Comparative Profitability Analysis of Costco and Target
Click the Poster to View Full Screen, Right click to save image
Jiangyi Ling
College:
College of Business and Public Management
Major:
Accounting
Faculty Research Advisor(s):
Huaibing Yu
Abstract:
This study provides an in-depth comparative analysis of the profitability of two retail giants, Costco Wholesale Corporation (COST) and Target Corporation (TGT). This research covers a wide range of aspects to comprehensively understand their market position, financial health, operational strategies, and prospects. To assess their financial performance in the retail industry. Using the latest fiscal year data, key financial indicators such as gross profit margin, operating profit margin, net profit margin, return on assets (ROA), and return on equity (ROE) were analyzed. The analysis reveals clear operational efficiencies and financial strategies between Costco, which has a high-volume sales model, and Target, which is known for its diverse product offerings and strong digital presence. Despite their different approaches, both companies are financially sound, with Costco demonstrating superior asset and inventory management efficiency. This study provides insights into the competitive dynamics of the retail industry and reveals how operating models impact profitability and financial soundness.