Costco offer higher value for your money than Walmart or Target

Wal mart Target Costco

Wal mart, Target, and Costco

Profit margin and asset turn over are very good ratios to judge the performance of stores like Wal mart, Target, and  Costco. In the report shown a history of the two ratio since 2005. By comparing these two ratios for the three stores in this period many conclusions could be found out.  The most important conclusion is the asset turnover for Costco is around 1.5 the asset turnover for Walmart, and it is around 2.5 of the asset turn over for Target. This means Costco was able to sell around 3.5 times of it’s inventory annually, while Wal mart were able to sell around 2.5 times of it is inventory, and Target were able to sell  around 1.5 of it’s inventory.  On the other hand, it is clear that target is making the highest  profit margin then Wal mart, and Costco comes with least profit margin. This leads to the conclusion that Costco is offering you the best deal as it is making the least profit.

 

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