TARGET CORPORATION
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target_data.xlsxVertical_Horizonal Analysis
| Table I | ||||||
| Target | Vertical Analysis year 1 | Vertical Analysis Year 2 | Horizontal Analysis | |||
| Income Statement (in thousands) | 2014 | 2013 | 2012 | 2013 | 2014 | |
| Net Revenue (net sales) | 72,596,000 | 73,301,000 | 69,865,000 | 100.00% | 100.00% | -0.009617877 |
| Cost of Goods | 51,160,000 | 50,568,000 | 47,860,000 | 0.6898678054 | 0.7047220233 | 0.0117070084 |
| Gross Profit | 21,436,000 | 22,733,000 | 22,005,000 | 0.3101321946 | 0.2952779767 | -0.0570536225 |
| Total Operating Expenses | 17,207,000 | 17,362,000 | 16,683,000 | 0.2368589787 | 0.2370240785 | -0.0089275429 |
| Earnings from Operations | 4,229,000 | 5,371,000 | 5,322,000 | 0.0732732159 | 0.0582538983 | -0.2126233476 |
| Interest Expense | 1,126,000 | 762,000 | 866,000 | 0.0103954926 | 0.0155104964 | 0.4776902887 |
| Net Earnings | 1,971,000 | 2,999,000 | 2,929,000 | 0.0409134937 | 0.0271502562 | -0.342780927 |
| Balance Sheet (in thousands) | ||||||
| Cash/cash equivalents (cash) | 695,000 | 784,000 | 794,000 | 0.0162780558 | 0.0155993985 | 0.8864795918 |
| Short term investments | - 0 | - 0 | - 0 | 0 | 0 | 0 |
| Net Accounts Receivable | - 0 | 5,841,000 | 5,927,000 | 0.121275668 | 0 | 0 |
| Inventory | 8,766,000 | 7,903,000 | 7,918,000 | 0.1640886157 | 0.1967544273 | 1.109199038 |
| Current Assets | 11,573,000 | 16,388,000 | 16,449,000 | 0.3402611964 | 0.259758041 | 0.7061874542 |
| Net Fixed Assets | 31,378,000 | 30,653,000 | 29,149,000 | 0.6364429126 | 0.7042847844 | 1.023651845 |
| Total Assets | 44,553,000 | 48,163,000 | 46,630,000 | 100.00% | 100.00% | 0.9250461973 |
| Current Liabilities | 12,777,000 | 14,031,000 | 14,287,000 | 0.2913232149 | 0.2867820349 | 0.91062647 |
| Long Term Liabilities | 15,545,000 | 17,574,000 | 16,522,000 | 0.3648859083 | 0.3489102866 | 0.8845453511 |
| Total liabilities | 28,322,000 | 31,605,000 | 30,809,000 | 0.6562091232 | 0.6356923215 | 0.896124031 |
| Stockholders Equity | 16,231,000 | 16,558,000 | 15,821,000 | 0.3437908768 | 0.3643076785 | 0.9802512381 |
| Total liabilities + Stockholders Equity | 44,553,000 | 48,163,000 | 46,630,000 | 100.00% | 100.00% | 0.9250461973 |
| 68.61% | ||||||
| Prepared by Holly Beimert | ||||||
| Select numbers taken from financial statements | ||||||
| Mergent Online | ||||||
Financial Ratios
| Table II | 2013 | 2014 | Wal-Mart | |||
| Company | Company* | Company* | Competition or Industry Ratio** | |||
| Formula | Year 1 | Year 2 | 2014 | |||
| Liquidity Ratios | 1. Complete the formula column. See example for gross profit percent. | |||||
| Current Ratio | Current Assets / Current Liabilities | 1.167985176 | 0.91 | 0.88 | 2. Use the numbers on the previous page to complete the ratios-Use Excel formulas. | |
| Acid Test Ratio | (Cash + Short Term Investments + A/R) / Current Liabilities | 0.4721687692 | 0.0543946153 | 0.2 | 3. One * means you did the calculations | |
| Two ** means you got the information from another source (cite that source) | ||||||
| Asset Management Ratio | 4. For column E choose a competitor or the Industry. | |||||
| Inventory Turnover | Cost of Goods Sold / Average Inventory | 6.392516276 | 6.138340632 | 8.08 | You do not need to calculate the competitor ratios, you can use pre-calculated ratios | |
| just remember to cite your source. (like a database) | ||||||
| Solvency Ratios | ||||||
| Debt ratio | Total Liabilities / Total Assets | 0.6562091232 | 0.6356923215 | 0.6275720265 | ||
| Times Interest Earned Ratio | Income Before Taxes and Interest / Interest Charged | 7.05 | 3.76 | 7.49 | ||
| Profitability Ratios | ||||||
| Gross Profit Percent | Gross profit/net revenue | 0.3101321946 | 0.2952779767 | 0.2482185372 | ||
| Return on Net Sales | Net income/net sales (revenue) | 0.0409134937 | 0.0271502562 | 0.0336388869 | ||
| EPS** | 3.07 | 4.88 | ||||
| Market Analysis | ||||||
| Price Earning Ratio** | 31.7 | 17.59 | ||||
| Dividend Yield** | 2.52 | 2.24 | ||||
| *Calculated by Author | ||||||
| **Information from Target Corporation and Wal-Mart financial statements and annual reports obtained from Mergent Online. Information also obtained from NASDQ online | ||||||
| http://www.nasdaq.com/symbol/tgt/ | ||||||
| Prepared by: Holly Beimert |
