Costco Wholesale Corp
NASDAQ:COST
Operating Margin
Costco Wholesale Corp
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Operating Margin Across Competitors
| Country | Company | Market Cap |
Operating Margin |
||
|---|---|---|---|---|---|
| US |
|
Costco Wholesale Corp
NASDAQ:COST
|
455B USD |
4%
|
|
| US |
|
Walmart Inc
NYSE:WMT
|
771.5B USD |
4%
|
|
| MX |
|
Wal Mart de Mexico SAB de CV
BMV:WALMEX
|
1.1T MXN |
8%
|
|
| JP |
|
Aeon Co Ltd
TSE:8267
|
3.7T JPY |
2%
|
|
| AU |
|
Coles Group Ltd
ASX:COL
|
29.2B AUD |
5%
|
|
| US |
|
BJ's Wholesale Club Holdings Inc
NYSE:BJ
|
15.5B USD |
4%
|
|
| TH |
S
|
Siam Makro PCL
SET:MAKRO
|
380.9B THB |
4%
|
|
| FR |
|
Carrefour SA
PAR:CA
|
9.5B EUR |
3%
|
|
| US |
|
PriceSmart Inc
NASDAQ:PSMT
|
3.2B USD |
4%
|
|
| BR |
|
Grupo Mateus SA
BOVESPA:GMAT3
|
17.9B BRL |
7%
|
|
| BR |
|
Atacadao SA
BOVESPA:CRFB3
|
17.9B BRL |
4%
|
Costco Wholesale Corp
Glance View
Costco Wholesale Corp., a titan of the retail industry, emerged from humble beginnings to redefine how consumers experience value shopping. Founded in 1976 by James Sinegal and Jeffrey Brotman, Costco's journey began with a simple yet powerful ethos: to provide quality goods and services at the lowest possible prices. Unlike traditional retailers, Costco operates on a membership-only model, charging customers an annual fee for the privilege of accessing its wide range of products. This membership system generates a steady stream of revenue and fosters a sense of exclusivity among its shoppers, who are greeted with everything from electronics and groceries to luxury goods and vacation packages. The company's vast warehouses, designed for efficiency and cost savings, allow customers to purchase goods in bulk, further enhancing the value proposition. What truly sets Costco apart is its business model, which emphasizes high sales volume and rapid inventory turnover, allowing it to negotiate competitive prices with suppliers. A cornerstone of its success is the razor-thin markup strategy; Costco is known for capping markups on all goods, ensuring that customers find bargains they may not encounter elsewhere. The company's operations extend into ancillary businesses, including gas stations, food courts, and optical centers, each contributing marginally to profits but significantly to customer loyalty and foot traffic. By maintaining a streamlined selection of items—typically favoring high-quality, private-label brands—Costco achieves economies of scale that reinforce its cost leadership. Its dedication to employee satisfaction, with industry-leading wages and benefits, reflects a corporate philosophy that happy employees lead to happy customers, further driving its robust membership renewals and financial stability.
See Also
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Based on Costco Wholesale Corp's most recent financial statements, the company has Operating Margin of 3.7%.
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