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Target Corp (Nyse: Tgt) Analysis

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Target Corp (NYSE: TGT)

PME 604 Project Financial Management Project
Target Description
Target is a general Merchandise store in the discounter genre. Its biggest competitor is Wal-Mart. Wal-Mart’s success is based on its differentiation in its market. The main differentiation is its distinct marketing strategy. Target’s distinction from Wal-Mart is the shopping experience. The stores are clean, have a slightly more sophisticated environment and shorter lines. As stated by the Gerald Storch Targets Vice Chairman It positioned itself as a “mass merchandiser of affordable chic goods”.
A table listing the financial statement ratios listed above in which you list ratio figures for the most recent full year, prior year and industry average. Target 2013 | Target 2012 | Industry Average * | Current Ratio = 1.68 | Current Ratio = 1.15 | 2.0 | Inventory Turnover = 9.27 | Inventory Turnover = 8.23 | 3.6 | Debt to Equity = 1.91 | Debt to Equity = 1.95 | 3.3 | Net Profit Margin = 4.09% | Net Profit Margin = 4.19% | 3% | ROE = 18.1% | ROE = 18.5% | NA | P/E Ration as of 1/29/14 = 12.45 | NA | NA |
* Industry Averages per http://www.retailowner.com

Current Ratio
The Current Ration formula = current assets/current liabilities

For 2013, Current assets = 16,388, Current Liabilities =14,031, Current Ratio = 1.68
For 2012, Current assets = 16,449, Current Liabilities = 14,287, Current Ratio = 1.151

The current ratio is sometimes called the "liquidity ratio" because its use is mainly to show the position a company is in with regard to paying back its short term liabilities with its short term assets. If a company has a high ratio then a company is in a better position to pay its obligations. A ratio <1 states that a company can not pay its obligations if it suddenly had to and would be considered a bad sign though not a lethal one since…...

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