1. Using the financial data from the most current financial statements, calculate two financial ratios for your company, and then provide an analysis of what those ratios mean specifically for Target.

2. From the financial statements or other content in the annual report, identify at least one area of weakness you think Target can improve upon. Explain thoroughly how they can improve.

10-k report for Target, debt to equity ratio, and long-term debt to total assets ratio.

Source: Sec.gov Target 10-k

\begin{tabular}{|c|c|} \hline Cash required for investing activities & (5,504)(3,154)(2,591) \\ \hline \multicolumn{2}{|l|}{ Financing activities } \\ \hline Additions to long-term debt & 1,972 \\ \hline Reductions of long-term debt & \begin{tabular}{lll} (163) & (1,147) & (2,415) \end{tabular} \\ \hline Dividends paid & (1,836)(1,548)(1,343) \\ \hline Repurchase of stock & (2,826)(7,356) \\ \hline Stock option exercises & 23 \\ \hline Cash required for financing activities & (2,196)(8,071)(2,000) \\ \hline \begin{tabular}{l} Net (decrease)/ increase in cash and cash \\ equivalents \end{tabular} & (3,682)(2,600) \\ \hline \begin{tabular}{l} Cash and cash equivalents at beginning of \\ period \end{tabular} & 5,911 \\ \hline Cash and cash equivalents at end of period & $2,229$5,911$8,511 \\ \hline \multicolumn{2}{|l|}{ Supplemental information } \\ \hline Interest paid, net of capitalized interest & 449$414$939 \\ \hline Income taxes paid & 2,063 \\ \hline \begin{tabular}{l} Leased assets obtained in exchange for \\ new finance lease liabilities \end{tabular} & 224 \\ \hline \begin{tabular}{l} Leased assets obtained in exchange for \\ new operating lease liabilities \end{tabular} & 329 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline (millions) & 2022 & 2021 & 2020 \\ \hline \multicolumn{4}{|l|}{ Operating activities } \\ \hline Net earnings & $2,780 & $6,946 & $4,368 \\ \hline \multicolumn{4}{|l|}{\begin{tabular}{l} Adjustments to reconcile net earnings to \\ cash provided by operations: \end{tabular}} \\ \hline Depreciation and amortization & 2,700 & 2,642 & 2,485 \\ \hline Share-based compensation expense & 220 & 228 & 200 \\ \hline Deferred income taxes & 582 & 522 & (184) \\ \hline Gain on Dermstore sale & & (335) & z \\ \hline Loss on debt extinguishment & & & 512 \\ \hline Noncash losses / (gains) and other, net & 172 & 67 & 86 \\ \hline \multicolumn{4}{|l|}{ Changes in operating accounts: } \\ \hline Inventory & 403 & (3,249) & (1,661) \\ \hline Other assets & 22 & (78) & (137) \\ \hline Accounts payable & (2,237) & 2,628 & 2,925 \\ \hline Accrued and other liabilities & (624) & (746) & 1,931 \\ \hline Cash provided by operating activities & 4,018 & 8,625 & 10,525 \\ \hline \multicolumn{4}{|l|}{ Investing activities } \\ \hline Expenditures for property and equipment & (5,528) & (3,544) & (2,649) \\ \hline \begin{tabular}{l} Proceeds from disposal of property and \\ equipment \end{tabular} & 8 & 27 & 42 \\ \hline Proceeds from Dermstore sale & & 356 & \\ \hline Other investments & 16 & 7 & 16 \\ \hline Cash required for investing activities & (5,504) & (3,154) & (2,591) \\ \hline \multicolumn{4}{|l|}{ Financing activities } \\ \hline Additions to long-term debt & 2,625 & 1,972 & 2,480 \\ \hline Reductions of long-term debt & (163) & (1,147) & (2,415) \\ \hline Dividends paid & (1,836) & (1,548) & (1,343) \\ \hline Repurchase of stock & (2,826) & (7,356) & (745) \\ \hline Stock option exercises & 4 & 8 & \\ \hline \end{tabular} Consolidated Statements of Comprehensive Income Cnnenlidatad Ctatamante af nnaratinne \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Operating activities } \\ \hline Net earnings & $2,780 & $6,946$ & $4,368 \\ \hline \multicolumn{4}{|l|}{\begin{tabular}{l} Adjustments to reconcile net earnings to \\ cash provided by operations: \end{tabular}} \\ \hline Depreciation and amortization & 2,700 & 2,642 & 2,485 \\ \hline Share-based compensation expense & 220 & 228 & 200 \\ \hline Deferred income taxes & 582 & 522 & (184) \\ \hline Gain on Dermstore sale & & (335) & z \\ \hline Loss on debt extinguishment & z & z & 512 \\ \hline Noncash losses / (gains) and other, net & 172 & 67 & 86 \\ \hline \multicolumn{4}{|l|}{ Changes in operating accounts: } \\ \hline Inventory & 403 & (3,249) & (1,661) \\ \hline Other assets & 22 & (78) & (137) \\ \hline Accounts payable & (2,237) & 2,628 & 2,925 \\ \hline Accrued and other liabilities & (624) & (746) & 1,931 \\ \hline Cash provided by operating activities & 4,018 & 8,625 & 10,525 \\ \hline \multicolumn{4}{|l|}{ Investing activities } \\ \hline Expenditures for property and equipment & (5,528) & (3,544) & (2,649) \\ \hline \begin{tabular}{l} Proceeds from disposal of property and \\ equipment \end{tabular} & 8 & 27 & 42 \\ \hline Proceeds from Dermstore sale & & 356 & Z \\ \hline Other investments & 16 & 7 & 16 \\ \hline Cash required for investing activities & (5,504) & (3,154) & (2,591) \\ \hline \multicolumn{4}{|l|}{ Financing activities } \\ \hline Additions to long-term debt & 2,625 & 1,972 & 2,480 \\ \hline Reductions of long-term debt & (163) & (1,147) & (2,415) \\ \hline Dividends paid & (1,836) & (1,548) & (1,343) \\ \hline Repurchase of stock & (2,826) & (7,356) & (745) \\ \hline Stock option exercises & 4 & 8 & 23 \\ \hline Cash required for financing activities & (2,196) & (8,071) & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Total & $ & $ \\ \hline \multicolumn{3}{|l|}{ Liabilities and shareholders' investment } \\ \hline & 13,487 & 15,478 \\ \hline Accounts payable & $ & $ \\ \hline Accrued and other current liabilities & 5,883 & 6,098 \\ \hline \begin{tabular}{l} Current portion of long-term debt and \\ other borrowings \end{tabular} & 130 & 171 \\ \hline Total current liabilities & 19,500 & 21,747 \\ \hline Long-term debt and other borrowings & 16,009 & 13,549 \\ \hline Noncurrent operating lease liabilities & 2,638 & 2,493 \\ \hline Deferred income taxes & 2,196 & 1,566 \\ \hline Other noncurrent liabilities & 1,760 & 1,629 \\ \hline Total noncurrent liabilities & 22,603 & 19,237 \\ \hline \multicolumn{3}{|l|}{ Shareholders' investment } \\ \hline Common stock & 38 & 39 \\ \hline Additional paid-in capital & 6,608 & 6,421 \\ \hline Retained earnings & 5,005 & 6,920 \\ \hline \begin{tabular}{l} Accumulated other comprehensive \\ loss \end{tabular} & (419) & (553) \\ \hline Total shareholders' investment & 11,232 & 12,827 \\ \hline & 53,335 & 53,811 \\ \hline & & \\ \hline \end{tabular}