Target Corporation and ratios
Not what you're looking for?
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.
Purchase this Solution
Solution Summary
Describe in simple terms what each calculated number means to Target.
Solution Preview
Current Ratio:
An indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities, then that company is generally considered to have good short-term financial strength. If current liablities exceed current assets, then the company may have problems meeting its short-term obligations.
source: http://www.investorwords.com/1258/current_ratio.html
For target corporation, current ratio depicts the ability of Target corporation to meet its short term obligation to various parties such as its suppliers who supply various merchandise to its stores.
Average collection period:
The average time period for which receivables are outstanding. Equal to accounts receivable divided by average daily sales. also called collection ratio.
source: http://www.investorwords.com/349/average_collection_period.html
The average ...
Education
- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
Recent Feedback
- "Thank you. "
- "Thank you"
- "Thank you. I got 20/20 last week for my discussion you help me out with."
- "Thank you. Great Job. "
- "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.