‘Costco wholesales’ is a subscription business model that gives low prices of products to attract the customers. James Sinegal, the former CEO of Costco, and Jeffrey H. Brotan opened its first store in Seattle, Washington, on 1983. Costco only have almost 35 years of history, however, it now has about 174,000 employees and 81 million membership members. It located at 600 different area, and earn $93 billion in annual revenue. Among existing markets in the United States, we pick out the Walmart and the Target as the biggest competitors.…
In business, if the company’s current assets compared to current liabilities are a ratio of 2.1 it is expected the company will…
The risk that would be identified are: A review of cash flow statements and a recommendation of implementing new short-term working capital strategies on long-term cash flow, an explanation of corporate risk mitigation techniques…
In 2014 and 2015, this ratio would decline going from 1.87 to 1.03. Indicating that for every dollar of liabilities they had approximately one dollar of assets. This shows that over the past five years, Nordstrom has become less liquid. On the other hand, while Macy’s has been historically less liquid, and had a lower ratio of current liabilities to current assets, as of 2015, their current ratio was 1.34, which is lower than 2014’s but higher than Nordstrom’s 2015 current ratio, indicating that while their company is more liquid than Nordstrom this past fiscal year, they are less liquid and less capable of paying off short term bills than they were in…
Costco is a membership warehouse club that sells an extensive variety of merchandise in the United States. They have some products available to members only, but most of their products are available to the general public with an additional surcharge on certain products. Also, some popular products at Costco include hardware, electronics, furniture, and groceries. Furthermore, Costco also markets its own brand of merchandise under the name of Kirkland. Items under this brand name are more affordable and include a wide range of products such as bacon, beer, Greek yogurt, bread, and Colombian bean coffee.…
The current ratio is a liquidity ratio that shows a company’s ability to repay its immediate debts using its short-term assets, such as cash. It also reflects the company’s ability to generate cash from sales and inventory. The desired current ratio is above one (1.0), under (1.0) does not…
CORNING CASE MEMO Corning Inc. operates in telecommunications (telecom), advanced materials, and information display. The majority of its revenues comes from its telecom businesses in fiber and cable, hardware and equipment, and photonics. Strategic keys to the company’s success include a large research and development (R&D) component and also an affinity for strategic mergers and acquisitions (M&A). Corning was heavily impacted by the bursting of the tech bubble in early 2001.…
The stock is currently at the top of its 52 week range. The Annual Report was just released for the fiscal year September 1, 2014 to August 30, 2015. Costco had a good year and their sales are up 3% from the previous fiscal year. The Balance Sheet shows total Assets of $33, 440,000.…
When evaluating Costco’s strengths and weaknesses, we have too at Porters Five Forces. One being bargaining power of its customer, which is weak because of the exclusive prices Costco brings to the table. The threat of new entrants is also weak because Costco have majority of the market share. Another is the threat of a substitute product is possible because of the strong position that its competitors hold. Their rivalry is extremely aggressive.…
Problems: Costco wholesale is the third largest retailer in the United States and the seventh largest retailer in the world. They opened in 1983 and by the end of 1984 they had 9 store fronts in 5 states serving 200,000 members. Currently they have 598 warehouses in 40 states and Puerto Rico, Canadian provinces (82 locations), UK (22), Korea (7), Taiwan (8), Japan (11), Australia (3), 32 warehouses in Mexico. Costco’s fiscal 2011 total revenues were equal to 88.9 Billion with a net income of 1.46 billion. They currently service 25 million households and 6.4 million businesses.…
My particular area of interest is in the field of food and nutrition. I am most fascinated with diet care and healthy eating. The business in which has interested me the most in the field of food is Costco. This retail store does not directly deal with diet care or nutrition but is very influential when it comes to the food industry. Craig Jelinek, Costco’s CEO helped Costco get to where they are today, making them one of the most popular retailers.…
Good overview of Costco’s current situation and challenges. Smaller shopping carts and increasing in store promotions and social media are definitely needed, but you they don’t overcome the larger challenges when dealing with millenials. Items are sold in bulk and millennials typically don’t have a need for bulk purchases and store locations or transportation are also issues. Perhaps, combining online ordering with a simple way of splitting large purchases with others (Ex. A calculator that splits the costs of purchases between a particular # of people or inexpensive shipping to more than one address might be a solution.…
Capital Structure Debt and equity are the principal components of a company’s long term capital and capital structure describes this composition (combination of debt and equity) of the company’s permanent/long term capital. Capital structure is an indicator of how a firm finances its overall operations and growth using the different sources of funds available. It is a mix of long-term debt, short-term debt, common equity and preferred equity. Debt is in the form of bond issues or long-term notes payable while equity can be common stock, preferred stock or retained earnings. The proportion of short and long term debt is considered while analyzing the capital structure.…
This being said Google should maintain its current strengths of a successful audience which helped reach a high of $13,100,000,000 operating income for the current fiscal year. With the growth of the company over the last five years Google’s net income, gross profit, and revenue have gradually increased. Hitting a low point towards the end of 2008 and the beginning of 2009 then rising again in 2010. Even during a recession, a time of need, Google remained lucrative through its assets, liabilities, stable stock price, and efficiency for paying back…
I have a lot of things that are on my bucket list. Whether it’s becoming a better golfer or traveling the world, but one of the things I would love to do is own my own business and create multiple jobs along with multiple dollars. Two businesses that I would personally like to own is an insurance company and a clothing line. Lots of people don’t understand why people want to be business owners. They tend to think of all of the cons to it and not the pros, or they simply just don 't get it at all.…