Target Financial Ratios

Finding information on Target Corp. has been very easy. They are a pretty transparent company when it comes to their financial data being open to the public. As we had all mentioned before, time constraints may be an issue but sticking to the plan has really help with this project. I have finished a big amount of the stuff needed for the project but I also need to make sure I can put all sections together and make sense of it. Target owns their corporate headquarters building located in Minneapolis, Minnesota and they also lease office space elsewhere in the United States. Target offer is customers, referred to as “guests,” everyday essential and fashionable, differentiated merchandise at discounted prices. Target offers its guests a preferred shopping experience through their devotion to innovation, loyalty offerings such as REDcard Rewards and Cartwheel, and their approach to investing in future growth. Target has had steady growth over the last decade. Revenues grew by $1.2 billion in 2016. Target had a net loss of $3.6 billion in 2015 because of the Canadian market being shut down but did bounce back nicely. They reported $3.3 billion in 2016. Also in 2016 Target’s operating cash flow increased by 32% due to net income reported by the company in 2016 and a drop in cash used in inventory. Some key ratios listed below:

(TGT)
1.) Liquidity of short-term assets Current ratio 0.94 Cash ratio 0.06 Quick ratio 0.29
2.) Long-term debt-paying ability Debt ratio 129.17% Debt-equity ratio 242% Times Interest Earned 3.95
3.) Profitability Net income/sales (profit margin) 3.94% Net income/assets (ROA) 7.31% Net income/shareholder equity (ROE) 24.99%
4.) Asset utilization/ management efficiency Total asset turnover 0.4 Inventory turnover measures 1.8840 Accounts receivable turnover 17.8318
5.) Market measures Price/earnings ratio 15.24 Earnings per common share