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Company Project: Costco

Instructions:

Company Assigned: Costco

1. Analyze the company youve been assigned (Costco) and present the required information in Excel

a. Use financial information found in the companys most recent 10-K

b. Be aware that financial information and ratios are for the current and prior year

Objective: To utilize and apply financial accounting skills to make determinations about the health and performance of publicly traded companies by analyzing publicly available data. Students will:

1. Look up company information on a companys website

2. Look up company information on a government website

3. Read and identify company information in the companys corporate filings

4. Read and identify financial information in the companys financial statements

5. Analyze financial information by calculating financial ratios

6. Make reasoned conclusions on the relative health and performance of the companies

Required information:

General Information

Exact legal name

Brief description of what the business does

Companys ticker symbol

What exchange is the company traded on

Name of the CEO

State of incorporation

Fiscal year end

Companys independent auditor

Did the company receive an unqualified opinion

Income Statement (for current year and prior year)

Total Revenue

Total Cost of Sales

Gross Profit

Depreciation and Amortization

Income Tax Provision

Net Income

Balance Sheet (for current year and prior year)

Total Current Assets

Total Assets

Total Current Liabilities

Total Liabilities

Total Preferred Stock

Total Common Stock

Total Retained Earnings

Ratios (for current year and prior year)

Net Profit Margin

Gross Profit Margin

Fixed Asset Turnover

Return on Equity

Receivables Turnover

Current Ratio

Debt-to-Assets

Analysis

1. Comment on the health of the company referencing the profitability, liquidity and solvency ratios that you have calculated.

2. In what way did the companys financial health change from the prior year?

3. Would you invest in this company and why?

Answer & Explanation Solved by verified expert

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