ASSIGNMENT TWO – INDIVIDUAL REPORT- 75%
Case Study “Costco Wholesale Corporation” consists of two parts – “Costco Wholesale Corporation Financial Statement Analysis” (Part A) and “Costco Wholesale Corporation Financial Statement Analysis” (Part B).
Please address ALL the questions.
Pdf/Word/excel back up files
2,500 words, +/- 20%
Part A. Ratio Analysis
To access Part A, please use this link: https://www.thecasecentre.org/educators/courses?id=980322&pdid=91769&opid=651010
In this part, you will help an individual shareholder in Costco, Margarita Torres, to evaluate the operational performance of the company that she has invested over the last five years. You will answer the following questions, by using the provided case, in particular common-size financial statements, sustainable growth model, and benchmarking ratios used for the retail industry:
You are expected to analyse rather than calculate each provided ratio, allowing for a deeper discussion for interpreting the information. This analysis will help you to evaluate the health of Costco. In interpreting the ratios, you will be expected to qualitative information about the business, its strategy and operational performance.
Part B. Cash-Flow Analysis, Forecasting, Discounted Cash-Flow Valuation
To access Part B, please use this link: https://www.thecasecentre.org/educators/courses?id=980321&pdid=5584&opid=651009
In this part, you will help Margarita Torres to evaluate the future performance of Costco. She has evaluated her investment in two steps: she forecasted company’s performance several years into the future, and she has built a discounted cash-flow model.