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No. of Recommendations: 5
Costco is not designed to be a company that generates, nor competes in an industry with, high margins. Where Costco is a rulemaker is in how efficently the company is run. For example, I believe that the company turns inventory over greater than 12 times a high which means that often Costco has sold the inventory before it has even paid the manufacturer for it yet. Rulemaker companies and investing in general is more than simply hunting for the biggest margins.

yofluke


Fiscal Year-End 08/31/2002
Gross Margin (TTM) % 12.23
Operating Margin (TTM) % 2.84
Profit Margin (TTM) % 1.71

Someone PLEASE tell me ....how can company with these margins be a Rule Maker?
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