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Essay text:
Costco Wholesale Corporation entered the wholesale club industry in the early 1980s (Tayan, 2003). The idea behind a wholesale club was to maximize profits by minimizing operational costs and maximizing inventory turnover ratio. The company experienced tremendous growth from 1997 up to 2001 and has caught the attention of its competitors. Although growth has been phenomenal, the numbers are deceiving because return on assets, return on equity, and asset turnover ratios have declined within the same time frame.
SUMMARY
This paper focuses on how Costco Wholesales Corporation has become more efficient over time and how the company has financed its growth...
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