Using the financial report calculate the ratio -
TARGET CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ACTUAL CASE DATA: S in Millions] February February 2, 20083. 2007 ASSETS Current Assets: Cash and cash equivalents 2.450 813 Short-term investments Total cash and short-term investments 2.450 Accounts receivable, net 8,054 6,194 Inventories, net 6.780 6,254 Current deferred taxes 556 427 Other current assets 1.066 1,018 Total cuurent assets 18.906 14.706 Property, plant, and equipment 31982 28.381 ciation Less: accumulated de 887 Net property, plant, and equipment 24.095 21.431 Long-term investments Goodwill, net 60 60 Other intangibles, net 148 152 Other deferred taxes Other assets 1.351 .000 Total assets 44.560 37,349 LIABILITIES Curent Liabilities: Accounts payable 6.721 6.575 Short-term debt Current portion of long-term debt 1.964 1.362 3,180 Accrued liabilities 3,097 Income taxes pavable Other current liabilities Total current liabilities 11.782 11,117 15,126 Long-term debt 8,675 Deferred income taxes payable 470 577 Other deferred liabilities Other liabilities 1,875 1,347 Total liabilities 29.253 21,716 Minority interest STOCKHOLDERS' EQUITY Preferred stock Common stock, par value plus additional paid-in capital Retained earnings (accumulated deficit) Treasury stock Accumulated other comprehensive income (loss) Other stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 2.459 2.724 12.761 13,417 (243) 15.307 15,633 44.560 37,349 TARGET CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS [ACTUAL CASE DATA: S in Millions] 2007 2005 2006 61,471 Sales 57,87851.271 Credit Card Revenues 1,896 1,612 1,349 Total Revenues 59,490 52,620 63,367 Cost of Sales 41,895 39,399 34,927 Selling, General and Administrative Expenses Credit Card Expenses Depreciation and Amortization Earnings Before Interest Expense and Income Taxes 13,704 12,819 11.185 837 707 776 1,496 1,409 1,659 5,272 5,069 4,323 463 Net Interest Expense 647 572 Earnings Before Income Taxes 3,860 4,625 4,497 Provision for Income Taxes 1,776 1,710 1,452 Net Earnings 2,849 2,787 2,408 Basic Eanings Per Share Diluted Earnings Per Share 3.37 2.73 3.23 3.35 3.21 2.71 Weighted average common shares outstanding Basic 861.9 845.4 882 Diluted 850.8 868.6 889.2 End of vear stock price 57.05 62.03 54.17 Dividends per share 0.46 0.38 0.54 TARGET CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS ACTUAL CASE DATA: S in Millions] 2007 2005 2006 Operating Activities Net Earnings 2.849 2.787 2,408 Reconciliation to Cash Flow Depreciation and amortization 1.659 1.496 1,409 Share-based compensation expense Deferred income (70) (201)(122) taxes Bad debt provision 481 380 466 Loss on disposal of property and equipment, net Other non-cash items affecting earmings Changes in operating accounts related to cash: Accounts receivable originated at Target 602) (226) (244) (525)431 (454) Inventory Other current assets 139 Other noncrrent assets Accounts payable 489 435 Accrued and other current liabilities 421 430 Other noncurrent liabilities 100 Other 79 Cash flow provided by operations 4.125 4.862 4,451 Investing Activities Expenditures for property, plant and Proceeds from disposal of property and equipment Change in accounts receivable originated at third parties 4.369 (3,928) (3,388) equipment (1.739)(683) (819) Other investements 182 144 Cash flow required for investing activities 6.195 (4,693 Financing Activities Additions to short-term notes payable Reductions of short-term notes payable 1.000 (500) Additions to long-term debt 7.617 1.256 913 Reductions of long-term debt 1.326)1.155) (527) 380) Dividends paid (442) Repurchase of stock .477 90(1.197) Premiums on call options Stock option exercises and related tax benefit 210 181 231 Other Cash flow provided/(required for) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year 1.004 3,707 899 1.637(835) (597) 1.648 2,245 Cash and cash equivalents at end of year 813 2.450 1,648 2007 2006 Liquiditv Ratios: Current ratio Quick ratio Cash flow liquidi Average collection period Davs inventory held Days payable outstanding Cash conversion cycle Activity Ratios: Accounts receivable turnover Inventory turnover Pavables turnover Fixed asset turnover Total asset turnover Leverage Ratios: Debt ratio Long-term debt to total capitalization Debt to equity Financial leverage (FL) Times interest earned Cash interest coverage Fixed charge coverage Cash flow adequacy Profitability Ratios: Gross profit margin Operating profit margin Net profit margin Cash flow margin Return on assets (ROA orReturn on investment (ROI) Return on equity (ROE) Cash return on assets Market Ratios: Earnings per share Price-to-earnings Dividend pavout Dividend vield Significance Method of Computation Ratio Liquidity: asures short-term liquidity, the ability of a firm to meet needs for cash as they arise Measures short-term liquidity more rigorously than the current ratio by eliminating inventory, usually the least liquid current asset Current assets Current Current liabilities Current assets- inventory Quick or acid-test Current liabilities Measures short-term liquidity by considering as cash resources (numerator) cash plus cash equivalents plus cash flow from operating activities Cash flow liquidity Cash +marketable securities + cash flow from operating activities Current liabilities Indicates days required to convert receivables into cash. Net accounts receivable Average collection Average daily sales Indicates days required to sell inventory Days inventory held Inventory Average daily cost of sales Indicates days required to pay Days payable outstanding Accounts payable Average daily cost of sales Indicates the days in the normal operating cycle or cash conversion cycle of a firm. Average collection period +days inventory held-days payable outstanding Cash net trade cycle Activity: Net sales Indicates how many times receivables are collected during a Accounts receivable Net accounts receivable year, on average turnover Measures efficiency of the firm in managing and selling inventory Cost of goods sold Inventory turnover Inventories Measures efficiency of the firm in paying suppliers. Cost of goods sold Accounts payable Payables turnover Measures efficiency of the firm in Net sales Fixed asset turnover Net property, plant, and equipment managing fixed assets Measures efficiency of the firm in managing all assets. Net sales Total asset Total assets turnover Significance Method of Computation Ratio Leverage Shows proportion of all assets that are financed with debt Total liabilities Debt ratio Total assets Measures the extent to which Long-term debt to total capitalization Long-term debt Long-term debt stockholders' equity long-term debt is used for Measures debt relative to equity Debt to equity Total liabilities Stockholders' equity Indicates whether a firm is Return on equity employing debt successfully leverage index Adjusted return on assets Measures how many times interest expense is covered by operating Times interest Operating profit Interest expense Measures how many times interest payments are covered by cash flow from operating activities. Cash flow from operating activities interest paid taxes paid Interest paid Cash interest coverage Measures coverage capability Fixed charge coverage Operating profit+lease payments more broadly than times interest earned by including operating Interest expense+lease payments lease payments as a fixed expense Measures how many times capital Cash flow Cash flow from operating activities Capital expenditures + debt repayments+dividends paid and cash dividends are covered by operating cash flow Profitability: Gross profit margin Measures profit generated after consideration of cost of products Gross profit Net sales Measures profit generated after consideration of operating Operating profit margin Operating profit Net sales Measures the percentage the company recognizes as tax expense relative to income before taxes. Effective tax rate Income taxes Earnings before income taxes Measures profit generated after consideration of all expenses and Net profit Net sales Net profit Measures the ability of the firm to generate cash from sales Cash flow from operating activities Net sales Cash flovw margin Measures overall efficiency of firm in managing assets and generating profits. Net earnings Return on total assets Total assets Measures rate of return on Return on Net earnings Stockholders' equity stockholders' (owners) investment. equity Measures the return on assets on a cash basis Cash flow from operating activities Cash return on assets Total assets Market: Shows return to common stock shareholders for each share owned Earnings per common share Net earnings Average common shares outstanding Expresses a multiple that the stock market places on a firm's earnings Market price of common stock Earnings per share Price to earnings Shows percentage of earnings paid to shareholders. Dividends per share Dividend payout Earnings per share Shows the rate earned by Dividends per share Dividend yield Market price of common stock hareholders from d relative to current price of stock
