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Costco Financial Analysis
Location
Fort Laduerdale
Role
Served as the Financial Analyst and Lead Researcher, responsible for conducting Costco’s full FY2024 financial review. I performed ratio and DCF analysis, applied GAAP frameworks, benchmarked performance against peers, and transformed complex data into a clear, strategic valuation report.
This project delivers a comprehensive financial evaluation of Costco Wholesale Corporation’s FY2024 performance, blending accounting precision with strategic insight. The analysis focuses on three key components of Costco’s 10-K report—merchandise inventories, membership revenue, and operating cash flow—to assess how operational efficiency and customer loyalty drive long-term profitability.
Using GAAP frameworks (ASC 330 & ASC 606), DuPont profitability analysis, and a Discounted Cash Flow (DCF) valuation model, this study examines Costco’s ability to sustain growth while maintaining one of the lowest leverage ratios in retail. The results reveal exceptional efficiency, with an inventory turnover of 12.6×, ROE of 30.27%, and operating cash flow exceeding $11 billion.
The DCF model estimates Costco’s intrinsic value at $616 per share, compared to a market price near $935, indicating investor confidence rooted in brand trust and strategic consistency.
