ipl-logo

Financial Analysis Of Target Corporation 2013-2014

663 Words3 Pages

The analysis will focus on Target Corporation (TGT) profitability, liquidity and long-term solvency from 2013 through 2014. This analysis will then be compared with their competitors, performance of the company, and whether or not to invest in the company. Target (TGT) profitability is usually considered the first step in a financial breakdown with the investors. According to U.S. Securities and exchange Commission (2014) Target showed an increase in profitability on the 2014 annual report. In 2014, Target sales reached $72,618 million and $71,279 in 2013. This showed Target had an increase in profitability of $1,339 million at a gross profit rate of 1.9% over the prior year. In addition the SEC (2014) showed Target perform better than the sector and its competitor Walmart (WMT). Target gross profit (29.67) and net profit (3.69) beats Walmart 24.85 and 3.37 and sector 24.16 and 10.35. However, Walmart show better perform in asset (2.14) and inventory turnover (7.96) in 2014 then Target at 1.72 and 5.99. (www.sec.gov) According to SEC (2014) Target GAAP earning per share were $2.58, with dilution of $6.44 because of the discontinued operations which adjusted earnings from continuing were $4.27. Target gross margin also showed a slight increase, in 2014 $21,340 and 2013 $21,240. In addition, the gross margin in …show more content…

With Target debt to asset ratio shows higher than Walmart this show that Target sell their product at a higher price to their customer versus their competitors Walmart. Target asset show .90 compared to Walmart .80 in every dollar and the debt to asset ratio is higher because of their lower equity “buffer” to creditors if the corporation becomes insolvent (www.sec.gov). Target profit margin of 4.48% indicates the company success and Walmart 3.60% show their focus strategy is discount prices and Target chose product and customer satisfaction

Show More
Related
1050 Words | 5 Pages

Annual Reports and Press releases The annual reports and press releases of both companies slightly differ though with a portion of similarity. Although, Home Depot’s annual report is composed at the headquarters of giving an inclusive report on all of the retail stores in the world, through the company’s website these reports posted can be found. Therefore, this being impartial and all-inclusive to an extent of analysis it would have to be done on the contrasts, similarities, profitability, and performance of different retail stores in different regions or countries. However, the shareholders and customers analyze the summary provided to know the general performance.

Read More
519 Words | 3 Pages

Below is the project balance sheet for Target Corporation in 2016 (in millions). Target 2016 Assets Current Assets Cash 2,512 Net Receivables 749 Inventories 8,309 Other Current Assets 144 Total Current Assets

Read More
552 Words | 3 Pages

Their revenues decreased rapidly in the following year and they have just began to see an increase in their profits since the data breach. This shows that the brand’s perception fell by the wayside and many people shopped elsewhere. With the cut in profits, they had to lay off a lot of employees because they did not have enough funds to pay all of their employers. Therefore, Target had less personnel due to the data breach. The company did spend a lot of money, however on trying to get their systems back up and running and they tried to get the best security upgrade possible.

Read More
866 Words | 4 Pages

During the initial years, the Target store lost money and had reported more liabilities and debt than revenue, but then reported it’s first gain in 1965 when sales reached almost $39 million. By then, they had opened up a fifth store in Minneapolis (Nolen 2014). By analyzing the equity

Read More
1627 Words | 7 Pages

Research paper TD Bank TD Bank business relationship initially was through Portland Savings Bank in Maine during 1852 which transition into multiple merges and became People Heritage Bank in 1983. The company saw a pathway for growth as Peoples Heritage Bank and as the expansion circulated into England the name changed to Banknorth. In 2004, Banknorth latched on to TD Bank Group of Toronto, Canada based on its top 10 financial service company in North America (TD bank, 2016). TD Bank Group excelled and was Banknorth’s top shareholder, and other businesses then were known to be TD Bank north. TD Group then bought TD Banknorth in 2007 and looked to increase its territory in the U.S.

Read More
557 Words | 3 Pages

In the last quarter, Lululemon’s sales have increased to 6 percent but along with it come to the expense of the company’s profit margin. The company's gross margin has dropped from 50.5 percent a year ago to 46.8 percent today. However, in the current quarter, the company is not looking for improvement in profit margin, it focusing more towards the sales growth. Looking at the full year, Lululemon is expecting to earn $1.87 to $1.92 a share on sales of $2.023 billion to $2.055 billion. While earlier, analysts were expecting $1.86 to $1.91 a share on sales of $1.97 billion to $2.02 billion (Lisa Beilfuss).

Read More
1175 Words | 5 Pages

Due to new technology and online purchasing, the way in which Target does business has changed dramatically. Consumers have changed their preferences on buying. Sitting on our couch and buying online while we watch our favorite T.V. show, is easier and cheaper than having

Read More
956 Words | 4 Pages

I. Strengths of TARGET Corporation Target Corporation is one of the largest and oldest public discount retailing company operate in the United States. The company founded in 1902’s by George Dayton (as also known as Dayton Dry Goods in 1962’s). Target store has a huge store footprint and enjoys considerable brand recognition. Target’s portfolio of owned and exclusive brands is also its strength, which allow retailer to a valuable differentiating lover in high competitive retail environment.

Read More
1172 Words | 5 Pages

Target has over 1,700 locations as of 2016 and it has 341,000 employees. This retail company offers clothing and accessories, beauty and health products, electronic, furniture, food, gardening and pet supplies, toys, appliances, and more. TASK 1A (P1.1) Target Corporation is a public company. This type of organization means that Target has the permission to sell its registered securities

Read More
311 Words | 2 Pages

Target also has an online website and a mobile app for consumers to use to shop. Even with these strengths, Target could benefit from finding a country to succeed in. Target takes on many corporate responsibilities, such as education and health. Because Target can be classified as a department store, a grocery store, and a discount store, they have many competitors ranging from Walmart to Sears to Dollar Tree. Target sells a vast

Read More
355 Words | 2 Pages

Two concepts you discussed that this reply will expound upon further are, inventory turnover and maintaining top talent. From the example of Target alone we can see that it is not feasible to look at one metric or ratio alone. One must asses several metrics in order to get a clear picture of the financial stability of a given organization. According to Hançerlioğulları, Şen,& Aktunç (2016), “managing inventories is at the core of operational performance in many industries” (p. 681).

Read More
843 Words | 4 Pages

Target Corporation is one of the famous retail stores in the United States which is founded by George Dayton in 1902. Walmart is the main competitor to Target because these companies have similarities such as goods, services, business form, and customers. To compare Target to Walmart is logical because people can determine and analyze advantages and disadvantages in annual financial statement between Target and Walmart. Target and Walmart have different data on investment activities which are important to their companies. Investment activities are, uses necessary resources for operating of their companies which include computers, delivery trucks, furniture, buildings.

Read More
976 Words | 4 Pages

SUPPLY CHIAN NETWORK OF TARGET VALUE CHIAN ANALYSIS OF TARGET Value chain analysis is a set of inter - linked value creating activities performed by the organisation that begin with inputs, go through processing and continue up to outputs manufactured to customers. It is the set of activities that creates additional value for the customer. Value chain plays a central role in improving cost efficiency, quality and customer responsiveness. Each activity in the value chain adds to the value of product in each process from its creation to delivery.

Read More
2091 Words | 9 Pages

Since Target Corporation is accessible in different places around the world, changes in rules and regulations of different countries it operates might impact on Target’s performance. It may also cause additional costs and expenses. this is associated especially to health, security and business laws. On social environment, Target annually do volunteering. They have a Target Books for School Award which allows them to give away $500 worth of books to local

Read More
774 Words | 4 Pages

2. Customers: As the recession hit, unemployment rose and people started becoming more responsible with money, the consumer priority changed. Since Target was known for style, fashionable in slightly higher price, in the end, they hurt themselves. Target should have done a lot better of a job in providing customer

Read More

More about Financial Analysis Of Target Corporation 2013-2014

Related Topics

Open Document