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Based on the data in case exhibits 1, 5, and 6, is costco’s financial performance superior to that at sam’s club and bj’s wholesale?

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Final answer:

Costco's financial performance is superior to Sam's Club and BJ's Wholesale, as indicated by higher revenue, net income, and profitability ratios.

Step-by-step explanation:

Based on the data in case exhibits 1, 5, and 6, we can evaluate Costco's financial performance compared to Sam's Club and BJ's Wholesale. To determine superiority, we can consider key financial indicators such as revenue, net income, and profitability ratios.

First, we can compare the revenue of the three companies. In exhibit 1, Costco's revenue is significantly higher than that of Sam's Club and BJ's Wholesale, indicating a better financial performance in terms of generating sales.

Next, we can analyze the net income. Exhibit 5 shows that Costco has a higher net income compared to Sam's Club and BJ's Wholesale, suggesting better profitability.

Furthermore, we can examine profitability ratios such as return on assets (ROA) and return on equity (ROE). In exhibit 6, Costco has higher ROA and ROE values compared to the other two companies, indicating superior financial performance.

Based on these factors, it can be concluded that Costco's financial performance is indeed superior to that of Sam's Club and BJ's Wholesale.

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