Costco Business Plan
Autor: SeanFIT • February 15, 2015 • Business Plan • 491 Words (2 Pages) • 1,082 Views
Company Summary
Costco Wholesale Cooperation and its subsidiaries began operations in 1983 in Seattle, Washington. In the time since Costco has become the premier member based wholesale distributor to consumers across the world. Costco is a publically traded on the NASDAQ Global Select Market.
Company Ownership
Costco Whole Sale and its subsidiaries is a publically traded C- corporation that operates under the over sight of its Board of Directors and Chief Executive Officer W. Craig Jelinek. Jeffery H Brotman is the chairman of the board as well as an original founder of Costco in 1983.
Company History
Since being founded in 1983, Costco has built itself up to be one of the premier wholesale distributors in the world. From 2011 through 2013, Costco has seen as steady increase in its yearly net sales and Gross Margin over a 52-week period. Furthermore, it has expanded to increase its total net property investment by 12% over that three-year period. Overall, Costco has shown itself to be a healthy, financially stable company with more growth on the horizon.
Past Performance ($M)* | |||
| 2013 | 2012 | 2011 |
Sales | $102,870 | $97,062 | $87,048 |
Gross Margin | $10,922 | $10,239 | $9,309 |
Gross Margin % | 10.62% | 10.55% | 10.69% |
Operating Expenses | $102,103 | $96,378 | $86,476 |
Collection Period (weeks) | 52 | 53 | 52 |
*Sources: 2012 and 2013 Costco Annual Report
Balance Sheet ($M)* | |||
| 2013 | 2012 | 2011 |
Current Assets |
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|
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Cash and Cash Equivalents | $4,644 | $3,528 | $4,009 |
Short Term Investments | $1,480 | $1,326 | $1,604 |
Receivables | $1,201 | $1,026 | $965 |
Merchandise | $7,894 | $7,069 | $6,638 |
Other | $621 | $550 | $490 |
Total Current Assets | $15,840 | $13,526 | $13,706 |
Property and Equipment |
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|
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Land | $4,409 | $4,032 | $3,819 |
Buildings | $11,556 | $10,879 | $10,278 |
Equipment | $4,472 | $4,261 | $4,002 |
Construction in progress | $585 | $374 | $269 |
Depreciation | -$7,141 | -$6,585 | -$5,936 |
Net Property and Equipment | $13,881 | $12,961 | $12,432 |
Other Assets | $562 | $653 | $623 |
Total Assets | $30,283 | $27,140 | $26,761 |
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Current Liabilities |
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Accounts payable | $7,872 | $7,303 | $6,544 |
Accrued Salaries and Benefits | $2,037 | $1,832 | $1,758 |
Accrued Member Awards | $710 | $661 | $602 |
Accrued Sales and other taxes | $382 | $397 | $335 |
Deferred membership fees | $1,167 | $1,101 | $973 |
Other Liabilities | $1,089 | $966 | $938 |
Total Current Liabilities | $13,257 | $12,260 | $12,050 |
Long Term Liabilities | $4,998 | $1,381 | $1,253 |
Deferred Income Taxes and other | $1,016 | $981 | $885 |
Total Liabilities | $19,271 | $14,622 | $14,188 |
Equity |
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|
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Total Equity | $11,012 | $12,518 | $12,573 |
Total Liability and Equity | $30,283 | $27,140 | $26,761 |
*Sources: 2012 and 2013 Costco Annual Report
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