Costco's Horizontal/Trend Analysis (Essay Sample)
The instructions are to choose a publicly traded company either Ford Costco Walt Disney company or Amazon And scroll to the about the company section found at the bottom of the web page investor relations reports or findings and select a year. The financial statements for any given year will provide two years worth of data here you can perform a quick analysis of the company's financial health. The initial post horizontal analysis also called a trend analysis refers to studying the behavior of an individual financial statement items over several accounting periods 2 years for this assignment. Use the most current year as the base year and make a comparison of sales revenues operating expenses and net income what do you see. Give a 200 to 400 word summary post. For the reply post Prepare a follow-up response of 150 to 200 words explaining on how an investor might use information from a horizontal analysis. Take note (a single horizontal analysis is not a comprehensive analysis but you can infer how the firm is doing).
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Costco Horizontal analysis
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Costco is an American multinational corporation in the big-box retail industry. The horizontal analysis of Costco by comparing 2020 performance to 2021 in million USD was as shown below (Costco, 2022).
2021
2020
Horizontal analysis
Sales
192052
163220
18%
Revenues
195929
166761
17%
Operating expenses
Merchadise costs
170,684
144939
18%
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