Target Corporation: ROIC

For the fiscal year ending January 31, 2012, Targets EBIT was $5,322,* and its tax rate was 34.3 percent. Its short-term borrowings were $3,786, and its long-term debt was $13,697. In addition, the firms book value of equity was $15,821.

1.Estimate Targets return on invested capital or ROIC.

2.Compare it with Walmarts. Are you surprised at the difference?

Walmart return on invested capital or ROIC is the following: In 2012, 14.4% and In 2011, 14.6%