Costco Wholesale Corporation strong Its strength are If we look at the financial statements of the company we can find that the company is financially 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 2 The operating cost of the company is increasing because the company is able to reduce its 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 ii The cash from investing activity shows that the company cash outflow is more in the short term investment i e in non operating activity iii The overall has for the year 2008 has declined for the company Net Income liability expenses increasing Net Income Net Income 1 300 000 1 250 000 1 200 000 1 150 000 1 100 000 1 050 000 1 000 000 950 000 55 80 55 70 55 60 55 50 55 40 55 30 55 20 55 10 55 00 54 90 2006 2007 2008 If we look at the trend in net income of the company we can find that the company net income looks fluctuating but it has improved it net income in 2008 as compared to 2007 Debt ratio as a percentage of total assets Debt ratio as percent of total asset Debt ratio as percent of to tal asset 2007 2008 If we look at the debt ratio as percent of total asset we can find that the debt ratio is declining in 2008 as compared to 2007 i e the company is increasing equity to finance debt Debt as a percentage of total equity Debt as percent of total equity Debt as percent of total equity 127 00 126 50 126 00 125 50 125 00 124 50 124 00 123 50 123 00 122 50 2007 2008 As we can see that the debt as percent of total equity is declining in 2008 as compared to 2007 i e the company is increasing equity in its capital structure As we can see that there is nothing negative in 2008 for the company and this is the reason it has positive trend as compared to 2007 Hence there is no need to correct anything for the company
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