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Financial Analysis Of Target Corp. (2012)

437 Words2 Pages

Financial Analysis According to Richards (2016), the information provided on the company’s balance sheet can be utilized to calculate several financial ratios, which in turn demonstrate the company’s performance. In this case, the important ratios about Target Corp., are summarized in appendix A, which give more information about the valuation, profitability, efficiency, capital structure as well as liquidity of the corporation. According to the information in these tables, Target’s quick ratio is 0.44 in 2016, which implies that if the number declines over time or falls implies that the company is investing too much capital in inventory or it has too much short-term debt. On the other hand, the company’s current ratio is 1.12, which implies that the company’s short-term liabilities do not surpass its short-term possessions and an increase in appendix B shows a strength in the short-term liabilities. …show more content…

Secondly, the company’s payables turnover ratio shows that the company’s payable’s turnover decreased from 201-2015 but improved in 2016 more than the value recorded in 2014. Thirdly, company’s working capital turnover ratio improved from 2014 to 2015 and similarly in 2015-2016. Information in Appendix B indicates that the payables turnover ratios, which is the activity, calculated as the cost of products olds over the payables declined in 2014-2015. However, in 2015-2016 the payables turnover ratio increased more than the level recorded in

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