Research the annual report for Target Corp.
Go to Statement of Operations on page 35 in the above link. Use Targets income statement and prepare a horizontal analysis.
- What is the consensus?
- What line items stand out?
- What areas of the financial statement are consistent and what areas need improvement?
Consolidated Statements of Operations 666 68 (millions, except per share data) 2017 2016 2015 Sales $ 71,879 $ 69,495 $ 73,785 Cost of sales (a) 51,125 49,145 52,241 Gross margin 20,754 20,350 21,544 Selling, general and administrative expenses 14,248 13,356 14,665 Depreciation and amortization (exclusive of depreciation included in cost of sales) () 2,194 2,025 1,969 Gain on sale (620) Earnings from continuing operations before interest expense and income taxes 4,312 4,969 5,530 Net interest expense 1,004 607 Earnings from continuing operations before income taxes 3,646 3,965 4,923 Provision for income taxes 718 1,296 1,602 Net earnings from continuing operations 2,928 2,669 3,321 Discontinued operations, net of tax 42 Net earnings $ 2,934 $ 2,737 $ 3,363 Basic earnings per share Continuing operations $ 5.35 $ 4.62 $ 5.29 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.36 $ 4.74 $ 5.35 Diluted earnings per share Continuing operations $ 5.32 $ 4.58 $ 5.25 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.33 $ 4.70 $ 5.31 Weighted average common shares outstanding Basic 546.8 577.6 627.7 Dilutive effect of share-based awards 3.5 Diluted 550. 3 582.5 632.9 Antidilutive shares 4.1 0.1 Dividends declared per share $ 2.46 $ 2.36 $ 2.20 Note: Per share amounts may not foot due to rounding. Refer to Note 3 for additional information about a reclassification of supply chain-related depreciation expense to Cost of Sales. See accompanying Notes to Consolidated Financial Statements, 5.2 (a) Consolidated Statements of Operations 666 68 (millions, except per share data) 2017 2016 2015 Sales $ 71,879 $ 69,495 $ 73,785 Cost of sales (a) 51,125 49,145 52,241 Gross margin 20,754 20,350 21,544 Selling, general and administrative expenses 14,248 13,356 14,665 Depreciation and amortization (exclusive of depreciation included in cost of sales) () 2,194 2,025 1,969 Gain on sale (620) Earnings from continuing operations before interest expense and income taxes 4,312 4,969 5,530 Net interest expense 1,004 607 Earnings from continuing operations before income taxes 3,646 3,965 4,923 Provision for income taxes 718 1,296 1,602 Net earnings from continuing operations 2,928 2,669 3,321 Discontinued operations, net of tax 42 Net earnings $ 2,934 $ 2,737 $ 3,363 Basic earnings per share Continuing operations $ 5.35 $ 4.62 $ 5.29 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.36 $ 4.74 $ 5.35 Diluted earnings per share Continuing operations $ 5.32 $ 4.58 $ 5.25 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.33 $ 4.70 $ 5.31 Weighted average common shares outstanding Basic 546.8 577.6 627.7 Dilutive effect of share-based awards 3.5 Diluted 550. 3 582.5 632.9 Antidilutive shares 4.1 0.1 Dividends declared per share $ 2.46 $ 2.36 $ 2.20 Note: Per share amounts may not foot due to rounding. Refer to Note 3 for additional information about a reclassification of supply chain-related depreciation expense to Cost of Sales. See accompanying Notes to Consolidated Financial Statements, 5.2 (a)
