Vertical And Horizontal Balance Sheet For Target

Dick’s Sporting Goods Manami Maehama Professor Martin

Horizontal & Vertical Analysis Balance Sheet

Cash & Short Term Investments Cash and Short Term investments is the sum of two balance sheet line items: cash and equivalents and short term investments in marketable securities.

3 ways to improve:

1. Lease, Don’t Buy. 2. Offer Discounts on Loans 3. Conduct Customer Credit Checks

Assets Horizontal

2016 2017 2018 2019 2020 2021

119M (39%) 165M (-39%) 101M (13%) 114M (-39%) 70M (-6.5%) 69M

Total Accounts Receivable Total Accounts receivable is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

3 ways to improve :

1. Move fast on past-due receivables. 2. Consider offering an early payment discount 3. Consider offering a payment plan

ASSET Horizontal

2016 2017 2018 2019 2020 2021

67M (16%) 78M (-17%) 65M (-32%) 44M (34%) 59M (0.25%) 59M

Inventories Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale.

3 ways to improve :

1. Avoid dead stock. 2. Save on storage costs 3. Regular auditing

ASSET Horizontal

2016 2017 2018 2019 2020 2021

2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B

Total Current Assets Total current assets represent all the assets of a company that are expected to be conveniently sold, consumed, utilized or exhausted through the standard business operations, which can lead to their conversion to a cash value over the next one year period.

3 ways to improve :

1. Pay off Current Liabilities. 2. Sell-off Unproductive Assets. 3. Improve Current Asset by Rising Shareholders Funds

ASSET Horizontal

2016 2017 2018 2019 2020 2021

2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B (0%) 2B

Net Property, Plant & Equipment Net Property, Plant, and Equipment is the value of all buildings, land, furniture, and other physical capital that a business has purchased to run its business.

3 ways to improve :

1. Ins and outs of depreciation 2. Use an accelerated method that takes most most of the depreciation up front 3. Subtract depreciation over time

ASSET Horizontal

2016 2017 2018 2019 2020 2021

1B (100%) 2B (0%) 2B (0%) 2B (100%) 4B (50%) 5B

Intangible Assets An intangible asset is an asset that is not physical in nature.

3 ways to improve:

1. Identify Your Intangible Asset 2. Standardize Systems and Processes 3. Develop Your Intangibles

ASSET Horizontal

2016 2017 2018 2019 2020 2021

310M (24%) 385M (0.5%) 387M (-2%) 380M (-10%) 340M (3%) 340M

Net Goodwill Goodwill is an intangible asset that is associated with the purchase of one company by another.

3 ways to improve:

1. Cash-Flow Statement Basics 2. Investing Cash Flow 3. Financing Cash Flow

ASSET Horizontal

2016 2017 2018 2019 2020 2021

200M (23%) 245M (2%) 250M (0%) 250M (-2%) 245M (6%) 245M

Other Assets Other assets are a grouping of accounts that are listed as a separate line item in the assets section of the balance sheet.

3 ways to improve:

1. Find new sources of income 2. Get out of debt 3. Spend less

ASSET Horizontal

2016 2017 2018 2019 2020 2021

83M (30%) 108M (11%) 120M (-12%) 106M (26%) 134M (14%) 152M

Tangible Other Assets Tangible assets include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory.

3 ways to improve:

1. A high net tangible assets value can serve as a cushion against uncertainty that can take place in the market and help to support a company’s stock price.

2. Determining this value helps to find out if the market share price of a company is overvalued or undervalued.

3. As tangible current assets can easily be converted into cash, they provide liquidity to the business and, thus, reduce risk

ASSET Horizontal

2016 2017 2018 2019 2020 2021

83M (30%) 108M (11%) 120M (-12%) 106M (26%) 134M (14%) 152M

Total Assets Total assets refers to the total amount of assets owned by a person or entity.

3 ways to improve:

1. Reduce asset base 2. Improve Productivity And Lower Costs 3. Increase Sales Revenue

ASSET Horizontal

2016 2017 2018 2019 2020 2021

4B (0%) 4B(0%) 4B(0%) 4B(75%) 7B(19%) 8B

Total Accounts Receivable & Inventories ASSET Vertical

2016 2017 2018 2019 2020 2021

67M (2%) 78M (2%) 65M (2%) 44M (1%) 59M (1%) 2%

Total Assets

2016 2017 2018 2019 2020

4B 4B 4B 4B 7B

2016 2017 2018 2019 2020 2021

2B (50%) 2B (50%) 2B (50%) 2B (50%) 2B (29%) 49%

Total Accounts Receivable

Inventories

Cash & short term investments & Total current assets ASSET Vertical

2016 2017 2018 2019 2020 2021

119M (3%) 165M (4%)

101M (3%)

114M (3%)

70M (1%) (3%)

Total Assets

2016 2017 2018 2019 2020

4B 4B 4B 4B 7B

2016 2017 2018 2019 2020 2021

2B (50%) 2B (50%) 2B (50%) 2B (50%) 2B (29%) (49%)

Cash & short term investments

Total current assets

Net Property, Plant & Equipment & Intangible Assets ASSET Vertical

2016 2017 2018 2019 2020 2021

1B (25%) 2B (50%) 2B (50%) 2B (50%) 4B (57%) (46%)

Total Assets

2016 2017 2018 2019 2020

4B 4B 4B 4B 7B

2016 2017 2018 2019 2020 2021

310M (8%) 385M (10%)

387M (10%)

380M (10%)

340M (5%) (9%)

Net Property, Plant & Equipment

Intangible Assets

Net Goodwill & Other Assets ASSET Vertical

2016 2017 2018 2019 2020 2021

200M (5%) 245M (6%)

250M (6%)

250M (6%)

245M (4%) 5%

Total Assets

2016 2017 2018 2019 2020

4B 4B 4B 4B 7B

2016 2017 2018 2019 2020 2021

83M (2%) 108M (3%) 120M (3%) 106M (3%) 134M (2%) 3%

Net Goodwill

Other Assets

Tangible Other Assets ASSET Vertical

2016 2017 2018 2019 2020 2021

83M (2%) 108M (3%)

120M (3%)

106M (3%)

134M (2%) 3%

Total Assets

2016 2017 2018 2019 2020

4B 4B 4B 4B 7B

Tangible Other Assets

ST Debt & Current Portion LT Debt The current portion of long-term debt is the amount of principal that will be due within one year of the date of the balance sheet. This amount is reported on the balance sheet as one of the company's current liabilities.

3 ways to improve:

1. A company can keep its long-term debt from ever being classified as a current liability by periodically rolling forward the debt into instruments with longer maturity dates and balloon payments. 2. Pay debts back on time 3. Stop creating more debt

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

589,000 (10%)

646,000 (67%)

5M (0%) 5M (83%) 423M (40%) 592M

Accounts Payable Money owed by a company to its creditors.

3 ways to improve:

1. Go paperless when possible 2. Look for discounts 3. Standardize your accounts payable workflow process

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

678M (12%) 756M (12%) 843M (6%) 890M (12%) 1B (11%) 110M

Income Tax Payable Income tax payable is a type of account in the current liabilities section of a company's balance sheet. It is compiled of taxes due to the government within one year.

3 ways to improve:

1. Open an interest-bearing bank account 2. Skip some of the credits for which you are eligible 3. Accelerate advanced payments in the current year instead of delaying

payment until the next tax year.

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

68M (26%) 86M (-60%) 34M (15%) 39M (-74%) 10M (-93%) 700,000

Other Current Liabilities Other Current Liabilities are categories of short-term debt that are lumped together on the balance sheet.

3 ways to improve: to reduce

1. Sell unnecessary assets 2. Factor invoices 3. Use investments or cash to pay off loans

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

445M (25%) 555M (-2%) 543M (5%) 570M (13%) 641M (10%) 705M

Miscellaneous Current Liabilities Miscellaneous Current Liabilities is an account for current liabilities that do not fall into any of the categories already defined.

3 ways to improve: to reduce

1. Reduce costs 2. Increase income 3. Restructure liabilities

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

350M (19%) 418M (-0.2%)

417M (-3%) 405M (58%) 641M (18%) 756M

Total Current Liabilities Total Current Liabilities are the claims to the company's assets that are due within one year or the cycle of operations.

3 ways to improve:

1. Restructure assets 2. Raise more capital 3. Exit the business

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

1B (0%) 1B (0%) 1B (100%) 2B (0%) 2B (25%) 2.5B

Long Term Debt Long Term Debt is any amount of outstanding debt a company holds that has a maturity of 12 months or longer.

3 ways to improve: to reduce

1. Increase profitable sales 2. Sell assets and lease them back 3. Bring in an investor

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

5M(0%) 5M (1100%) 60M (-8%) 55M (5355%)

3B (1612%) 51B

Deferred Taxes-Debit Corporate bookkeepers debit an asset account to increase its value and credit the account to reduce its worth.

3 ways to improve:

1. Try to stop losses from operations 2. Pay the taxes 3. Use the straight line method

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

6M(667%) 46M (-67%) 14M (-7%) 13M (8%) 14M (150%) 35M

Other Liabilities Other Liabilities are all miscellaneous obligations that a company lumps together on financial statements.

3 ways to improve:

1. Sell unnecessary assets 2. Convert necessary assets into liabilities 3. Factor invoices

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

175M (11%) 195M (9%) 213M (-5%) 203M(-34%) 134M (-5%) 127M

Total Liabilities Total liabilities are the aggregate debt and financial obligations owed by a business to individuals and organizations at any specific period of time.

3 ways to improve:

1. Rework your business budget 2. Reduce business expenses 3. Increase customer sales

Liabilities Horizontal

2016 2017 2018 2019 2020 2021

2B (0%) 2B (-0%) 2B(0%) 2B(150%) 5B(38%) 7B

ST Debt & Current Portion LT Debt & Accounts Payable Liabilities Vertical

2016 2017 2018 2019 2020 2021

589,000 (0.1%)

646,000 (0.1%)

5M (0.3%) 5M (0.3%) 423M (8%) 2%

Total Liabilities

2016 2017 2018 2019 2020

2B 2B 2B 2B 5B

2016 2017 2018 2019 2020 2021

678M (34%) 756M (38%) 843M (42%) 890M (45%) 1B (20%) 36%

ST Debt & Current Portion LT Debt

Accounts Payable

Income Tax Payable & Other Current Liabilities Liabilities Vertical

2016 2017 2018 2019 2020 2021

68M (3%) 86M (4%) 34M (2%) 39M (2%) 10M (0.2%) 2%

Total Liabilities

2016 2017 2018 2019 2020

2B 2B 2B 2B 5B

2016 2017 2018 2019 2020 2021

445M (22%) 555M (28%) 543M (27%) 570M (29%) 641M (13%) 24%

Income Tax Payable

Other current liabilities

Miscellaneous Current Liabilities & Total Current Liabilities Liabilities Vertical

2016 2017 2018 2019 2020 2021

350M (18%) 418M (21%) 417M (21%) 405M (20%) 641M (13%) 19%

Total Liabilities

2016 2017 2018 2019 2020

2B 2B 2B 2B 5B

2016 2017 2018 2019 2020 2021

1B (50%) 1B (50%) 1B (50%) 2B (100%) 2B (40%) 58%

Miscellaneous Current Liablilities

Total Current Liabilities

Long Term Debt & Deferred Taxes-Debit Liabilities Vertical

2016 2017 2018 2019 2020 2021

5M(0.3%) 5M (0.3%) 60M (3%) 55M (3%) 3B (60%) 13%

Total Liabilities

2016 2017 2018 2019 2020

2B 2B 2B 2B 5B

2016 2017 2018 2019 2020 2021

6M(0.3%) 46M (2%) 14M (0.7%) 13M (0.7%) 14M (0.3%) 0.8%

Long Term Debt

Deferred Taxes-Debit

Other Liabilities Liabilities Vertical

2016 2017 2018 2019 2020 2021

175M (9%) 195M (10%) 213M (11%) 203M(10%) 134M (3%) 9%

Total Liabilities

2016 2017 2018 2019 2020

2B 2B 2B 2B 5B

Other Liabilities