Financial Analysis Of Target Corp. (2012)

I have written a short evaluation of each ratio listed after each ratio explaining if the average of the ratios over the previous four years are relatively good or relatively bad. The first significant trend that I noticed was found within the inventory turnover ratio. I noticed that within the past four years the ratios have stayed fairly consistent. Casey’s inventory turnover ratio is fairly high which exhibits that they are not having trouble selling their products. In fact, they sell and replenish at a high rate.

Inventory Turnover Ratio Debt to Equity Ratio Current Ratio Net Profit

The Current Ratio is used to evaluate a company’s ability to satisfy its financial obligations. If the calculated result is less than 1.00, it implies a company cannot pay its obligations thereby risking the company’s financial health unless action is taken to correct the negative trend. In contrast, if the ratio result is greater than 1.00, it is usually interpreted positively and implying a greater likelihood of said company to handle assets and capital successfully. Calculating Whole Foods current ratio, a result of 1.47 (see Appendix B for calculations for all Current Ratios) implies the company is efficiently able to turn its SKU’s into cash within a favorable operating cycle. This is similar to Sprouts Farmers Market that resulted at 1.50 and Kroger with 7.63 giving these competitors a closer advantage (Sprouts Farmers Market,2016) than Walmart’s surprising ratio of .93 for 2016.

Target Corporation (Target) is a well-known food item and retail store within the United States it has held the title of being the second largest retail store. They distinguish themselves from its competitors by offering upscale, fashion-conscious products at affordable prices, Target Corporation is one of the largest retailers in the United States as well as the second-largest discount retailer in the country, trailing behind Wal-Mart Stores, Inc. Target operates more than 1,750 stores located in 49 states (all except Vermont) and the District of Columbia. Most of these are general merchandise stores using a layout averaging 126,000 square feet. About 250 of the units operate under the name Super Target and are combined discount/grocery stores,

Target Corporation is a worldwide retail store, this industry has affected multiple competitors closing them down due to economic difficulties. Target decided to make a change on their operation module to boost sales and help them stay afloat. In the 2016 Financial Statement, Target stated that their inventory method that is currently being used. This method is called: Retail Inventory Accounting Method known as (RIM), this method it is common amongst these types of corporations because of it practicality. Target also uses the LIFO method known as Last-In, Frist-Out, this helps them stay on top of their inventory.

Rivalry in this industry is very high due to the huge number of competitors and the slow growth of the industry. In the US, discount retailers must compete with each other, and other retailers such as supermarkets, wholesale clubs, online retailers, category specific retailers as well as drug stores. In addition, most of the products offered by these retailers are homogeneous and therefore the retailer are forced to compete on price. In the discount retail industry, the differentiation in products are minimal and therefore there is high rivalry among the competitors. Companies like Target must be innovative in order to come up with creative differentiation styles from their competitors.

A Target Corporation Analysis Target originally started in Minneapolis in 1962 and currently has 1,803 stores and over 340,000 employees (Corporate Fact Sheet, 2017). The company target market are consumers that shop for everyday items and also accommodate consumers who are looking to purchase item such as new electronics like TV’s and game consoles, and to the consumers who are shopping for new furniture for children like cribs and dressers. The prime market for Target are consumers at a median age of forty. Fifty-seven percent of their consumers are college graduates, have a house hold income of $64k, and forty-three percent being families with children (Corporate Fact Sheet, 2017). Target is able to offer competitive “style at discount

• Shows that the operating earnings are high compared to the debt. • Indicates a strong ability to generate cash from operations. Net Profit (margin) ratio has steadily increased from negative amounts in 2011 and 2012 to positive amounts in 2013 and 2014. • Company has avoided not being able to generate profit after all expenses have been

Target Corporation (TGT) is an international general merchandise and grocery retailer founded in Minneapolis, Minnesota that works to ensure that the customer is provided with the opportunity to purchase a wide variety of goods such as household products, electronics, pharmacy, personal care products, grocery goods, clothing apparel, and sporting goods in order to achieve customer satisfaction at a discounted price in order to remain competitive within the industry. The primary goal for Target is to overcome their various competitors within the industry in order to generate profit through continuous innovation and delivering outstanding value at each Target location in order to be the preferred shopping destination amongst the customer. In

Target Corporation stock is overvalued. Target is planning on raising it minimum wage, and cutting prices on many of their items and investing billions into upgrades. Target Corporation stock is impacted by two things related to what it sells, price and convenience. If a consumer needs something right away the availability of a Target store is most likely close by this will play a big factor by the consumer if that product is going to be purchase at Target.

Target Corporation is the second largest discount store retailer in the United States following Walmart. Target provides high-quality, trendy merchandise at logical prices. As of today, Target has more than 1800 retail stores and 38 distribution centers in the United States. The first official store was opened in 1962 in Roseville Minnesota and have thrived every since. I will be analyzing Target’s financial statements and communicating the results to our decision makers (Target 2017).

After an analysis of both Metro Inc., and Loblaws Companies Limited, we have come to the conclusion that Metro poses the better investment opportunity. Metro, Inc., is one of the leading retailers and distributors of food and pharmaceutical products in Quebec and Ontario. It currently pays a quarterly dividend of $0.1625 per share, equating to $0.65 per share on an annualized basis. Its dividend yield is only 1.26%, but Metro is consistent with its payout as it hasn’t fallen below 1.20% in the past five years. Although it’s yield is lower than Loblaws, Metro has raised its annual dividend payment for 22 consecutive years.

FINANCIAL STATEMENT REVIEW Financial Statement Review The Starbucks is the corporation selected for the financial statement review. The first Starbucks opened in 1971, back then, the company was just a single store in Seattle’s historic Pike Place Market. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders.

George Draper Dayton was born on March 6th, 1857. After spending several years in banking and real estate as well as exploring the Midwest markets and their growth, Dayton essentially decided to buy land in Minneapolis. He saw Minneapolis as the strongest place for opportunity of growth so he bought into a company called Goodfellow’s Dry Goods. The next year, Dayton took ownership and became the first President to the newly named company, Dayton Dry Goods. In 1911, Dayton Dry Goods Company was renamed to be The Dayton Company to better represent who they were becoming which was more of a department discount store (Target Corporation, 2017).

Top 10 Tech Companies with amazing customer support in 2018 The fact that the customers can build or end the fame is taken seriously by some of the tech companies, and that facet has ultimately brought them to the stage where they are appreciated by the customers by simply putting their customers first. There are a few tech companies who have consistently remained the favorites of their customers because of the service they have provided.