Costco Wholesale Corp.

ROE (Return on Equity: indicative of the return with each shareholder’s equity) – 21.86%
For the past 3 years, according to Investopedia.com, there has been a steady increase in the ROE of Costco. From the fiscal years of 2013, 2014, and 2015, the ROE has been 17.58%, 17.79%, and 20.74%, respectively. This is a good sign because these years marked the recession but despite that economic downfall, the revenue for the company has been steadily increasing.
Liquidity Ratios
For the past couple of years, analysts have seen a slight decrease in the liquidity ratios of Costco. From 2015 to 2016, the current ratio, which shows a company ability to pay its short term debts, went down from 1.05 to 0.98. This means that that Costco Corp has a bit more liabilities than assets.
Solvency
Debt to Equity Ratio – 0.402%
According to Investopedia.com, a low D/E ratio infers a high investor confidence since it shows that the company is running more on investor support rather than through creditors. It can be seen that there is a downward trend in Costco’s Debt to Equity ratio and this is a good sign that the company is becoming more stable.
Net Margin – 2.43%
The net margin represents the amount of net income compared to the company’s revenue. This is an adequate but not amazing value but this shows that there is promise in the state of Costco’s business. This shows that the company is profitable compared to other companies.
Overall, I would summarize that Costco is a healthy business. It has above-average numbers however, there is promise as there is a slight but steady increase in the numbers that it produces. In terms of actual products, I would say that Costco is in good shape because the products that it sells are daily items that are necessities.