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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

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