1. Present a recent (2020, 2019, 2018) three-year high-level summary of the COSTCO’s income statement, the balance sheet, and the statement of cash flows for the last three fiscal years. Do not include the full financial statements in the body of your paper. Discuss the key results over the last three years. Please get inside the numbers and provide in-depth explanations of the:
i. Income Statement – Numbers and a brief comment about the activity
ii. Balance Sheet – Numbers and a brief comment about the activity
iii. Statement of Cash Flows – Numbers and a brief comment about the activity
2. Perform a key ratio analysis from the most recent year to explain what caused the improvement or weakening of the ratios. Create five summary schedules, one for each ratio category, presenting four to five ratios for each category.
i. Liquidity (Solvency) ratios
ii. Efficiency ratios
iii. Debt ratios
iv. Profitability ratios
v. Market value ratios
The analysis should not be a list of ratios and it needs to include comments that only say that the ratio increased or decreased. It should try to highlight why the trends are what they are – your analysis should get inside the numbers. Do not define the ratios.