Textbook Problem

Analyze and compare Costco, Wal-Mart, and Nordstrom

 The general merchandise retail industry has a number of segments represented by the following companies:

Company Name	Merchandise Concept
Costco Wholesale Corporation (COST)	Membership warehouse
Wal-Mart Stores, Inc. (WMT)	Discount general merchandise
Nordstrom, Inc. (JWN)	Fashion department store

For a recent war, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) for these three companies:

1. a. Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place.
2. b. Determine the number of days’ sales in inventory for all three companies. Use 365 days and round all calculations to one decimal place.
3. c. Interpret these results based on each company’s merchandising concept.