As we look at Exhibit A, The Summary Statement of Target, something that really stands out is the Net income at the end of 2014. Target had recently gotten themselves completely out of the Canadian market and with the closing of all 133 stores lost money along the way. Target did bounce back very nicely though. The pro forma numbers were found back taken the average of the two previous years. Target seems to have a steady stream of profit, total assets, and total liabilities and stockholders’ equity in the coming years. After looking at the pro forma numbers, the biggest thing that stuck out was that there wasn’t anything too out of the ordinary. Going into 2017 revenue and liabilities should be on the rise and then into 2018 they should decrease …show more content…
Over the 5 years looked at they had a range of 66%-70% in liabilities and 29%-33% in stockholders’ equity. There gross profit never got above 30% in the 5 years and there total net income available to common stockholders was right around 4%, except for the year in which they closed all of their Canadian stores. There weren’t too many surprises in Target’s percentage change statement, again, except the year they close the Canadian stores. Cash went up 83%, while Net income shot up the year after they had to pay for all those stores. Looking at both statements, Target’s future look bright with slight percentage increases in almost every category. Target does have a very big cost of revenue and it would be wise to find a way to lower that in the future. Target’s net income does have an 11.44% increase in the next year. This is a good news for both Target and its shareholders. Target does keep their inventories low at right around 20%. They could also find a way to be more liquid in the coming years, as their percentage of cash is around 8 percent. Again looking at the common analysis statement and the percentage change analysis, Target looks to have pretty consistent years coming up, but they could find a while to lower costs and boost their liquidity and