Here is the synopsis of our sample research paper on Costco and Best Buy. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4 page paper compares the financial performance of Costco and Best Buy, between 2004 and 2006. The paper looks at operating performance and profitability using gross, operating and net profit as well as return or assets and return on equity. Activity ratios are presented in the form of accounts receivable and payable turnover, inventory turnover and growth in revenue and inventory. The paper also looks at cash flow, share price, market capitalization and P/E ratio. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEcostbest.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
look at measures such as the total sales, the gross, operating and profit margins as well as the return on equity and the return on assets. These are given according
to the latest sets of available accounts. At Costco the revenues were a total of $48,107 million in 2004 and $53,935.2 in 2005 for Best Buy this was $24,547
million in 2004, $27,433 million in 2005, and as the 2006 accounts are available this is also given as $30,48 million. For Best Buy we will give 2004 - 2006
to allow for a direct comparison to be made of two years; 2004 and 2005. Sales are increasing for both companies, but the important element is not only turnover
by the level of profits that is being achieved. The gross profit margin in the level revenue loess the cost of goods sold as a percentage of the total revenue.
Costco had a gross profit margin of 12.5% in 2004 this decreased very slightly in 2005 to 12.4%. For best Buy this was much higher at 25.2% in 2004, and
fell to 23.7% in 2005 and then in 2006 increases again to 25%. The operating profit margin is the revenue after all direct and indirect costs have been deducted.
As well as the direct materials, there are also the indirect costs such as wages and administration, these are also known as the overheads expressed as a percentage of the
turnover. For Costco this was 2.9% in 2004 and 2.8% in 2005. For Best Buy this was 5.3% in 2004, 5.3% in 2005 and 5.3% in 2006. In both cases
they are very stable figures. This net profit is a common ratio which is used by many stakeholders and is a primary efficiency ratio. This measure of net profit
...