How well is Costco performing from a financial perspective? Do some number-crunching using the data in case Exhibit 1 to support your answer. Use the financial ratios presented on pp. 231-232 of the text to help you diagnose Costcos financial performance.

( don't copy answer from here or other websites please write you own answer)****

use this formal to help you

544 78 46 53 EXHIBIT 1 Selected Financial and Operating Data for Costco Wholesale Corp., Fiscal Years 2000, 2005, 2011, and 2013-2016 ($ in millions, except for per share data) Fiscal Years Ending on Sunday Closest to August 31 Selected Income Statement Data 2016 2015 2014 2013 2011 2005 2000 Net sales $116,073 $113,666 $110,212 $102,870 $87,048 $51,862 $31,621 Membership fees 2.646 2,533 2,428 2 ,286 1.867 1,073 Total revenue 118,719 116,199 112,640 105.156 88,915 52,935 32,164 Operating expenses Merchandise costs 102,901 101,065 98,458 91,948 77,739 46,347 28,322 Selling, general, and administrative 12,068 11,445 10,899 1 0,104 8,682 5,044 2.755 Preopening expenses 63 51 42 Provision for impaired assets and store closing costs 7 3,672 Operating income 3,624 3,220 2439 3,053 Other income (expense) Interest expense (124) (113) (116) (34) (39) 80 90 Interest income and other 3,619 Income before income taxes 3,604 3,197 3,051 2.383 1.549 1,052 990 1.195 1,109 1.243 Provision for income taxes 841 486 $ 2,350 $ 2,377 Net income $ 2,058 $ 2,039 $ 1.462 $1,063 $ 5,33 $ 5.37 $ 4.65 $ 4.63 $ 3.30 Diluted net income per share $ 2.18 $ 1.35 Dividends per share (not including spe- cial dividend of $5.00 in 2015 and $ 1.70 $7.00 in 2013) $ 1.51 $ 1.33 $ 1.17 $ 0.89 $ 0.43 0.00 Millions of shares used in per share 441.3 442.7 442.5 440.5 443.1 492.0 calculations Balance Sheet Data $ 3,379 $ 4,801 $5,738 $ 4,644 Cash and cash equivalents $4,009 $ 2.063 1,037 (133) (99) 97 104 60 109 54 421 475.7 2009 $2.063 $ 525 Fiscal Years Ending on Sunday Closest to August 31 Selected Income Statement Data 2016 2015 2014 2013 2011 2005 2000 6 8,969 15,218 15,575 17,043 33,163 4,061 12,079 8,908 17,299 16,540 15,401 33.440 4,864 10.843 8.456 17.588 14.412 14,830 33,024 5,093 12,515 7,894 15,840 13,257 13,881 30,283 4,998 11.012 ,638 13,706 12,050 12,050 12,432 26,761 2.153 12,573 4,015 8.238 6,761 7.790 16,514 711 8,881 2,490 3,470 3,404 4,834 8,634 790 4.240 $3,292 $4,285 $3,984 $3,437 $3,198 $1,070 686 663 634 30 608 26 $1773 417 21 292 25 33 26 24 Merchandise inventories Current assets Current liabilities Net property and equipment Total assets Long-term debt Stockholders' equity Cash Flow Data Net cash provided by operating activities Warehouse Operations Warehouses at beginning of year New warehouses opened (including relocations) Existing warehouses closed (including relocations) Warehouses at end of year Net sales per warehouse open at year- end (in millions Average annual growth at warehouses open more than a year Members at year-end Businesses (000s) Gold Star members (000s) Add-on cardholders (employees of busi- ness members, spouses of Gold Star members) Total cardholders (3) 0 634 (4) 592 (4) 715 686 663 433 313 $161.0 $165.7 $164.0 $162.0 $147.1 $119.8 $101.0 4% 7% 6% 6% 10% 7% 11% 7,300 36,800 7,100 34.000 6,900 6,900 31,600 6,600 28,900 6,300 25,000 5,000 16,200 4,200 10,500 n.a. n.a. 42,600 86,700 40,200 81,300 37,900 76,400 35,700 71.200 32,700 64,000 Prior to 2011, the company's warehouses-30 of which were opened in 2007 and two others in 2008-2009-were consolidated and reported as part of Cosico's total operations at the beginning of fiscal 2011. Sales for new warehouses opened during the year are annualized. Note: Some totals may not add due to rounding and the fact that some line items in the company's statement of income were not included in this summary, for reasons of simplicity Sources: Company 10-K reports for fiscal years 2000, 2005, 2011, 2013, 2015 and 2016. Growth Rates: One Year Growth Rate (End Value - Begin Value) / Begin Value = Growth Rate Report as % Example: 5.67% (Ending Value/Beginning Value) VN-1 =CAGR Compound Annual Growth Rate (Use for Multiple Years) Report as % Example 4.75% Profitability Ratios: Gross Margin (Sales - Cost of Goods Sold) + (Sales) = GM Report as % Example 15.75% Operating Margin (Profits Before Interest and Taxes) + (Sales) HOM Report as % Example 11.67% Return on Sales (Net Income) - (Sales) - ROS Report as % Example 6.45% Return on Assets (Net Income) + (Total Assets) - ROA Report as % Example 4.45% Return on Equity (Net Income) - (Total Shareholder's Equity) - ROE Report as % Example 3.45% Earnings per Share (Net Income) - (Wof Common Shares Outstanding) EPS Report as S / Share Example S1.07/Share Lluny IS: Current Ratio (Current Assets)+(Current Liabilities) - Current Report as Ratio Example 2.13 Quick Ratio (Current Assets - Inventory) + (Current Liabilities) - Quick Report as Ratio Example 1.87 Leverage Ratios: Debt to Assets Ratio (Total Debt) - (Total Assets) = D/A Report as % Example 45.89% Debt to Equity Ratio (Total Debt) + (Total Shareholder's Equity) - D/E Report as % Example 143.29% Activity Ratios: Fixed Asset Turnover Equipo (Sales) + (Property, Plant & Equipment, Net) -FAT Report as Ratio Example 3.57 3333 (Sales) + (Total Assets) - TAT Report as Ratio Example 23.84 Inventory Turnover (Cost of Goods Sold) + (Inventory) - Inventory Turn Report as Ratio Example 28.34 Valuation Ratio: Price/Earnings Ratio (Market Price per Share) + (Earnings per Share) - P/E Ratio