Target Financial Analysis - 1288 Words

Juan A. Torres Rodriguez D01596038 Mini Case Assignment Target Corp. started in 1902 as Dayton’s Dry Goods company. At 1911, Dayton’s Dry Goods is renames as Dayton Company, and commonly known as Dayton’s Department Store. In 1946 Dayton’s Department Stores started giving the community back 5% of their pretax profits, a practice that Target Corp still maintains. During the 1960’s Dayton’s create a new kind of store to appeal the masses called Target, opening the first Target store in the Twin Cities on May 1, 1962. The industry sector in which Target Corporation competes is in the retail sector reaching the $62.87 Billion in sales. As mentioned above, Target competes in the retail sector, which makes the operating risks of†¦show more content†¦After this episode in the economy we can see that Target’s stock has recovered significantly. After performing the calculations, Target’s capital structure is optimal. However, the debt to capitalization ratio is high, at 50%. Target needs to lower its Long-Term Debt. Comparing Target’s debt to capital to the industry average, the industry average is 0.36. However I would invest in Target. I think I would have an advantage over outsiders, because I used to work at Target Corporation. Target is a company that is constantly growing, and their sales demonstrate their market advantage over other retailers. What convinced me to invest into Target mostly was the P/E ratio. Comparing it to a corporation like Wal-Mart, which is really successful, Target’s P/E ratio is acceptable and attractive. References 1. Scovaner, Douglas A. (2011). Target 2011 Annual Report. Retrieved on November 18, 2012: https://corporate.target.com/annual-reports/2011/images/company/annual_report_2011/documents/Target_2011_Annual_Report.pdf 2. Stock Analysis on net. (2012). Retrieved on November 18, 2012. http://www.stock-analysis-on.net/NYSE/Company/Target-Corp/Ratios/Long-term-Debt-and-Solvency#Debt-to-Capital 3. Retrieved on November 18, 2012 http://ycharts.com/companies/TGT/pe_ratio 4. Yahoo! Finance. (2012). Retrieved on November 18, 2012. http://finance.yahoo.com/q/bc?s=TGT+Basic+Chartamp;t=5yShow MoreRelatedTarget Financial Analysis1273 Words   |  6 Pagescontents Introduction TARGET Corp ROIC vs. WACC Target Corp vs. Industry ROIC target Corp vs. Industry Revenue Trend Target Corp Operating Expense vs. Industry operating expense as a percent of revenue Target corp Operating Profit vs industry operating profit as a percent of revenue. target Corp Economic Moat Conclusion Works Cited Table of figures Figure 1 Target Corp ROIC vs WACC; Source: Mergent Online; Annual Studies. Figure 2 Target Corp vs. Industry ROIC; Source:Read MoreThe Financial Analysis of Target2246 Words   |  9 PagesFinancial Analysis and Valuation for Target Inc. [pic] CONTENTS: 1. Financial Highlights of Target Business†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2. Target Financial Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3. Valuation Models†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4. Corporate Finance Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5. Investment Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6. The Impact and Implication of Financial Crisis on Target’s Financial Performance †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7. Conclusions †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Read MoreTarget Financial Analysis Paper913 Words   |  4 Pagespercent of the total assets were these capital investments? A calculation is used to assess Target and Walmart efficiency that allocating the capital under its control to profitable investments. The return on invested capital gives a sense of how well a company is using their money to generate returns. However, Target sales increased to 4% in 2015 to 2016 but then declined significantly in 2016 to 2017. Target earnings from continuing operations before interest expense and income taxes increased byRead MoreTarget Corp: Financial Analysis2786 Words   |  12 PagesTarget Corporation: A Financial Competitive Analysis [pic] By: O.P. For Econ 2304 Prof. Alexander [pic] Overview Target has been a publicly traded company since 1963, but has been around since 1902. 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