2012 2013 Target 2014 2015 Industry 2015 3.08 2.39 3.11 2.86 Financial Leverage 3.50 3.30 3.10 2.90 2.70 2.50 2.30 2.10 1.90 1.70 1.50 2006 2014 2008 Costco 2015 2014 16.44% 2007 2015 21.92% 2009 2010 Walmart 2011 2012 Target 2013 Industry 2014 2015 3 19.04% 17.50% 17.66% 17.57% 25.63% 21.71% Return on Equity 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2006 2014 2015 2007 2008 Costco 2009 2010 Walmart 2011 Target 2012 2013 Industry 2014 2015