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Target Corporation: Liquidity and Efficiency

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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.

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Solution Summary

Your tutorial is 359 words and two references and includes a ratio analysis for 2004-2006 for Target and Walmart.

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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 ...

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