Target Corporation prepares its financial statements according to U.S. GAAP. Long-term solvency refers to a companys ability to pay its long-term obligations. Financing ratios provide investors and creditors with an indication of this element of risk.

Required: 1. Calculate the debt to equity ratio for Target at February 3, 2018. The average ratio for companies in the Discount Retailers industry sector in a comparable time period was 2.0. 2. Calculate Targets times interest earned ratio for the year ended February 3, 2018. The coverage for companies in the Discount Retailers industry sector in a comparable time period was 6.9.

data can be found on Target's website. 2017 annual report. https://corporate.target.com/annual-reports/2017/10-K/10-k-cover