Section 2. Trend Analysis
- Using the vertical analysis of the income statements, identify the significant trends
- Using the vertical analysis of the balance sheets, identify the significant trends
- Using the horizontal analysis of the income statements, identify the significant trends
- Using the horizontal analysis of the balance sheets, identify the significant trends
FY 2018 % 1,556 9,497 3.8% 23.0% 1,466 12,519 3.6% 30.3% Vertical Analysis - Balance Sheets Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing. You may have to insert additional rows based on the actual Target Consolidated statement FY 2019 % ASSETS Cash and cash equivalents 2,577 6.0% $ Inventory 8,992 21.0% Assets of discontinued operations Other current assets 1,333 3.1% $ Total current assets $ 12,902 30.2% Property and equipment Land 6,036 14.1%$ Buildings and improvements 30,603 71.5% Fixtures and equipment 6,083 14.2% $ Computer hardware and software 2.692 6.3%$ Construction-in-progress 533 1.2% $ Accumulated depreciation (19,664 -46.0% $ Property and equipment, net $ 26,283 61.4% $ Operating lease assets $ 2,236 5.2% $ Other noncurrent assets $ 1,358 3.2% Total assets $ 42,779 100.00% $ LIABILITIES Accounts payable 9,920 23.2% $ Accrued and other current liabilities 4,406 10.3%$ Current portion of long-term debt and other borrowings 161 0.4% $ Liabilities of discontinued operations Total current liabilities 14,487 33.9% $ Long-term debt and other borrowings 11,338 26.5%$ Deferred income taxes 1,122 2.6% $ Noncurrent operating lease liabilities $ 2,275 5.3%$ Other noncurrent liabilities $ 1,724 4.0% $ Total noncurrent liabilities $ 16,459 38.5%$ Total liabilities $ 30,946 72.3%$ SHAREHOLDERS' INVESTMENT Common stock 42 0.1% $ Additional paid-in capital 6,226 14.6%$ Retained caminas 6.422 15.09 6,064 29,240 5,912 2,544 460 (18,687) 25,533 1,965 1,273 41,290 14.7% 70.8% 14.3% 6.2% 1.1% -45.3% 61.8% 4.8% 3.1% 100.00% 9,761 4,201 1,052 23.6% 10.2% 2.5% 36.4% 15,014 10,223 972 2,004 1,780 14,979 29,993 24.8% 2.4% 4.9% 4.3% 36.3% 72.6% 43 6,042 6.017 0.1% 14.6% S 2,224 $ Horizontal Analysis of the Income Statements Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing. You may have to insert additional rows based on the actual Target Consolidated statement FY 2019 FY 2018 $ Change Sales $ 78,112$ 75,356 $ 2,756 Cost of sales $ 54,864 $ 53,299 $ 1,565 Gross margin $ 23,248 $ 22,057 $ 1,191 Selling, general, and administrative expenses $ 16,233$ 15,723 $ 510 Depreciation and amortization 2,357 $ 133 Gain on sale $ Earnings from continuing operations before interest and taxes $ 4,658 $ 4,110 $ 548 Net interest expense $ 477 $ 461 $ 16 Net other (income) / expense $ (9$ (27) $ 18 Earnings from continuing operations before income taxes $ 4,190 $ 3,676 $ 514 Provision for income taxes $ 921 $ 746 $ 175 Net earnings from continuing operations $ 3,269 $ 2,930 $ 339 Discontinued operations, net of tax 12 7 $ 5 Net earnings/(loss) $ 3,281 $ 2,937 $ 344 % Change FY 2017 $ Change % Change 3.66% 72,714 $ 2,642 3.63% 2.94% $ 51,125 $ 2,174 4.25% 5.40% $ 21,589 $ 468 2.17% 3.24% 15,140 $ 583 3.85% 5.98% $ 2,225$ (1) -0.04% 100.00% $ 100.00% 13.33% $ 4,224 $ (114) -2.70% 3.47% 653 $ (192) -29.40% -66.67% $ (59) $ 32 -54.24% 13.98% $ 3,630 $ 46 1.27% 23.46% $ 722 $ 24 3.32% 11.57% $ 2,908 $ 22 0.76% 71.43% $ 6 $ 1 16.67% 11.71% $ 2,914 $ 23 0.79% Horizontal Analysis of the Balance Sheets Target Corporation FY 2019 FY 2018 $ Change % Change FY 2017 $ Change % Change 1,021 (505) 65.62% $ -5.32% $ (1,087) 900 2,643 $ 8,597 S $ -41.13% 10.47% $ 2,577 $ 8,992 $ 1,333S 12,902 $ $ $ (133) 383 -9.07% $ 3.06% $ 1,300 $ 12,540 $ 166 (21) 12.77% -0.17% $ INSTRUCTIONS: Change XX to the year of the report you are analyzing. You may have to insert additional rows based on the actual Target Consolidated statement ASSETS Cash and cash equivalents Inventory Assets of discontinued operations Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Operating lease asset Other noncurrent assets Total assets LIABILITIES Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent operating lease liabilities Other noncurrent liabilities Total noncurrent liabilities Total liabilities SHAREHOLDERS' INVESTMENT Common stock Additional paid-in capital Retained caminas 6,036 30,603S 6,083 $ 2,692 S 533$ (19,664) $ 26,283 $ 2,236S 1,358S 42,779 $ 1,556 $ 9,497 $ $ 1,466 $ 12,519 $ $ 6,064 $ 29,240$ 5,912$ 2,544 $ 460 $ (18,687) $ 25,533 $ 1,965$ 1,273 $ 41,290 $ (28) 1,363 171 148 73 (977) 750 271 85 1,489 -0.46% $ 4.66% $ 2.89%$ 5.82% $ 15.87% $ 5.23% 2.94% S 13.79% $ 6.68% 3.61% $ 6,095$ 28,131$ 5,623$ 2,645$ 440$ (18,398) $ 24,536 $ 1884 $ 1,343S 40,303 $ (31) 1,109 289 (101) 20 (289) 997 81 (70) 987 -0.51% 3.94% 5.14% -3.82% 4.55% 1.57% 4.06% 4.30% -5.21% 2.45% $ $ $ 159 1.63%$ 4.88% $ -84.70% $ 1,084 107 205 (891) 12.49% 2.61% 274.38% 771 9,920$ 4406S 161 $ $ 14,487 $ 11,338$ 1,122 2,275$ 1,724 $ 16,459 $ 30,946 $ 9,761$ 4,201$ 1,052 $ $ 15,014 $ 10,223$ 972 $ 2,004 $ 1,780 $ 14,979 $ 29,993 $ (527) 1,115 150 271 (56) 1,480 953 -3.51% $ 10.91% $ 15.43% $ 13.52% $ -3.15% $ 9.88% $ 8,677 $ 4,094 $ 281 $ $ 13,052 $ 11,117 $ 693 $ 1,924 $ 1,866 $ 15,600 $ 28,652 $ $ 1,962 (894) 279 80 (86) (621) 1,341 15.03% -8.04% 40.26% 4.16% -4.61% -3.98% 4.68% $ $ 3.18% $ -4.44% 42$ 6,226 $ 6.422 43 $ 6,042 $ 60 (1) 184 416 -2.33% $ 3.05% $ 6014 45$ 5,858$ 6.495 IS (2) 184 14781 3.14% -7 369 536 4.74% $ -3.04% Total shareholders' investment Total liabilities and shareholders' investment 11,833 $ 42,779 $ 11,297 $ 41,290 $ 11,651 $ 40,303 $ (354) 987 $ 1,489 3.61% $ 2.45% Number of shares outstanding (in millions) 504 518 542 FY 2018 % 1,556 9,497 3.8% 23.0% 1,466 12,519 3.6% 30.3% Vertical Analysis - Balance Sheets Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing. You may have to insert additional rows based on the actual Target Consolidated statement FY 2019 % ASSETS Cash and cash equivalents 2,577 6.0% $ Inventory 8,992 21.0% Assets of discontinued operations Other current assets 1,333 3.1% $ Total current assets $ 12,902 30.2% Property and equipment Land 6,036 14.1%$ Buildings and improvements 30,603 71.5% Fixtures and equipment 6,083 14.2% $ Computer hardware and software 2.692 6.3%$ Construction-in-progress 533 1.2% $ Accumulated depreciation (19,664 -46.0% $ Property and equipment, net $ 26,283 61.4% $ Operating lease assets $ 2,236 5.2% $ Other noncurrent assets $ 1,358 3.2% Total assets $ 42,779 100.00% $ LIABILITIES Accounts payable 9,920 23.2% $ Accrued and other current liabilities 4,406 10.3%$ Current portion of long-term debt and other borrowings 161 0.4% $ Liabilities of discontinued operations Total current liabilities 14,487 33.9% $ Long-term debt and other borrowings 11,338 26.5%$ Deferred income taxes 1,122 2.6% $ Noncurrent operating lease liabilities $ 2,275 5.3%$ Other noncurrent liabilities $ 1,724 4.0% $ Total noncurrent liabilities $ 16,459 38.5%$ Total liabilities $ 30,946 72.3%$ SHAREHOLDERS' INVESTMENT Common stock 42 0.1% $ Additional paid-in capital 6,226 14.6%$ Retained caminas 6.422 15.09 6,064 29,240 5,912 2,544 460 (18,687) 25,533 1,965 1,273 41,290 14.7% 70.8% 14.3% 6.2% 1.1% -45.3% 61.8% 4.8% 3.1% 100.00% 9,761 4,201 1,052 23.6% 10.2% 2.5% 36.4% 15,014 10,223 972 2,004 1,780 14,979 29,993 24.8% 2.4% 4.9% 4.3% 36.3% 72.6% 43 6,042 6.017 0.1% 14.6% S 2,224 $ Horizontal Analysis of the Income Statements Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing. You may have to insert additional rows based on the actual Target Consolidated statement FY 2019 FY 2018 $ Change Sales $ 78,112$ 75,356 $ 2,756 Cost of sales $ 54,864 $ 53,299 $ 1,565 Gross margin $ 23,248 $ 22,057 $ 1,191 Selling, general, and administrative expenses $ 16,233$ 15,723 $ 510 Depreciation and amortization 2,357 $ 133 Gain on sale $ Earnings from continuing operations before interest and taxes $ 4,658 $ 4,110 $ 548 Net interest expense $ 477 $ 461 $ 16 Net other (income) / expense $ (9$ (27) $ 18 Earnings from continuing operations before income taxes $ 4,190 $ 3,676 $ 514 Provision for income taxes $ 921 $ 746 $ 175 Net earnings from continuing operations $ 3,269 $ 2,930 $ 339 Discontinued operations, net of tax 12 7 $ 5 Net earnings/(loss) $ 3,281 $ 2,937 $ 344 % Change FY 2017 $ Change % Change 3.66% 72,714 $ 2,642 3.63% 2.94% $ 51,125 $ 2,174 4.25% 5.40% $ 21,589 $ 468 2.17% 3.24% 15,140 $ 583 3.85% 5.98% $ 2,225$ (1) -0.04% 100.00% $ 100.00% 13.33% $ 4,224 $ (114) -2.70% 3.47% 653 $ (192) -29.40% -66.67% $ (59) $ 32 -54.24% 13.98% $ 3,630 $ 46 1.27% 23.46% $ 722 $ 24 3.32% 11.57% $ 2,908 $ 22 0.76% 71.43% $ 6 $ 1 16.67% 11.71% $ 2,914 $ 23 0.79% Horizontal Analysis of the Balance Sheets Target Corporation FY 2019 FY 2018 $ Change % Change FY 2017 $ Change % Change 1,021 (505) 65.62% $ -5.32% $ (1,087) 900 2,643 $ 8,597 S $ -41.13% 10.47% $ 2,577 $ 8,992 $ 1,333S 12,902 $ $ $ (133) 383 -9.07% $ 3.06% $ 1,300 $ 12,540 $ 166 (21) 12.77% -0.17% $ INSTRUCTIONS: Change XX to the year of the report you are analyzing. You may have to insert additional rows based on the actual Target Consolidated statement ASSETS Cash and cash equivalents Inventory Assets of discontinued operations Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Operating lease asset Other noncurrent assets Total assets LIABILITIES Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent operating lease liabilities Other noncurrent liabilities Total noncurrent liabilities Total liabilities SHAREHOLDERS' INVESTMENT Common stock Additional paid-in capital Retained caminas 6,036 30,603S 6,083 $ 2,692 S 533$ (19,664) $ 26,283 $ 2,236S 1,358S 42,779 $ 1,556 $ 9,497 $ $ 1,466 $ 12,519 $ $ 6,064 $ 29,240$ 5,912$ 2,544 $ 460 $ (18,687) $ 25,533 $ 1,965$ 1,273 $ 41,290 $ (28) 1,363 171 148 73 (977) 750 271 85 1,489 -0.46% $ 4.66% $ 2.89%$ 5.82% $ 15.87% $ 5.23% 2.94% S 13.79% $ 6.68% 3.61% $ 6,095$ 28,131$ 5,623$ 2,645$ 440$ (18,398) $ 24,536 $ 1884 $ 1,343S 40,303 $ (31) 1,109 289 (101) 20 (289) 997 81 (70) 987 -0.51% 3.94% 5.14% -3.82% 4.55% 1.57% 4.06% 4.30% -5.21% 2.45% $ $ $ 159 1.63%$ 4.88% $ -84.70% $ 1,084 107 205 (891) 12.49% 2.61% 274.38% 771 9,920$ 4406S 161 $ $ 14,487 $ 11,338$ 1,122 2,275$ 1,724 $ 16,459 $ 30,946 $ 9,761$ 4,201$ 1,052 $ $ 15,014 $ 10,223$ 972 $ 2,004 $ 1,780 $ 14,979 $ 29,993 $ (527) 1,115 150 271 (56) 1,480 953 -3.51% $ 10.91% $ 15.43% $ 13.52% $ -3.15% $ 9.88% $ 8,677 $ 4,094 $ 281 $ $ 13,052 $ 11,117 $ 693 $ 1,924 $ 1,866 $ 15,600 $ 28,652 $ $ 1,962 (894) 279 80 (86) (621) 1,341 15.03% -8.04% 40.26% 4.16% -4.61% -3.98% 4.68% $ $ 3.18% $ -4.44% 42$ 6,226 $ 6.422 43 $ 6,042 $ 60 (1) 184 416 -2.33% $ 3.05% $ 6014 45$ 5,858$ 6.495 IS (2) 184 14781 3.14% -7 369 536 4.74% $ -3.04% Total shareholders' investment Total liabilities and shareholders' investment 11,833 $ 42,779 $ 11,297 $ 41,290 $ 11,651 $ 40,303 $ (354) 987 $ 1,489 3.61% $ 2.45% Number of shares outstanding (in millions) 504 518 542
