Costco Revenues And Revenue Growth From 2012 To 2016

Revenue growth is the most commonly analyzed financial metric. Revenue Growth is the percent increase (or decrease) of a company’s revenue between two time periods. It is computed by using the following formula: ((revenues during the time period two – revenues during the time period one) / revenues during the time period one)*100. If the time periods are two consecutive years, then the revenue growth is referred to as the annual revenue growth year-over-year. If the time periods are two consecutive quarters, then the revenue growth is referred to as the quarterly revenue growth quarter-over-quarter. If the time periods refer to the same quarter in the two consecutive years, then the revenue growth is referred to as quarterly revenue growth year-over-year. In case the time periods are two non-consecutive years, then the revenue CAGR (Commutative Annual Growth Rate) is computed.

Revenue growth analysis is important for a number of reasons. First, it helps in understanding how a business is performing. If the revenue growth rates are positive, it means the business is performing well and the revenues are increasing. If the revenue growth rates are negative, it means the revenues are declining and the company needs to take measures to increase them. If they don’t, the company will continue to shrink. Second, a company’s historical revenue growth analysis along with the market size and market share analysis helps in forecasting the future revenues of a company. Third, a comparison of a company’s growth rates with its competitors helps in determining who is winning more business. A revenue growth higher than the industry average translates into increasing market share. Companies with very high revenue growth rates have the potential to be the industry disrupters.

COSTCO RANKING

With $118.7 billion revenues, Costco ranked number 16 in the R&P; Research list of top-3000 public companies in the US by revenues during 2016. Each one of the top-3000 companies generated more than $50 million of annual revenues during 2016.

The top-20 companies in the US by revenues during 2016 were:

1. Walmart ($482.1 billion)
2. ExxonMobil ($226.1 billion)
3. Berkshire Hathaway ($223.6 billion)
4. Apple ($215.6 billion)
5. McKesson ($190.9 billion)
6. UnitedHealth Group ($184.8 billion)
7. CVS Health ($177.5 billion)
8. General Motors ($166.4 billion)
9. AT&T; ($163.8 billion)
10. Ford Motor ($151.8 billion)
11. AmerisourceBergen ($146.8 billion)
12. Amazon ($136 billion)
13. Verizon ($126 billion)
14. General Electric ($123.7 billion)
15. Cardinal Health ($121.5 billion)
16. Costco ($118.7 billion)
17. Walgreens Boots Alliance ($117.4 billion)
18. Chevron ($114.5 billion)
19. Kroger ($109.8 billion)
20. Express Scripts Holding ($100.3 billion)

For the purpose of performance benchmarking of a company with a sector or industry average, R&P; Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For example, Life Sciences sector is comprised of following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments.

Costco is associated with Retail Sector and Broadline Retail Industry.

With $118.7 billion revenues, Costco ranked number 2 of all the companies in the US Retail sector. There were a total of 163 public companies in the US Retail sector that had revenues greater than $50 million during 2016.

The top-10 companies in the US Retail sector by revenues during 2016 were:

1. Walmart ($482.1 billion)
2. Costco ($118.7 billion)
3. Kroger ($109.8 billion)
4. Home Depot ($88.5 billion)
5. Target ($73.8 billion)
6. Lowe’s ($59.1 billion)
7. Best Buy ($39.5 billion)
8. TJX Companies ($30.9 billion)
9. Macy’s ($27.1 billion)
10. Sears Holdings ($25.1 billion)

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

• Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
• Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries.
• Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
• Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
• Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
• Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

With $118.7 billion revenues, Costco ranked number 2 of all the companies in the US Broadline Retail industry. There were a total of 21 public companies in the US Broadline Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Broadline Retail industry by revenues during 2016 were:

1. Walmart ($482.1 billion)
2. Costco ($118.7 billion)
3. Target ($73.8 billion)
4. Macy’s ($27.1 billion)
5. Sears Holdings ($25.1 billion)
6. Dollar General ($20.4 billion)
7. Kohl’s ($19.2 billion)
8. Dollar Tree ($15.5 billion)
9. J. C. Penney ($12.6 billion)
10. Dillard’s ($6.8 billion)