Explore BrainMass

2010-2012 Annual Report Target liquidity horizontal,Walmart

I need help doing:

Drafting a Financial statement analysis of Target Retail Stores

Can you help me with the questions?

!).What industry is it in?, What are its main products or services, Who are its competitors?

2).Do a three-year horizontal analysis of the income statement and balance sheet of Target Retail Stores.

3) Discuss the importance and meaning of horizontal analysis, Discuss both the positive and negative trends presented in your company.

4). Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period.

5).Discuss and interpret the ratios that you calculated, Discuss potential liquidity issues based on your calculations of the current and quick ratios, Discuss liquidity issues of competitive companies within the same industry.

6). Are there any factors that could be erroneously influencing the results of the ratios?

7). Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see?

8). Would recommend avoiding this company as long as you provide support for your position

Solution Preview

See attached in Excel (three tabs) for ratios, raw data, and analysis.

1. Targent is a retail store, competing with CostCo and Walmart for price and value on an array of household, clothing, food, electronics and garden items.

2. Horizontal analysis in excel, attached.

3. Horizontal analysis is important because it shows the trend over time for each line item. For instance, we can see that sales are growing at a different rate than expenses and profits. The sales growth is positive but the decrease in cash and the rise in debt is ...

Solution Summary

Your discussion is a few sentences for each questions. The tutorial includes ratios, instructional notes for each, comparisons to Walmart and analysis of 2010, 2011 and 2012 for the income statement and balance sheet was well as liquidity and leverage ratios.