In 2022, Costco's annual revenue was $227 billion, with a gross margin of 12%, a net margin of 2.5%, and a net profit of $5.8 billion, including $4.2 billion in membership fee income.

Balance Sheet:

Cash and equivalents totaled $11 billion, accounting for 17% of assets;

Inventory turnover was 12 times for the year, with inventory balance equivalent to one month's stock. Before goods are sold to customers, all are accounts payable owed to suppliers;

Borrowings accounted for only 10% of assets, indicating low debt repayment risk;

Gift cards and unexpired membership fees accounted for 6% of assets, remaining flat compared to 2021;

From 2020 to 2022, Costco's cumulative net profit was $14.8 billion, of which $8.4 billion was used for cash dividends and $1.1 billion for share repurchases.

In terms of the balance sheet, the asset/liability structure is stable. Apart from share repurchases, the company's earnings are mostly used for cash dividends. Even so, the company maintains ample cash reserves, demonstrating the excellence of Costco's financial statements.

On the income statement, the gross margin remained around 12%, while the net margin improved to 2.5%. Costco has managed to attract more members and increase membership fee income while maintaining ultra-low gross margins, thereby achieving an improvement in net margin, which speaks to the company's strength.