Use the financial statements and the information below to compute the following 

1. Profitability and Coverage, Liquidity and Solvency ratios for 2018 and 2019: 

2. ROE, ROA and RNOA, times interest earned, free cash flow to debt, current ratio, quick ratio, liabilities‑to‑equity ratio, and total debt‑ to‑equity ratio. 

(Total assets, total equity, and equity attributable to Costco shareholders in 2017 were $36,347 million, $11,079 million and $10,778 million respectively.) Comment on any observed trends.

  

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Amounts in millions, except par value and share data Assets Current assets Cash and cash equivalents.. Short-term investments. Receivables, net. Merchandise inventories. Other current assets Total current assets. Property and equipment Land Buildings and improvements. Equipment and fixtures. Construction in progress. Less accumulated depreciation and amortization... Net property and equipment. Other assets.. Total assets. Liabilities and Equity Current liabilities Accounts payable Accrued salaries and benefits. Accrued member rewards. COSTCO WHOLESALE CORPORATION Consolidated Balance Sheets Deferred membership fees Current portion of long-term debt Other current liabilities Total current liabilities Long-term debt, excluding current portion Other liabilities Total liabilities Equity Preferred stock $0.01 Par value; 100,000,000 shares authorized; no shares issued and outstanding. Common stock $0.01 Par value; 900,000,000 shares authorized; 439,625,000 and 438,189,000 shares issued and outstanding. Additional paid-in capital. Accumulated other comprehensive loss Retained earnings.. Total Costco stockholders' equity Noncontrolling interests Total equity. Total liabilities and equity Sep. 1, 2019 Sep. 2, 2018 $8,384 1,060 1,535 11,395 1,111 23,485 6,417 17,136 7,801 1,272 32,626 (11,736) 20,890 1,025 45,400 11,679 3,176 1,180 1,711 1,699 3,792 23,237 5,124 1,455 29,816 4 6,417 (1,436) 10,258 15,243 341 15,584 $45,400 $ 6,055 1,204 1,669 11,040 321 20,289 6,193 16,107 7,274 1,140 30,714 (11,033) 19,681 860 40,830 11,237 2,994 1,057 1,624 90 2,924 19,926 6,487 1,314 27,727 0 4 6,107 (1,199) 7,887 12,799 304 13,103 $40,830 Amounts in millions, except par value and share data Assets Current assets Cash and cash equivalents.. Short-term investments. Receivables, net. Merchandise inventories. Other current assets Total current assets. Property and equipment Land Buildings and improvements. Equipment and fixtures. Construction in progress. Less accumulated depreciation and amortization... Net property and equipment. Other assets.. Total assets. Liabilities and Equity Current liabilities Accounts payable Accrued salaries and benefits. Accrued member rewards. COSTCO WHOLESALE CORPORATION Consolidated Balance Sheets Deferred membership fees Current portion of long-term debt Other current liabilities Total current liabilities Long-term debt, excluding current portion Other liabilities Total liabilities Equity Preferred stock $0.01 Par value; 100,000,000 shares authorized; no shares issued and outstanding. Common stock $0.01 Par value; 900,000,000 shares authorized; 439,625,000 and 438,189,000 shares issued and outstanding. Additional paid-in capital. Accumulated other comprehensive loss Retained earnings.. Total Costco stockholders' equity Noncontrolling interests Total equity. Total liabilities and equity Sep. 1, 2019 Sep. 2, 2018 $8,384 1,060 1,535 11,395 1,111 23,485 6,417 17,136 7,801 1,272 32,626 (11,736) 20,890 1,025 45,400 11,679 3,176 1,180 1,711 1,699 3,792 23,237 5,124 1,455 29,816 4 6,417 (1,436) 10,258 15,243 341 15,584 $45,400 $ 6,055 1,204 1,669 11,040 321 20,289 6,193 16,107 7,274 1,140 30,714 (11,033) 19,681 860 40,830 11,237 2,994 1,057 1,624 90 2,924 19,926 6,487 1,314 27,727 0 4 6,107 (1,199) 7,887 12,799 304 13,103 $40,830

Answer rating: 100% (QA)

To compute the financial ratios for profitability and coverage liquidity and solvency we need to use data from both the balance sheet and the income statement provided Lets calculate the ratios for 20... View the full answer