Examine Target for the years 2004-2006 and compare to Walmart.
Comment on the relative liquidity and efficiency these firms. How does Target compare to Walmart? Would you invest in this company? Defend your position with reasons and facts.
See the 2004-2006 ratios for Target and Walmart in excel, attached.
Liquidity and Results of Target vs. Walmart (competition)
Target is more liquid than its main competitor, Walmart. If you review the current ratio (attached in excel), you will see that Target has a current ratio over 1 (positive working capital) but Walmart has a current ratio below 1 (negative working capital).
For inventory management, however, target carries over 60 days of goods, on ...
Solution Summary
Your tutorial is 359 words and two references and includes a ratio analysis for 2004-2006 for Target and Walmart.
The ability of a business to meet its short-term cash requirements is called liquidity. It is affected by the timing of a company's cash inflows and outflows along with prospects for future performance. Efficiency refers to how productive a company is in using its assets, and it is usually measured relative to how much revenue i
Jan-05 Jan-04 Jan-03 Jan-02 Jan-01
Current Ratio
Current Assets 1.69 1.55 1.59 1.37 1.16
Current Liabilities
Quick (Acid-Test) Ratio
Current Assets-Inventory 1.04 0.91 0.95 0.74 0.49
Current Liabilities
Inventory Turnover
Cost of Goods Sold
Use the financial statements in attachment to perform the following:
a. Calculate the solvency ratios, current ratio, qucik ratio, net working capital, and working capital requirements for each of the five years. Discuss and interpret the trends you see.
b. Calculate the cash flow from operations for 2001 through 2004 and
Compare and contrast the different diversification strategies being used by Target Corporation and competitors within the discount variety retail industry. Recommend a diversification strategy that best fits the discount variety retail industry.
Armhurst Corporation is the maker of fine fitness equipment. Armburst's bank has been pressuring the firm to improve its liquidity. Which of the following actions proposed by the CFO do you believe will actually achieve this objective? Why or why not?
a. Sell new equity and use the proceeds to purchase a new plant site.
Stetson Corporation uses target costing and sells a product for $40 per unit. The company seeks a profit margin equal to 30% of sales. If target-costing calculations revealed a need for a $4 cost reduction, the firm's current manufacturing cost must be:
A. $12
B. $24
C. $28
D. $32
E. an amount other than those listed ab
Describe in simple terms waht each calculated number means to Target.
Current Ratio, Average collection period, Inventory turnover ratio, Cash Ratio and Net Profit margin.
Please help with this problem, what does each of the above listed items mean to Target. I am beyond confused.
