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Our analysis looks at four areas to understand their financial performance, the first, their ability to secure loans from banks and how much of their assets are financed from debt, next, their ability to be able to liquate assets if needed, their inventory turnover in a years time period, and finally the sales and profit margins. What we found was that Costco is doing well financially in key areas, with one area of caution being their profititability, which is below their direct competitors, and industry averages.
Beginning with the leverage ratios, how a company is financed is important in determining company performance and if it remains a sound investment...
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Common topics in this essay:
- Costco Case Analysis
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