Working Capital Efficiency Analysis: Costco vs. Walmart

This report evaluates the working capital efficiency of Costco and Walmart through a comparative analysis of key operating metrics, including inventory turnover, receivables turnover, payables management, and the Cash Conversion Cycle (CCC).

The study examines how effectively each company manages short-term assets and liabilities to support day-to-day operations while maintaining liquidity. By analyzing financial statement data and working capital ratios, the report identifies differences in operational efficiency, cash flow management, and capital utilization between the two retail giants.

The analysis concludes that despite operating at a smaller scale, Costco demonstrates superior working capital efficiency through faster inventory movement, quicker cash conversion, and more effective utilization of operating capital. This project showcases practical application of financial statement analysis, ratio analysis, and corporate finance concepts commonly used in equity research and investment analysis.