Running head: INDIVIDUAL CASE STUDY 1 - COSTCO
1
Individual Case Study 1 - Costco
Marc Hoeksema
Liberty University
INDIVIDUAL CASE STUDY 1 - COSTCO
2
Individual Case Study 1 – Costco
Executive Summary
Costco is the world’s largest membership warehouse club and a multi-billion dollar
global retailer with a physical presence in 8 countries. As of March 2019, Costco owns and
operates a total of 770 warehouses worldwide. Its strategy and dedication is focused on a cost
leadership business plan that provides its membership-paying customer access to top-quality
goods and services at the lowest possible prices.
Mission, Objectives, and Strategies
The mission statement for Costco, as provided by its top three executives – Jeff Brotman,
Jim Sinegal, and Craig Jelinek in 2011 stated:
The company will continue to pursue its mission of bringing the highest quality goods
and services to market at the lowest possible prices while providing excellent customer
service and adhering to a strict code of ethics that includes taking care of our employees
and members, respecting our suppliers, rewarding our shareholders, and seeking to be
responsible corporate citizens and environmental stewards in our operations around the
world. [CITATION Cos \p 3 \l 1033 ].
This mission statement captures the essence of Costco’s business goals along with the
philosophies underlying them. It also delivers pure and precise direction to the overall business
practices of Costco, therefore, providing a clear vision to its employees, customers, suppliers,
and to the community. In addition to its existing mission statement, Costco has addressed the
global sustainability efforts and has incorporated its new environmental sustainability fit and
states:
INDIVIDUAL CASE STUDY 1 - COSTCO
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Sustainability to us is remaining a profitable business while doing the right thing. We
are committed to lessening our environmental impact, decreasing our carbon footprint,
sourcing our products responsibly, and working with our suppliers, manufacturers, and
farmers to preserve natural resources. This will remain at the forefront of our business
practices. [CITATION Cos171 \p 5 \l 1033 ].
As Costco continues to lead by example in the retail industry, its corporate leadership and the
culture they have established has helped to maintain and increase its competitive advantage over
its competition. Costco’s objective remains to provide the highest quality of products at the
lowest possible price along with treating everyone in its business circle with respect.
Costco utilizes the strategy of cost leadership within its business plan while also
implementing the membership club business model in order to differentiate itself from its
competition. To maintain its competitive advantage, Costco also uses a no-frills approach with
its warehouses and advertising except its monthly coupon flyer and its Costco Connection
magazine. Another strategic element for its plan is to sell a limited number of items, roughly
3,800 items, priced at reduced levels as selling limited items drive sales volume and enable
deeper discounts. Costco’s desire is to be recognized by its consumers and competitors as high
quality, low priced items that can be purchased in bulk to drive stronger discounts. The business
model that Costco employs makes its value proposition unique and extremely compelling. Its
high inventory turnover is critical with its strategic plan as it allows Costco to leverage its tight
margins items, such as gasoline and pharmacy, to drive customers into its warehouses. Costco
has strong partnerships with suppliers and can negotiate with them for the best deals, even when
inflation rises because brands trust Costco will use the cost savings to keep price tags in stores
down [ CITATION Nat183 \l 1033 ]. Through Costco’s strategic plan of cost leadership, its
INDIVIDUAL CASE STUDY 1 - COSTCO
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membership has now grown over 93 million members along with its extremely loyal following
as over 90% of its members renew their subscriptions each year.
New Mission Statement
(1) Costco’s mission is to attract businesses and affluent individuals that understand the
value of membership in order to obtain top-quality products and services at the lowest possible
price. (2) Costco offers a variety of products and services but limits its warehouse inventory to
roughly 3,800 different products including several from its superior, private label Kirkland
Signature. (3) Costco strategically places its average 144,000 square feet warehouses around
major metropolitan areas and coasts with the capacity to handle the membership base. (4)
Costco’s technology initiatives have greatly enhanced its recent e-commerce growth by offering
two-day online order delivery, same-day grocery delivery, email newsletters with “treasure hunt”
specialty offerings, and omni-channel transactions. (5) Costco commitment to long-term growth
and profitability is evident by its globalization efforts along with its sustainability efforts to
create long-lasting loyalty worldwide. (6) Costco’s underlying principles remain to be the core
of the organization and include obeying the law, taking exceptional care of its members and
employees, building a respectable relationship with its suppliers, and ultimately achieving the
overall goal of rewarding its shareholders. (7) The competitive advantage for Costco remains to
be offering top-quality products to its members at the lowest possible cost while building lifelong
loyalty among its members. (8) Costco’s sustainability initiatives have greatly expanded to
reduce its carbon footprint. Along with several animal, farm, and seafood initiatives, Costco has
also focused on warehouse energy-saving innovations and technologies, such as warehouse
roofing solar panels and water efficiency programs. (9) Employees in the organization are
among the highest paid and most satisfied within the retail industry along with reporting one of
INDIVIDUAL CASE STUDY 1 - COSTCO
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the lowest employee turnover ratios. Costco’s employees remain one of its highest assets and its
pledge and commitment to their career growth is second-to-none.
Existing Business Model
The business model for Costco delivers a strong value proposition to its customers by
providing ultra-low prices on a limited selection of nationally branded and its private-label
products in an extensive range of merchandise categories while offering very good to excellent
product quality [ CITATION Art19 \l 1033 ]. Costco’s business model has delivered long-term
success along with dominating the industry’s market share within the membership model and
retailer model alike by minimally marking up its products in favor of passing along lower costs
to its customers while providing high quality and differentiated products.
SWOT Analysis (exhibit 1)
Costco has been able to maintain its strong competitive advantage by its ability to deliver
a profitable balance by identifying the internal and external factors through its SWOT analysis.
The SWOT analysis entails the examination of internal strategic factors within its organization to
identify strengths and weaknesses and to also examine external strategic factors to determine
strategic opportunities and threats. Once the SWOT analysis is completed it allows the
organization to focus on various segments in order to recognize Costco’s potential or possible
downfalls in order to overcome any barriers and to also capitalize on any market vulnerabilities.
Costco is the second largest retailer in the world and has allowed Costco to maintain a
strong market presence along with continuing to dominate the industry’s market share. Costco
remains the largest membership club retailer which strengthens its competitive advantage over its
competition. Another strength for Costco is its expansive supply chain which allows Costco the
capability to accomplish economies of scale in connection with its low overhead cost operation.
INDIVIDUAL CASE STUDY 1 - COSTCO
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As part of its strategic plan, Costco aimed to deliver top-quality products and they have achieved
this strength by developing its private brand called Kirkland Signature.
One of the weaknesses that Costco faces among some of its retail competitors is the
limited product mix or extensive selection that other retailers may offer. This may prevent
maximization of revenues as not all consumers will be able to find what they need while
shopping at Costco and forcing them to shop at one of its competitors. Costco is a membership
only club and this may prevent segments of shoppers from purchasing items within its
warehouses due to the unwillingness or inability of purchasing an exclusive membership in order
to shop. Although part of its strategic cost leadership plan, another weakness is its low-profit
margin allowing minimal room for price adjustments. Costco maintains its pricing strategy
philosophy of marking up prices around 14 percent as opposed to the traditional 25 percent or
more or other retailers.
Costco has utilized several opportunities to diversify its business which includes Costco
Travel, product and grocery same-day delivery, Costco Auto Program, mortgage and insurance
options along with many other member-only services. Costco continues to expand its
warehouses domestically and internationally to capitalize on its strong market position. By
August 2018, Costco had 761 warehouses worldwide with over 200 warehouse stores outside the
US including 100 locations in Canada, Mexico 39, United Kingdom 28, Japan 26, Taiwan 13,
South Korea 14, Australia 10, Spain 2, Iceland and France [ CITATION Bar19 \l 1033 ]. Another
opportunity Costco continues to exploit is the expansion of its top-quality private label, Kirkland
Signature. Its consumers’ brand loyalty has enabled Costco to utilize its superior cost leadership
model by expanding its Kirkland Signature products and offerings.
INDIVIDUAL CASE STUDY 1 - COSTCO
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One of the most pressing threats to Costco’s competitive advantage is the intense
competition among the retail industry. Competitors, such as Walmart and Target, continue to
attempt the implementation of higher quality, lower cost products to compete with Costco. As
the e-commerce segment continues to expand at a ground-breaking pace, Costco continues to
face intense online competition with small and large online retailers. Sales growth decelerated
somewhat for Costco Wholesale Corporation during fiscal 2016, as foreign exchange rates and
gasoline price deflation impacted the top line [ CITATION MMR16 \l 1033 ].
BCG Matrix (exhibit 2)
The objective of the BCG analysis is the company’s focus in the allocation of resources
among different strategic areas of activity and set the strategic position based on market
attractiveness and competitive position [ CITATION The17 \l 1033 ]. Costco’s strategic business
activities will be placed in one of four classification to help determine to invest due to high
market growth or dissociate the activity due to low market growth or low market share. The 4
classifications are stars, cash cows, questions marks, and dogs.
Competitive Forces Analysis
Threat of New Entrants
Bargaining Power of Suppliers
Bargaining Power of Buyers
INDIVIDUAL CASE STUDY 1 - COSTCO
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Threat of Substitute Products or Services
CPM Matrix
The CPM Matrix of Costco will provide analysis on its strengths and weaknesses
compared to its competitors. Sam’s Club and BJ Wholesale Club are two of Costco’s biggest
competitors and the CPM illustrates that Costco is the market leader. Costco continues to
dominate the membership club industry by continuing to offer the highest quality of products and
the best possible price. Although Costco does very little in the way of advertising, its cost
leadership proposition and attracting customers through its low cost services; such as gas,
pharmacy, and grocery, has enabled Costco to maintain and increase its competitive advantage
over its competition.
Financial Statements and Analysis (exhibits 3-5)
Costco has positioned itself to continue to gaining market share from its competition due
to its cost leadership business model while other higher-cost retailers struggle. The expectations
from analysts for the 2019 fiscal year are projected to surpass $150 billion of annual revenue.
Costco’s performance level of this magnitude would provide massive economies of scale along
with tremendous buying power allowing itself to continue its increased competitive advantage.
The total revenue performance has continued to steadily increase year over year with Costco’s
revenue stream continuing to surge at a consistently strong growth rate. Costco’s has continued
to keep pace with the US retail industry as its organic performance continues to increase. Going
forward, it is expected that Costco will report earnings of $1.82 per share and revenues of $34.7
billion, implying growth of about 7 percent each and its membership revenue grew 7 percent
year-to-year to $768 million, due to new sign-ups and increased penetration [ CITATION
INDIVIDUAL CASE STUDY 1 - COSTCO
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Tre19 \l 1033 ]. Not only is its domestic revenue increasing but its international revenue stream
also continues to climb and will continue as it is introduced into new geographical locations.
Costco’s international segment contributes almost 23 percent of the company’s total revenues
and accounts for 22 percent of its value with expectations for its international segment to become
Costco’s fastest-growing segment and reach nearly $36 billion in revenues by 2020 [ CITATION
Tre18 \l 1033 ].
Ratio Analysis (exhibit 4)
Costco’s gross profit margin has maintained consistency through the last three years at 13
percent. The stable gross profit margin has been established by the consistent Costco strategic
business plan and represents an established organization that is good at selling its products or
services compared to its competitors. The ratio represents sales minus cost of goods sold. The
consistent gross profit margin ratio signifies business stability along with competitive advantage.
Costco derives most of its profits from annual membership fees charges for access to attractive
prices offered in its warehouses which allows the company to live with razor-thin margins on
merchandise and obtain a degree of insulation from price competition [ CITATION Lam17 \l
1033 ]. The current, quick and cash ratios have all been improving year over year. This is
crucial as it is significant with showing its current assets are greater than its current liabilities and
in Costco’s case it shows that inventory, the least liquid of all current assets, continues to move at
a more rapid pace. The current and quick ratio analysis supports the strategic plan that Costco
has implemented as they show continued signs of being able to cover its debt.
Alternative Strategies
INDIVIDUAL CASE STUDY 1 - COSTCO
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Net Present Analysis
Costco Wholesale Corporation’s current net income is $3.605 billion (12 months ending
as of May 31, 2019) which is a 19.77 percent increase year-over-year. Costco’s annual net
income for 2018 was $3.134 billion and that was an increase of 16.98 percent over its 2017
annual net income [ CITATION Nas19 \l 1033 ]. Costco’s earnings per share (EPS) for 2018 was
$7.09, a 16.61 percent increase from 2017. The annual revenue for Costco in 2018 was $141.576
billion which was a 9.73% increase from 2017 and its EBIT was $5.917 billion, a $7.95 percent
increase from 2017 [ CITATION Mac19 \l 1033 ].
INDIVIDUAL CASE STUDY 1 - COSTCO
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References
Costco Wholesale. (2011). Annual Report for the year ended August 28, 2011, p. 5.
Costco Wholesale. (2017). Annual Report for the year ended September 3, 2017, p. 3.
Farfan, B. (2019, January 3). Costco's Retail Innovation Craze. Retrieved from The Balance
Small Buainess: https://www.thebalancesmb.com/costco-international-expansion-and-
retail-innovation-2891768
Lamiman, K. J. (2017, October). Costco Wholesale Corporation. Better Investing, 67(2), 20-22.
Retrieved from http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1988024099?accountid=12085
Meyersohn, N. (2018, August 21). CNN Business. Retrieved from CNN.com:
https://www.cnn.com/2018/09/14/business/costco-warehouse-kirkland-signature-amazon-
retail/index.html
MMR. (2016, October 31). https://www.thebalancesmb.com/costco-international-expansion-and-
retail-innovation-2891768. MMR, 33(15), 11. Retrieved from
http://bi.galegroup.com.ezproxy.liberty.edu/global/article/GALE%7CA513926825?
u=vic_liberty&sid=summon
Nasdaq. (2019, June 15). Retrieved from Nasdaq:
https://www.nasdaq.com/symbol/cost/financials
Thompson Jr., A. A. (2019). Costco Wholesale in 2018: Mission, Business Model, and Strategy.
The University of Alabama.
Trefis & Great Speculations. (2019, March 8). An Overview Of Costco's Q2 And Beyond.
Retrieved from Forbes: https://www.forbes.com/sites/greatspeculations/2019/03/08/an-
overview-of-costcos-q2-and-beyond/#68f942dc3905
Trefis. (2018, January 02). How Will Costco's International Business Perform Going Forward?
Retrieved from Nasdaq.com: https://www.nasdaq.com/article/how-will-costcos-
international-business-perform-going-forward-cm899187
INDIVIDUAL CASE STUDY 1 - COSTCO
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Appendix 1
Strengths
•
Strong market presence & market share
•
Extensive supply chain/low overhead costs
•
Top-quality private brand (Kirkland
Signature)
•
Commitment to Quality/Consumer Loyalty
Weaknesses
•
Limited Product Mix
•
Exclusive to members only
•
Low profit margin/minimal pricing
adjustments
•
Geographic dependence
Opportunities
•
Diversification
•
Expansion of product mix/private label brand.
•
Expansion of locations, globalization
Threats
•
Intense competition in retail industry
•
E-commerce competition
•
Exposed to foreign currency fluctuations
Appendix 2
INDIVIDUAL CASE STUDY 1 - COSTCO
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Appendix 3
C S ' Clu BJ' W
C Su F
W
R
S
R
S
R
S
Membership Cost
0.05
3
0.15
3
0.15
3
0.15
Gas Option
0.05
3
0.15
3
0.15
4
0.20
Customer Service
0.10
4
0.40
3
0.30
3
0.30
Store Locations
0.05
3
0.15
3
0.15
1
0.05
Pharmacy Option
0.05
4
0.20
3
0.15
1
0.05
Employee Dedication
0.05
4
0.20
2
0.10
2
0.10
Financial Profit
0.10
4
0.40
3
0.30
2
0.20
Customer Loyalty
0.18
4
0.72
2
0.36
2
0.36
Market Share
0.10
4
0.40
3
0.30
1
0.10
Product Quality
0.10
4
0.40
2
0.20
2
0.20
Advertising
0.02
1
0.02
2
0.04
1
0.02
Price Competitiveness
0.15
4
0.60
3
0.45
2
0.30
Totals
1.00
3.79
2.65
2.03
INDIVIDUAL CASE STUDY 1 - COSTCO
14
Appendix 4
Costco's Annual Income Statement (values in 000's)
Period Ending:
9/2/2018
9/3/2017
8/28/2016
$118,719,00
Total Revenue
$141,576,000
$129,025,000
0
$102,901,00
Cost of Revenue
$123,152,000
$111,882,000
0
Gross Profit
$18,424,000
$17,143,000
$15,818,000
Operating Expenses
Sales, General and Admin.
Non-Recurring Items
Other Operating Items
$13,876,000
$68,000
$0
$12,950,000
$82,000
$0
$12,068,000
$78,000
$0
Operating Income
$4,480,000
$4,111,000
$3,672,000
Add'l Income/Expense Items
$121,000
$62,000
$80,000
Earnings Before Interest and Tax
$4,601,000
$4,173,000
$3,752,000
Interest Expense
$159,000
$134,000
$133,000
Earnings Before Tax
$4,442,000
$4,039,000
$3,619,000
Income Tax
$1,263,000
$1,325,000
$1,243,000
Minority Interest
($45,000)
($35,000)
($26,000)
Net Income - Cont. Operations
$3,134,000
$2,679,000
$2,350,000
Net Income
$3,134,000
$2,679,000
$2,350,000
Net Income Applicable to Common Shareholders
$3,134,000
$2,679,000
$2,350,000
Note. Information received from [ CITATION Nas19 \l 1033 ].
Income Statement
9/2/2017
9/3/2018
Percent Change
Revenues
$129,025
$141,576
1
9.73%
Cost of Goods Sold
111,882
123,152
1
10.07%
Gross Profit
17,143
18,424
1
7.47%
Operating Expenses
12,950
13,876
1
7.15%
EBIT
4,193
4,548
1
8.47%
Interest Expense
134
151
1
12.69%
EBT
4,059
4,397
1
8.33%
Tax
1,325
1,263
-1
-4.68%
Non-Recurring Events
(55)
0
-1
-100.00%
Net Income
2,679
3,134
1
16.98%
INDIVIDUAL CASE STUDY 1 - COSTCO
15
Appendix 3
Costco's Balance Sheet (values in 000's)
Period Ending:
9/2/2018
9/3/2017
8/28/2016
Current Assets
Cash and Cash Equivalents
$6,055,000
$4,546,000
$3,379,000
Short-Term Investments
$1,204,000
$1,233,000
$1,350,000
Net Receivables
$1,669,000
$1,432,000
$1,252,000
Inventory
$11,040,000
$9,834,000
$8,969,000
Other Current Assets
$321,000
$272,000
$268,000
Total Current Assets
$20,289,000
$17,317,000
$15,218,000
Long-Term Assets
Fixed Assets
$19,681,000
$18,161,000
$17,043,000
Other Assets
$860,000
$869,000
$902,000
Total Assets
$40,830,000
$36,347,000
$33,163,000
Current Liabilities
Accounts Payable
$15,288,000
$13,272,000
$11,110,000
Short-Term Debt
$0
$0
$1,100,000
Other Current Liabilities
$4,638,000
$4,223,000
$3,365,000
Total Current Liabilities
$19,926,000
$17,495,000
$15,575,000
Long-Term Debt
$6,487,000
$6,573,000
$4,061,000
Other Liabilities
$1,314,000
$1,200,000
$1,195,000
Minority Interest
$304,000
$301,000
$253,000
Total Liabilities
$28,031,000
$25,569,000
$21,084,000
Stock Holders Equity
Common Stock
$4,000
$4,000
$2,000
Capital Surplus
$6,107,000
$5,800,000
$5,490,000
Retained Earnings
$7,887,000
$5,988,000
$7,686,000
INDIVIDUAL CASE STUDY 1 - COSTCO
16
Other Equity
Total Equity
($1,199,000)
$12,799,000
($1,014,000)
$10,778,000
($1,099,000)
$12,079,000
Total Liabilities & Equity
$40,830,000
$36,347,000
$33,163,000
Note. Information received from [ CITATION Nas19 \l 1033 ].
Balance Sheet
9/2/2017
9/3/2018
Percent Change
Assets
Cash and Equivalents
$4,546
$6,055
1
33%
Accounts Receivable
1,432
1,669
1
17%
Inventory
9,834
11,040
1
12%
Other Current Assets
1,505
1,525
1
1%
Total Current Assets
17,317
20,289
1
17%
Property Plant & Equipment
18,161
19,681
1
8%
Goodwill
0
0
#DIV/0!
#DIV/0!
Intangibles
0
0
#DIV/0!
#DIV/0!
Other Long-Term Assets
869
860
-1
-1%
Total Assets
36,347
40,830
1
12%
Liabilities
Accounts Payable
13,272
15,288
1
15%
Other Current Liabilities
4,223
4,638
1
10%
Total Current Liabilities
17,495
19,926
1
14%
Long-Term Debt
6,573
6,487
-1
-1%
Other Long-Term Liabilities
1,501
1,618
1
8%
Total Liabilities
25,569
28,031
1
10%
Equity
Common Stock
4
4
0
0%
Retained Earnings
5,988
7,887
1
32%
Treasury Stock
0
0
#DIV/0!
#DIV/0!
Paid in Capital & Other
6,107
5,800
-1
-5%
Total Equity
12,099
13,691
1
13%
Total Liabilities and Equity
37,668
41,722
1
11%
Appendix 4
INDIVIDUAL CASE STUDY 1 - COSTCO
17
Costco's Statement of Cash Flow (values in 000's)
Period Ending:
9/2/2018
9/3/2017
8/28/2016
Net Income
$3,134,000
$2,679,000
$2,350,000
Cash Flows - Operating Activities
Depreciation
$1,437,000
$1,370,000
$1,255,000
Net Income Adjustments
$489,000
$471,000
$671,000
Changes in Operating Activities
Accounts Receivable
$0
$0
$0
Changes in Inventories
($1,313,000)
($894,000)
($25,000)
Other Operating Activities
$421,000
$807,000
$547,000
Liabilities
$1,561,000
$2,258,000
($1,532,000)
Net Cash Flow -Operating
$5,774,000
$6,726,000
$3,292,000
Cash Flows - Investing Activities
Capital Expenditures
($2,969,000)
($2,502,000)
($2,649,000)
Investments
$18,000
$106,000
$277,000
Other Investing Activities
$4,000
$30,000
$27,000
Net Cash Flows - Investing
($2,947,000)
($2,366,000)
($2,345,000)
Cash Flows - Financing Activities
Sale and Purchase of Stock
($328,000)
($469,000)
($486,000)
Net Borrowings
($6,000)
$1,346,000
($1,022,000)
Other Financing Activities
($258,000)
($191,000)
($165,000)
Net Cash Flows - Financing
($1,281,000)
($3,218,000)
($2,419,000)
Effect of Exchange Rate
($37,000)
$25,000
$50,000
Net Cash Flows
$1,509,000
$1,167,000
$1,422,000
Note. Information received from [ CITATION Nas19 \l 1033 ].
Appendix 5
INDIVIDUAL CASE STUDY 1 - COSTCO
18
Costco's Financial Ratios
Period Ending:
9/2/2018
9/3/2017
8/28/2016
Liquidity Ratios
Current Ratio
Quick Ratio
Cash Ratio
102% or 1.2
46% or .46
36% or .36
99% or .99
43% or .43
33% or .33
98% or .98
40% or .40
30% or .30
Profitability Ratios
Gross Margin
13%
13%
13%
Operating Margin
3%
3%
3%
Pre-Tax Margin
3%
3%
3%
Profit Margin
2%
2%
2%
Pre-Tax ROE
35%
37%
30%
After Tax ROE
24%
25%
19%
Note. Information received from [ CITATION Nas19 \l 1033 ].
PROJECT FORECAST
Projected Income Statement
12/31/2019
12/31/2020
12/31/2021
Revenues
$155,734
$171,307
$188,438
Cost of Goods Sold
135,488
149,037
163,941
Gross Profit
20,245
22,270
24,497
Operating Expenses
15,573
17,131
18,844
EBIT
4,672
5,139
5,653
Interest Expense
317
499
699
EBT
4,355
4,640
4,954
Tax
1,263
1,346
1,437
Non-Recurring Events
0
0
0
Net Income
3,092
3,295
3,517
Projected Balance Sheet
12/31/2019
12/31/2020
12/31/2021
Assets
Cash and Equivalents
$6,878
$4,956
$1,048
Accounts Receivable
3,504
5,522
7,741
Inventory
23,184
36,542
51,235
Other Current Assets
3,202
5,046
7,074
Total Current Assets
36,768
52,066
67,098
Property Plant & Equipment
41,330
65,143
91,337
Goodwill
0
0
0
Intangibles
0
0
0
Other Long-Term Assets
1,806
2,846
3,990
INDIVIDUAL CASE STUDY 1 - COSTCO
19
Total Assets
79,904
120,055
162,425
Liabilities
Accounts Payable
32,104
50,601
70,947
Other Current Liabilities
9,739
15,350
21,522
Total Current Liabilities
41,843
65,951
92,469
Long-Term Debt
12,909
19,267
25,562
Other Long-Term Liabilities
3,365
5,251
7,287
Total Liabilities
58,117
90,469
125,318
Equity
Common Stock
8
12
16
Retained Earnings
10,979
14,274
17,791
Treasury Stock
0
0
0
Paid in Capital & Other
10,800
15,300
19,300
Total Equity
21,787
29,586
37,107
Total Liabilities and Equity
79,904
120,055
162,425
