report
shylesh1990
GroupProject2.docx
TARGET CORPORATION 2
1) computed the following ratios for two years
|
1) |
The debt ratio can be calculated as follows |
||
|
|
|
2020 |
2019 |
|
|
Total Liabilities |
$30,946 |
$29,993 |
|
|
Total Assets |
$42,779 |
$41,290 |
|
|
Total Debt ratio |
72.34% |
72.64% |
|
2) |
Gross Profit margin |
||
|
|
|
2020 |
2019 |
|
|
Gross Profit margin |
$23,248 |
$22,057 |
|
|
Total Sales |
$78,112 |
$75,356 |
|
|
Gross Profit margin |
29.76% |
29.27% |
|
3) |
Free Cash Flow |
||
|
|
|
2020 |
2019 |
|
|
Cash Flow from operations |
$7,117 |
$5,973 |
|
|
Capital Expenditure |
$2,944 |
$3,416 |
|
|
Free Cash Flow |
$4,173 |
$2,557 |
|
4) |
Time Interest Earned ratio |
||
|
|
|
2020 |
2019 |
|
|
EBIT |
$4,658 |
$4,110 |
|
|
Interest Expense |
$468 |
$434 |
|
|
Time Interest Earned Ratio |
9.95299145 |
9.47004608 |
|
5) |
Receivables Turnover |
|
||
|
|
|
2020 |
2019 |
2018 |
|
|
Credit Sale |
$78,112 |
$75,356 |
|
|
|
Receivables Turnover |
0 |
0 |
0 |
|
|
Average Receivable |
0 |
0 |
|
|
|
Receivables Turnover |
Not defined |
Not defined |
|
|
|
Since receivables are zero, therefore the receivable turnover is not defined |
|
6) |
Inventory Turnover |
|||
|
|
|
2020 |
2019 |
2018 |
|
|
Cost of goods sold |
$54,864 |
$53,299 |
|
|
|
Inventory Turnover |
$8,992 |
$9,497 |
8597 |
|
|
Average Inventory |
$8,992 |
$9,497 |
|
|
|
Inventory Turnover |
6.10142349 |
5.61219332 |
|
2) DuPont Analysis of ROE for two years
To perform DuPont analysis for the return on assets, we first compute the return on sales and the asset turnover. The formula for return on sales is net income divided by revenues. Meanwhile, asset turnover is calculated as revenues divided by total assets. Suppose the return on sales and asset turnover is multiplied by each other. In that case, the result will be equal to the return on assets, calculated as net income divided by total assets.
To perform DuPont analysis for the return on equity, we first compute the return on sales, total asset turnover, and financial leverage (equity multiplier). As said earlier, the return on sales is equal to net income divided by revenues. Total asset turnover is equal to revenues divided by total assets. Financial leverage (equity multiplier) is computed as total assets divided by total equity. If you multiply the return on sales by the total asset turnover and by the financial leverage, we can calculate the return on equity, which can alternatively be computed as net income divided by total equity
|
DuPont Analysis of ROE for two years |
2020 |
2019 |
|
Net Income |
3,281.00 |
2,937.00 |
|
Revenue |
78,112.00 |
75,356.00 |
|
Total Assets |
42,779.00 |
41,290.00 |
|
Total Equity |
11,833.00 |
11,297.00 |
|
|
|
|
|
Return on Sales |
4.20% |
3.90% |
|
Asset Turnover |
1.83 |
1.83 |
|
Return on Assets (Return on Sales * Asset Turnover) |
7.67% |
7.11% |
|
Financial Leverage (Equity Multiplier) |
3.62 |
3.65 |
|
Return on Equity (Net Income / Total Equity) |
27.73% |
26.00% |
TARGET CORPORATION
1
1) computed the following ratios for two years
1)
The debt ratio can be calculated as follows
2020
2019
Total Liabilities
$30,946
$29,993
Total Assets
$42,779
$41,290
Total Debt ratio
72.34%
72.64%
2)
Gross Profit margin
2020
2019
Gross Profit margin
$23,248
$22,057
Total Sales
$78,112
$75,356
Gross Profit margin
29.76%
29.27%
3)
Free Cash Flow
2020
2019
Cash Flow from operations
$7,117
$5,973
Capital Expenditure
$2,944
$3,416
Free Cash
Flow
$4,173
$2,557
TARGET CORPORATION 1
1) computed the following ratios for two years
1) The debt ratio can be calculated as follows
2020 2019
Total Liabilities $30,946 $29,993
Total Assets $42,779 $41,290
Total Debt ratio 72.34% 72.64%
2) Gross Profit margin
2020 2019
Gross Profit margin $23,248 $22,057
Total Sales $78,112 $75,356
Gross Profit margin 29.76% 29.27%
3) Free Cash Flow
2020 2019
Cash Flow from operations $7,117 $5,973
Capital Expenditure $2,944 $3,416
Free Cash Flow $4,173 $2,557
