Costco Wholesale Corporation If we look at the financial statements of the company we can find that the company is financially strong. Its strength are: 1. It has enough amount of current asset to repay its current liability. The current ratio of the
company 8.18 indicates that the company has $8.18 liquid asset to repay its $1 of current liability. 2. The operating cost of the company is increasing because the company is able to reduce its
expenses. 3. Cash from operating activity has increased for the company.
Apart from this strength the company also has some weakness in its financial statement: (i)
Increasing inventory indicates that the company inventory conversion period is increasing.
The cash from investing activity shows that the company cash outflow is more in the short term investment i.e. in non operating activity.
The overall has for the year 2008 has declined for the company.
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