Strengths 1 Low pricing strategy 2 Private label brands 3 High inventory

Strengths 1 low pricing strategy 2 private label

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Strengths 1. Low pricing strategy 2. Private label brands 3. High inventory turnover 4. Loyal employees Weaknesses 1. Limited access to global markets 2. Older consumer base 3. Limited graphical concentration External Opportunities 1. Growing millennial population 2. Increase geographical locations 3. Reliable suppliers 4. Increased desire for digital services Threats 1. High Competition 2. E-commerce operations 3. Economic influences 4. Changing prices of commodities
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COSTCO 17 Appendices
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COSTCO 18
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COSTCO 19 Exhibit 1: Selected Financial and Operating Data for Costco Wholesale Corporation, Fiscal Years 2000, 2005 and 2014-2017 ($ in millions except for per share data)
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COSTCO 20 Proforma income statement In Millions ofU.S. Dollars (except for per share items) 2019-2020 Revenue 34,740.0 Other Revenue, Total -- Total Revenue 34,740.0 Cost of Revenue, Total 30,233.0 Gross Profit 4,507.0 Selling/General/Admin. Expenses, Total 3,385.0 Research & Development -- Depreciation/Amortization -- Interest Expense, Net - Operating -- Interest/Investment Income - Operating -- Interest Expense(Income) - Net Operating -- Unusual Expense (Income) -- Other Operating Expenses, Total -- Total Operating Expense 33,618.0 Operating Income 1,122.0 Interest Expense, Net Non-Operating (35.0) Interest/Invest Income - Non-Operating 30.0 Interest Income(Exp), Net Non-Operating -- Gain (Loss) on Sale of Assets -- Other, Net 6.0 Net Income Before Taxes 1,123.0 Provision for Income Taxes 280.0
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COSTCO 21 Net Income After Taxes 843.0 Minority Interest (10.0) Equity In Affiliates -- U.S. GAAP Adjustment -- Net Income Before Extra. Items 833.0 Accounting Change -- Discontinued Operations -- Extraordinary Item 73.0 Tax on Extraordinary Items -- Net Income 906.0 Preferred Dividends -- General Partners' Distributions -- Miscellaneous Earnings Adjustment -- Pro Forma Adjustment -- Interest Adjustment - Primary EPS -- Income Available to Com Excl ExtraOrd 833.0 Income Available to Com Incl ExtraOrd 906.0 Basic Weighted Average Shares 439.86 Basic EPS Excluding Extraordinary Items 1.894 Basic EPS Including Extraordinary Items 2.060 Dilution Adjustment -- Diluted Weighted Average Shares 442.64 Diluted EPS Excluding ExtraOrd Items 1.882 Diluted EPS Including ExtraOrd Items 2.047 DPS - Common Stock Primary Issue 0.570
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COSTCO 22 Gross Dividends - Common Stock 285.0 Total Special Items -- Normalized Income Before Taxes 1,123.0 Effect of Special Items on Income Taxes -- Inc Tax Ex Impact of Sp Items 280.0 Normalized Income After Taxes 843.0 Normalized Inc. Avail to Com. 833.0 Basic Normalized EPS 1.894 Diluted Normalized EPS 1.882 Interim balance sheet In Millions ofU.S. Dollars (except for per share items) 2019-2020 Cash -- Cash & Equivalents 7,013.0 Short Term Investments 1,154.0 Cash and Short Term Investments 8,167.0 Accounts Receivable - Trade, Net 1,704.0 Notes Receivable - Short Term -- Receivables - Other -- Total Receivables, Net 1,704.0 Total Inventory 11,304.0 Prepaid Expenses -- Other Current Assets, Total 1,110.0 Total Current Assets 22,285.0
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COSTCO 23 Property/Plant/Equipment, Total - Gross 32,224.0 Accumulated Depreciation, Total (11,749.0) Property/Plant/Equipment, Total - Net 20,475.0 Goodwill, Net -- Intangibles, Net -- Long Term Investments -- Note Receivable - Long Term -- Other Long Term Assets, Total 992.0 Other Assets, Total -- Total Assets 43,752.0 Accounts Payable 11,331.0 Payable/Accrued -- Accrued Expenses 5,809.0
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