Profitability Analysis: Costco Wholesale vs. BJ's Wholesale Club
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Carolina Caballero-Mayoral
College:
College of Business and Public Management
Major:
Marketing
Faculty Research Advisor(s):
Huaibing Yu
Abstract:
Profitability analysis is an analytical process that seeks to reveal information about various revenue streams of the organization. This project will analyze the profitability of two major competitors: Costco Wholesale vs. BJ's Wholesale Club. Costco Wholesale and BJ's Wholesale Clubs are two wholesale clubs that focus on selling different types of products in bulk and services to their membership members only. The selected financial data that will be used to analyze the profitability ratios are net sales, gross profit, net income, operating income, shareholder's equity, and total assets. By comparing the profitability ratio of Costco Wholesale and BJ's Wholesale Club from 2019 to 2023, we can conclude how efficiently both wholesale stores can generate profit and value for their shareholders. To add more, by using data from a specific time point, we can see the business's ability to generate earnings. In conclusion, profitability analysis is an essential part that helps businesses analyze various ways to optimize and enhance profitability.