When it comes to leading supermarkets/appliance stores, Costco is at the top of the list with its humongous size and stable market. It's primary competitor is the Kroger company and I personally never thought they would have a competitor. Kroger is a pretty consistent company just that Costco had much more ass. Costco seems to be well known in a couple of states. Costco’s net margin is only 10 percent higher, it Costco has an earning multiple that is double Kroger. Krogers’s annual net income and annual dividend growth rate was a lot faster compared to costco’s over the past 7 years. Despite the rivalry Costco and Kroger both operate in the retail business two very similar companies. Financially Kroger and Costco aren't to far apart but Costco
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Costco is a better known store so it is no coincidence that costco's investments are higher than Kroger’s. Kroger company had zero investments for the year of 2017. The net cash used in investing activities for Costco was -2,366. “Costco stock is currently trading at 30 trailing earning multiple while Kroger company trades at 15 trailing multiple”(Patel). The working capital is very interesting and is full of surprises. The quarter that just ended for Costco which ended on August 2017 was $375 mil which means there working capital increased. Costco's working capital just continues to grow. Costco wholesale working capital has increased by $2,171 mil since the end of the quarter in August. The Kroger company working capital declined by $235 mil at the end of July 2017. As I was stating before Kroger has had a bad fiscal year but the numbers obtained in 2017 do not reflect what the company has accomplished in so little …show more content…
The current ratio for Costco is at 0.99 for the year 2015. The current assets for Costco are $17,317. The current liabilities for Costco are $17,495. The current ratio for Kroger is 0.873 for this year. The current ratio for Kroger has been back on the rise. The company’s ability to pay short-term debts and other current liabilities speaks volume. The ratio helps a company ability to remain solvent. The current ratio are not balanced out because they both tend to stumble. The preferred stock for equity is .005 per value. The total equity for Costco was $11,234 last year 2016. The total equity for Kroger was -0.24. “During the past 13 years, The Kroger co. highest days inventory was 32.12 the lowest was 28.20 and the median was 25.87”(Guru). The Kroger company days inventory stayed the same within a year between July 2016 and July 2017. “During the past 13 years, Costco wholesale corp highest days inventory was 31.83 and the lowest was 28.51 and the median was 30.03. Costco's days in inventory are ranked higher than 57 percent of the 367 companies. Costco seems to have the upper hand on Kroger but a well known organization and very
Costco is a better known store so it is no coincidence that costco's investments are higher than Kroger’s. Kroger company had zero investments for the year of 2017. The net cash used in investing activities for Costco was -2,366. “Costco stock is currently trading at 30 trailing earning multiple while Kroger company trades at 15 trailing multiple”(Patel). The working capital is very interesting and is full of surprises. The quarter that just ended for Costco which ended on August 2017 was $375 mil which means there working capital increased. Costco's working capital just continues to grow. Costco wholesale working capital has increased by $2,171 mil since the end of the quarter in August. The Kroger company working capital declined by $235 mil at the end of July 2017. As I was stating before Kroger has had a bad fiscal year but the numbers obtained in 2017 do not reflect what the company has accomplished in so little …show more content…
The current ratio for Costco is at 0.99 for the year 2015. The current assets for Costco are $17,317. The current liabilities for Costco are $17,495. The current ratio for Kroger is 0.873 for this year. The current ratio for Kroger has been back on the rise. The company’s ability to pay short-term debts and other current liabilities speaks volume. The ratio helps a company ability to remain solvent. The current ratio are not balanced out because they both tend to stumble. The preferred stock for equity is .005 per value. The total equity for Costco was $11,234 last year 2016. The total equity for Kroger was -0.24. “During the past 13 years, The Kroger co. highest days inventory was 32.12 the lowest was 28.20 and the median was 25.87”(Guru). The Kroger company days inventory stayed the same within a year between July 2016 and July 2017. “During the past 13 years, Costco wholesale corp highest days inventory was 31.83 and the lowest was 28.51 and the median was 30.03. Costco's days in inventory are ranked higher than 57 percent of the 367 companies. Costco seems to have the upper hand on Kroger but a well known organization and very