FCF0015 Analysis Of Target Corporation


Perform your ratio analysis on Target:

A good place to start would be to perform a complete DuPont analysis on Target. The DuPont analysis might provide guidance as to what particular areas of the company should be examined next and what ratios should be calculated. Be sure to include ratios that cover the following areas:




Profitability
Debt Management
Liquidity
Asset Management
Market Value


In addition to the DuPont analysis ratios, be sure to present and discuss at least six relevant ratios that may best assess the Target’s performance.
Using an online database, such as com or a similar database, capture the ratio averages for your company’s industry to evaluate Target’s performance.
Provide an analysis that compares Target’s ratios to the industry standards.  There is no need to explain the purpose of the ratios. Rather, be sure to provide an interpretation of the results. This may entail some research from news sources on the company’s recent performance.
Explain the financial performance of Target and compare to the following comparable companies – please use Walmart, Kroger, Costco and whole foods. Reasons the companies were selected.
What data extraction strategy, process and methodology was used.
A financial comparison of your company to the average of the comparator group on the following financial factors.


Profitability
Debt Management
Liquidity
Asset Management
Value Creation – based on a the 3-year trend in Free


Select ratios to use in each of the five categories above and explain why the ratios are being used.
Lastly, collect the financial data for Target and the financial data of the four competitor companies –Walmart, Kroger, Costco and whole foods. The data can be collected from two financial data bases such as, Yahoo Finance, Lexis Nexis, Plunkett, or bizstats.com. Collect and calculate the averages of the four competitor companies.  (Please note that no ratio calculations are required for each company, the ratios should be readily available on the websites noted above. You will only need to calculate the average ratios for the four companies combined.). A brief explanation of the comparison among all the companies.

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