Financial Analysis and Valuation of Costco

Wenlin Li

doi:10.54254/2754-1169/36/20231779

Research Article

Open access

Published on 10 November 2023

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Li,W. (2023). Financial Analysis and Valuation of Costco. Advances in Economics, Management and Political Sciences,36,17-23.

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Financial Analysis and Valuation of Costco

Wenlin Li *^,1,

¹ Beijing Technology and Business University

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/36/20231779

Abstract

This essay intends to offer an essential insight of the American retail giant Costco, using its business model, an accounting measurement, performance evaluation, and future estimation to determine whether it is a company worth investing in. The research is significant as it helps investors validate and evaluate their investment decisions in light of the rapid changes in the retail industry and the economic environment. The paper shows that Costco is an ideal company for investors to invest in, as it has a successful business mod-el that focuses on offering high-quality goods at low prices, providing excel-lent customer service, and paying its employees well. The company's ac-counting measurement is also reliable, with its financial statements reflecting its true financial performance. Furthermore, the paper evaluates Costco's performance over the years and finds that the company has consistently achieved strong financial results and has been able to maintain its competi-tive position in the retail industry. Finally, the paper provides a positive fu-ture estimation of Costco's performance based on the company's growth strategies and the anticipated growth in the retail industry. In conclusion, the fundamental analysis of Costco presented in this paper shows that the com-pany is a worthy investment for investors. The research is based on reliable data and analysis, which can be used to support investment decisions in the retail industry.

Keywords

retailing industry, accounting analysis, performance evaluation, strategic objectives

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References

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Cite this article

Li,W. (2023). Financial Analysis and Valuation of Costco. Advances in Economics, Management and Political Sciences,36,17-23.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

Conference website: https://www.icemgd.org/

ISBN：978-1-83558-093-6(Print) / 978-1-83558-094-3(Online)

Conference date: 6 August 2023

Editor：Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.36

ISSN：2754-1169(Print) / 2754-1177(Online)

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