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Financial Ratio Analysis Of Target Corporation

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Financial ratio analysis is used by both managers and investors to evaluate how well an organization is performing. Managers use these ratios to analyze both operating and financial performance through various components of the firm to determine its solvency (liquidity and leverage), efficiency (activity) and profitability (growth and profitability) (SLU, 2014). The ratios assist in identifying areas where improvements can be made as well as to identify trends (improving or deteriorating) and to make comparative valuations within the industry. Investors on the other hand, use these ratios by comparing various aspects between companies to determine if the firm is a good investment. Samplings of financial ratios (Appendix A) for Target Corporation are …show more content…

With a 4.69% growth last year, Target continues to earn their ranking of #36 on Forbes’ Fortune 500 List (Forbes, 2014). As revealed in the IFE, the two most important factors for Target to consider in order to be successful in the retail business are “free credit monitoring and identity theft protection with Experian's ProtectMyId program” and “Security breach Dec, 2013: unauthorized access to consumer debit and credit card data.” The cyber attack that targeted Target Corporation and their 1,776 stores took place in December, 2013 which inevitably resulted in extensive government inquiries and private and legal litigations. According to Riley, M., Elgin, B., Lawrence, D., & Matlack, C. (2014), this was the largest retail computer hack in all of U.S. history. Target has incurred over Over $122 million in expenses and the damage is far from over (Target Corporation, n.d.). Target is; however, responding appropriately with offering free credit monitoring through a partnership that they developed with Experian in hopes to regain consumer trust and confidence (Target Corporation,

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