Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please provide ration analysis based on disclosures Ratio Analysis Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing FY 2
Please provide ration analysis based on disclosures
Ratio Analysis Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing FY 2 020 FY 2019 LIQUIDITY Working capital Formula current assets - current liabilities Calculation 2020: (20, 756 - 20,125) 2019: (12,902 - 14,487) 631.00 -1585.00 Current ratio Formula current assets / current liabilities Calculation 2020: (20, 756/20,125) 2019: (12,902/14,487] 0.8 Quick ratio Formula current assets - inventory / cument liabilities Calculation 2020: (20, 756-10,653)/20,125 2019: (12,902-8,9921/14,437 Inventory turnover Formula Cost of goods sold / average inventory Calculation 2020: 66,197/(10, 653+8,9921/2) 2019:54,864/M8 992+9,4971/2) 5.9 Average days to sell inventory Formula 365 / inventory tumiover Calculation 2020: (365/6.74) 20 19: (3 65/5.93] 54 62 SOLVINCY Debt to assets Formula Total liabilities / total assets Calculation 2020: 36,808 51 248) 2019: 30,946/42.779) 0.72 0.72 Debt to equity Formula total liabilities / total equity Calculation 2020: (36, 808/14,440] 2019: (30,946/11,833] 2.55 2. 62 Number of times interest is earned Formula EDIT / Interest expense Calculation 2020: (8,546+993)/993 2019: 14,191+4681/468 9.61 9.96 Plant assets to long-term liabilities Formula Net plant assets / Long-termliabilities (debt and borrowings ) Calculation | 2020: 26,879/11 536 = 2.3:1 2019: 26.283/11,338 = 2.3:1 2.3 PROATABILITY Net margin (return on sales Formula Net income/ net sales Calculation 2020: 4,368/93,561 = 0.047 = 4.7% 2019: 3,281/78,112 =0.042 =4.2% Asset turnover Formula Net sales / average total assets Calculation 2020: 93,561/(51, 248+42 7791/2) 2019: 78,112/(42,779+41 2901/2) 199 1.86 Return on investment Formula Net income / average total assets Calculation 2020: 4,368/(51,248+42,779)/2) 2019: 3,281/(42,779+41 2901/2] Return on equity Formula Net income/ average total stockf s" equity Calculation 2020: 4,368/(14,4 40+11,8331/2) 2019: 3,281/(11,833+11,297)/2) 33.3% 28.4% Earnings per share Formula Net earnings available for common stock / average number of shares outstanding Calculation 2020: 4,363/498,616,180 2019:3,281/500.961,951 0.0 00 019 0.00 0007 Price earning Formula Market price per share / earnings per share Calculation 2020: 125.88/0100 0009 2019: 81 52/0.0000 07 13,986 667 11,645,71 Book value per share (common] Formula Stockholders equity - preferred stock / outstanding common shares Calculation 2020: 11833-01/500961951 2019: (11833-0)/500961951 0100 002Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started