Performance Analysis of Costco Wholesale Corporation
Performance Analysis of Costco Wholesale Corporation
xxxx
Strayer University
FIN 534: Financial Management
Professor: xxxx
June 11, 2012
Costco Wholesale Corporation
Higher interest rates, levels of unemployment, consumer debt levels, and unsettled financial markets are general economic factors that can adversely affect the company’s financial performance. These key elements play an important role in how a company chooses to move forward operationally and financially. Therefore, it’s imperative that we as investors understand a company’s business strategy as well as have a general knowledge of issues which may impact their decisions. Prior to investing, we should review a company’s operations, stock price, and their ratios to decide if a firm a financially stable to meet their obligations.
Company Overview Costco Wholesale Corporation and its subsidiaries (Costco) began operations on September 15, 1983 in Seattle, Washington. James Sinegal and Jeffery Brotman founded it. In October 1993, Costco merged with The Price Company, which established the membership warehouse model, to form Price/Costco, Inc. In January1997, the company changed its name to Costco Wholesale and all Price Club locations were rebranded as Costco Companies, Inc. August 30, 1999, the company was reincorporated and its name was changed to Costco Wholesale Corporation. To date, the company has grown to become the largest warehouse club retailer and the second largest general retailer in the United States. The company currently operates 602 warehouses, which include 435 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, 13 in Japan, 8 in Taiwan, 7 in Korea, and 3 in Australia (Costco Wholesale Corporation). Additionally, a division of the company, Costco Wholesale Industries, operates manufacturing businesses such as special food packaging, optical laboratories, meat processing, and jewelry distribution (Costco Wholesale
xxxx
Strayer University
FIN 534: Financial Management
Professor: xxxx
June 11, 2012
Costco Wholesale Corporation
Higher interest rates, levels of unemployment, consumer debt levels, and unsettled financial markets are general economic factors that can adversely affect the company’s financial performance. These key elements play an important role in how a company chooses to move forward operationally and financially. Therefore, it’s imperative that we as investors understand a company’s business strategy as well as have a general knowledge of issues which may impact their decisions. Prior to investing, we should review a company’s operations, stock price, and their ratios to decide if a firm a financially stable to meet their obligations.
Company Overview Costco Wholesale Corporation and its subsidiaries (Costco) began operations on September 15, 1983 in Seattle, Washington. James Sinegal and Jeffery Brotman founded it. In October 1993, Costco merged with The Price Company, which established the membership warehouse model, to form Price/Costco, Inc. In January1997, the company changed its name to Costco Wholesale and all Price Club locations were rebranded as Costco Companies, Inc. August 30, 1999, the company was reincorporated and its name was changed to Costco Wholesale Corporation. To date, the company has grown to become the largest warehouse club retailer and the second largest general retailer in the United States. The company currently operates 602 warehouses, which include 435 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, 13 in Japan, 8 in Taiwan, 7 in Korea, and 3 in Australia (Costco Wholesale Corporation). Additionally, a division of the company, Costco Wholesale Industries, operates manufacturing businesses such as special food packaging, optical laboratories, meat processing, and jewelry distribution (Costco Wholesale
Bibliography: Bucknell. (2012). Costco- "Always Puttien Employess and cusotmers First". Retrieved June 2012, from Wordpress.com: http://bizgovsociii.wordpress.com/2012/04/17/costco-always-putting-employees-and-customers-first/ Costco Wholesale Corporation. (n.d.). Company Profile. Retrieved 06 09, 2012, from Costco Wholesale Corporation: http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-homeprofile Investopedia. (2012). Financial Performance. Retrieved 2012, from Investopedia.com: http://www.investopedia.com/terms/f/financialperformance.asp#axzz1y5N9y6ZQ Mergent. (2012). Costco Wholsesale Corp . Retrieved 2012, from Mergentonline.com: http://www.mergentonline.com.libdatab.strayer.edu/equitypricing.php?compnumber=16720 Wikinvest. (n.d.). Costcost Wholesale (COST). Retrieved June 09, 2012, from Wikinvest: http://www.wikinvest.com/stock/Costco_Wholesale_(COST)#Business_Segments Wikipedia. (n.d.). Financial Ratio. Retrieved June 2012, from Wikipedia.org. Wire, T. S. (2012, June). Costco Wholesale Corporation Stock But Recommendation Reitereated (COST). Retrieved June 2012, from The Street Website: http://www.thestreet.com/story/11576376/1/costco-wholesale-corporation-stock-buy-recommendation-reiterated-cost.html?puc=TSMKTWATCH&cm_ven=TSMKTWATCH