Costco Company is a wholesale company that operates an international chain of membership warehouses, designed to help small and medium-sized businesses reduce the costs of purchasing for resale. In addition to reducing costs, these warehouses feature one of the largest selections of exclusive product categories under one roof. Costco is known for profit and has grown from zero to almost more than three billion dollars in less than six years. The secret of its success is the strategy of selling products at low prices but in high volumes. This document analyzes Costco's annual reports for the year ended August 31, 2010 and explains the reasons why an investor should make this company his choice. Summary of the CEO's Letter to Shareholders In this letter, senior officials are very optimistic about the year 2010, having been disappointed by the last two years. Although 2010 was characterized by fragile economic conditions in most markets, the year produced record sales and earnings. This record sales is evidenced by Costco achieving $7.63 billion in sales in 2010 compared to $69.9 billion in sales in 2009, a net profit of $1.3 billion, and an increase of 18 % in earnings per share. Despite uncertainty in the economy in 2010, members shopping at Costco stores increased 4 percent, spending 3 percent more than in 2009. Most members shop at their fifty-six stores, which in 2010 had recorded sales of over two hundred million dollars, two of which donated more than three hundred million dollars. In terms of expenses, the letter estimates that Costco's costs amount to nearly $1 billion in capital expenditures. This large capital expenditure is justified in Costc... mid-paper... trying to achieve high profits at the expense of public welfare. This will consequently have a negative impact on profits and sales. Audit Report The financial records of the Costco company were audited by KPMG, which also provided recommendations for improvements in compliance with the audit requirements. In my opinion they submitted a clean report following the required auditing standards and meeting the standards established by the Public Company Oversight Board. Bottom line, if I had the chance to invest in any company, I would choose Costco. With this company I will be sure that my shares will produce good returns thanks to the increase in sales and profits they are experiencing, offered by their large customer base both locally and internationally. Works Cited Hauch, Valerie. “Costco loses bid to expand Scarborough gas bar” The Star June 07, 2011. 4-5. Press.