MIRA
INFORM REPORT
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Report Date : |
15.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
COTSCO WHOLESALE
CORPORATION |
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Registered Office : |
999 Lake Drive, Issaquah, WA 98027 |
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Country : |
United States |
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Financials (as on) : |
31.08.2008 |
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Date of Incorporation : |
12.05.1987 |
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Com. Reg. No.: |
601024674 |
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Legal Form : |
Public Company |
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Line of Business : |
Operates Membership Warehouses |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 10,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Company
Name
COTSCO WHOLESALE CORPORATION
Company acronym: --
Contact Information
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Address |
999 Lake Drive, Issaquah, WA 98027, USA |
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Telephone |
425-313-8100 |
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Fax |
425-313-8114 |
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Website |
www.cotsco.com |
Registration Data
|
Date of Registration |
May 12, 1987 |
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Registration number |
601024674 |
|
Legal address |
999 Lake Drive, Issaquah, WA 98027, USA |
|
Legal Form |
Public Company (Nasdaq = COST) |
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Share Capital |
The number of shares outstanding of the registrant’s common stock as
of October 3, 2008 was 431,675,461. |
Shareholders
with Shares
The Company is quoted with the Nasdaq under symbol COST.
85% of the stock is held by institutional and mutual pension fund owners
including:
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DAVIS NEW YORK VENTURE FUND |
6.18% |
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MARSICO CAPITAL MANAGEMENT, LLC |
4.54% |
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Barclays Global Investors UK Holdings Ltd |
3.93% |
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VANGUARD GROUP, INC. (THE) |
3.14% |
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Board/Executive
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Name |
Jeffrey H. BROTMAN |
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Position within the company |
co-founder and Chairman |
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Name |
James D. SINEGAL |
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Position within the company |
co-founder, President and CEO |
Changes in
Registration Data
None recorded
Activities
(realistic and officials)
Costco Wholesale Corporation operates membership warehouses that offer a
selection of branded and private label products in a range of merchandise
categories in no-frills, self-service warehouse facilities. The company’s
product categories include candy, snack foods, tobacco, alcoholic and
nonalcoholic beverages, and cleaning and institutional supplies; appliances,
electronics, health and beauty aids,
hardware, office supplies, garden and patio, sporting goods, furniture,
and automotive supplies; dry and institutionally packaged foods; apparel,
domestics, jewelry, housewares, media, home furnishings, cameras, and small appliances; meat, bakery,
deli, and produce; and gas stations,
pharmacy, food court, optical, one-hour photo, hearing aid, and travel. It offers Business and Gold
Star (individual) memberships. As of August 31, 2008, Costco operated 512 warehouses comprising 394 in the United
States and 4 in Puerto Rico; 75 in
Canada; 20 in the United Kingdom; 8 in Japan; 6 in Korea; and 5 in Taiwan. It also offers its products
through Web sites costco.com in the U.S. and costco.ca in Canada.
Staff
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Number of staff employed |
75,000 |
Export/Import
(Countries, goods and total values for the period)
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Imports From |
Europe, Far East |
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Exports To |
- |
Facilities
|
Owned |
Warehouse and office |
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Premises Size |
50,000 sq. feet |
Subsidiaries
and Participation
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Parent Company |
Public Company |
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Subsidiaries |
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Affiliates |
- |
Branches
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Address |
The Company maintains numerous branches in the U.S. and Canada. |
Bankers
|
Bank |
JP Morgan Chase Bank Citibank |
Suppliers,
Partners
|
Suppliers |
Not known |
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Partners |
Not known |
Litigation,
Remarks on Payment
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Litigation |
None Recorded |
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Remarks on Payment |
No Complaints |
Financial
Information
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Source |
S.E.C. |
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Figures are |
Declared |
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Currency |
USD |
(in thousand
dollars)
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PERIOD ENDING |
31-Aug-08 |
2-Sep-07 |
3-Sep-06 |
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Total Revenue |
72,483,020 |
64,400,155 |
60,151,227 |
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Cost of Revenue |
63,502,750 |
56,449,702 |
52,745,497 |
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Gross Profit |
8,980,270 |
7,950,453 |
7,405,730 |
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Operating
Expenses |
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Selling General
and Administrative |
6,953,804 |
6,273,096 |
5,732,141 |
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Non Recurring |
57,631 |
68,771 |
47,957 |
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Operating Income or Loss |
1,968,835 |
1,608,586 |
1,625,632 |
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Income from Continuing
Operations |
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Total Other
Income/Expenses Net |
137,576 |
128,413 |
138,355 |
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Earnings Before
Interest And Taxes |
2,101,610 |
1,774,070 |
1,763,987 |
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Interest Expense |
102,636 |
64,079 |
12,570 |
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Income Before
Tax |
1,998,974 |
1,709,991 |
1,751,417 |
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Income Tax
Expense |
716,249 |
627,219 |
648,202 |
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Minority
Interest |
(4,801) |
1,449 |
- |
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Net Income From
Continuing Ops |
1,282,725 |
1,082,772 |
1,103,215 |
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Net Income |
1,282,725 |
1,082,772 |
1,103,215 |
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Preferred Stock
And Other Adjustments |
- |
- |
- |
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Net Income Applicable To Common Shares |
$1,282,725 |
$1,082,772 |
$1,103,215 |
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Reporter Comments
|
Comments |
The Company is facing a hard competition in the United States and a
slow market. |
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Local Reputation |
According to our credit analysts, during the last 6 months, 82% of
trade experience indicates a regular payment. Payments of imports are currently made with an average of 15 days
beyond terms. The Company maintains a regular business However, the banks and financial institutions confirmed a correct
credit history. The risk is low. |
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MAX CREDIT |
USD 10,000,000+ |
|
CREDIT REQUIRED |
MAXIMUM CREDIT |
|
Maximum |
USD 10,000,000+ |
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.94 |
|
UK Pound |
1 |
Rs.72.07 |
|
Euro |
1 |
Rs.64.70 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)