Find online the annual​ 10-K report for Costco Wholesale Corporation​ (COST) for fiscal year 2015​ (filed in October​ 2015).
a. Compute​ Costco's net profit​ margin, total asset​ turnover, and equity multiplier.
b. Verify the DuPont Identity for​ Costco's ROE.
c. If​ Costco's managers wanted to increase its ROE by percentage​ point, how much higher would their asset turnover need to​ be?
a. Compute​ Costco's net profit​ margin, total asset​ turnover, and equity multiplier.
The net profit margin is

Respuesta :

a.

The net profit margin is 2.05​%.  ​

The total asset turnover is 3.47.  

The equity multiplier is 3.15.​

b.

The ROE is 22.41​%.  

c.

The total assets turnover should be 3.76.

The total asset turnover should be 8.36​% higher.