Target corporation financial statements 2014

TARGET CORPORATION

Research Paper:
Introduce your company to your audience. Share company history, values, goals, product lines, industry challenges, and any other interesting facts you find. Share what industry or industries your company operates in. Who are their major competitors?
Analyze the horizontal and vertical analysis you completed in the workbook. Choose three items from each analysis that you feel are important to highlight, positive or negative. Share what these items mean in terms of the company’s performance and your recommendation to invest or not to invest based on these figures. Remember to support your recommendation with the figures calculated in your analysis.
Analyze the ratio analysis you completed in the workbook. Address each area of ratio analysis: liquidity, solvency, asset management, profitability, and market analysis. Interpret these ratios, and explain what they mean for your company, supporting your explanation with your calculations.
Locate or calculate at least 5 key ratios from your company’s main competitors. Compare your company to the competition and explain which company is performing better. Support your explanation with your calculations or research of the competition.
Advise your audience as to whether to invest in the company you chose, with a summary of why you advise this, which your work above should be supporting.
Remember to use proper APA formatting for your research paper, including a cover page, in-text citations, and a reference page. Your finished research paper should be 4-6 pages long.

Vertical_Horizonal Analysis
Table I
Target Vertical Analysis year 1 Vertical Analysis Year 2 Horizontal Analysis
Income Statement (in thousands) 2014 2013 2012 2013 2014
Net Revenue (net sales) 72,596,000 73,301,000 69,865,000 100.00% 100.00% -0.009617877
Cost of Goods 51,160,000 50,568,000 47,860,000 0.6898678054 0.7047220233 0.0117070084
Gross Profit 21,436,000 22,733,000 22,005,000 0.3101321946 0.2952779767 -0.0570536225
Total Operating Expenses 17,207,000 17,362,000 16,683,000 0.2368589787 0.2370240785 -0.0089275429
Earnings from Operations 4,229,000 5,371,000 5,322,000 0.0732732159 0.0582538983 -0.2126233476
Interest Expense 1,126,000 762,000 866,000 0.0103954926 0.0155104964 0.4776902887
Net Earnings 1,971,000 2,999,000 2,929,000 0.0409134937 0.0271502562 -0.342780927
Balance Sheet (in thousands)
Cash/cash equivalents (cash) 695,000 784,000 794,000 0.0162780558 0.0155993985 0.8864795918
Short term investments - 0 - 0 - 0 0 0 0
Net Accounts Receivable - 0 5,841,000 5,927,000 0.121275668 0 0
Inventory 8,766,000 7,903,000 7,918,000 0.1640886157 0.1967544273 1.109199038
Current Assets 11,573,000 16,388,000 16,449,000 0.3402611964 0.259758041 0.7061874542
Net Fixed Assets 31,378,000 30,653,000 29,149,000 0.6364429126 0.7042847844 1.023651845
Total Assets 44,553,000 48,163,000 46,630,000 100.00% 100.00% 0.9250461973
Current Liabilities 12,777,000 14,031,000 14,287,000 0.2913232149 0.2867820349 0.91062647
Long Term Liabilities 15,545,000 17,574,000 16,522,000 0.3648859083 0.3489102866 0.8845453511
Total liabilities 28,322,000 31,605,000 30,809,000 0.6562091232 0.6356923215 0.896124031
Stockholders Equity 16,231,000 16,558,000 15,821,000 0.3437908768 0.3643076785 0.9802512381
Total liabilities + Stockholders Equity 44,553,000 48,163,000 46,630,000 100.00% 100.00% 0.9250461973
68.61%
Prepared by Holly Beimert
Select numbers taken from financial statements
Mergent Online
Financial Ratios
Table II 2013 2014 Wal-Mart
Company Company* Company* Competition or Industry Ratio**
Formula Year 1 Year 2 2014
Liquidity Ratios 1. Complete the formula column. See example for gross profit percent.
Current Ratio Current Assets / Current Liabilities 1.167985176 0.91 0.88 2. Use the numbers on the previous page to complete the ratios-Use Excel formulas.
Acid Test Ratio (Cash + Short Term Investments + A/R) / Current Liabilities 0.4721687692 0.0543946153 0.2 3. One * means you did the calculations
Two ** means you got the information from another source (cite that source)
Asset Management Ratio 4. For column E choose a competitor or the Industry.
Inventory Turnover Cost of Goods Sold / Average Inventory 6.392516276 6.138340632 8.08 You do not need to calculate the competitor ratios, you can use pre-calculated ratios
just remember to cite your source. (like a database)
Solvency Ratios
Debt ratio Total Liabilities / Total Assets 0.6562091232 0.6356923215 0.6275720265
Times Interest Earned Ratio Income Before Taxes and Interest / Interest Charged 7.05 3.76 7.49
Profitability Ratios
Gross Profit Percent Gross profit/net revenue 0.3101321946 0.2952779767 0.2482185372
Return on Net Sales Net income/net sales (revenue) 0.0409134937 0.0271502562 0.0336388869
EPS** 3.07 4.88
Market Analysis
Price Earning Ratio** 31.7 17.59
Dividend Yield** 2.52 2.24
*Calculated by Author
**Information from Target Corporation and Wal-Mart financial statements and annual reports obtained from Mergent Online. Information also obtained from NASDQ online
http://www.nasdaq.com/symbol/tgt/
Prepared by: Holly Beimerthttp://www.nasdaq.com/symbol/tgt/