Costco Company is a wholesale company that operates an international chain of member warehouses, designed to help small and medium-sized businesses reduce purchasing costs 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 its profits and has gone from zero to almost three billion dollars in less than six years. The secret to its success lies in its strategy of selling products at low prices but in high volumes. This article analyzes Costco's annual reports for the year ended August 31, 2010 and provides reasons why an investor should make this company their choice.Summary of the CEO's letter to shareholdersIn this letter, top management is very optimistic as for 2010, after being disappointed by the last two years. Although 2010 was characterized by fragile economic conditions in most of their markets, the year produced a record in terms of sales and profits. This record sale results in Costco achieving a turnover of $7.63 billion in 2010, compared to $69.9 billion in 2009, a net profit of $1.3 billion and of an eighteen percent increase in earnings per share. Despite the uncertain economy in 2010, members shopping at Costco warehouses increased 4 percent, spending 3 percent more than in 2009. Most members shop at their fifty-six stores, which recorded more than two hundred million dollars in sales in 2010, two of which yielded more than three percent. hundred million dollars. In terms of expenses, the letter estimates Costco's costs at nearly $1 billion in capital expenditures. This large capital expenditure is justified by Costc...... middle of paper ...... seeking to make high profits at the expense of public welfare. This will therefore negatively affect profits and sales. Audit Report Costco's financial records have been audited by KPMG, which has also made recommendations for improvement in accordance with audit requirements. In my opinion, they presented an impeccable report following the required auditing standards and meeting the standards set by the Public Company Oversight Council. In conclusion, if I had the chance to invest in a business, I would choose Costco. With this company, I will have the assurance that my shares will produce good returns thanks to the increased sales and profits they are experiencing, offered by their large customer base both locally and internationally. Works Cited Hauch, Valérie. “Costco loses bid to expand Scarborough gas bar” The Star, June 7, 2011. 4-5. Print.