- Using the financial report comment on the capital structure and long-term solvency
Compute the ratios and comment on the company's capital structure and long term solvency :
| 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 |
TARGET CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL POSITION [ACTUAL CASE DATA: S in Millions] February February 2, 2008 3, 2007 2.450 813 2.450 8.054 6.780 556 1.066 18.906 31.982 (7,887) 24,095 813 6.194 6.254 427 1,018 14,706 28.381 (6,950) 21,431 60 60 148 152 1.351 44,560 1,000 37,349 ASSETS Current Assets: Cash and cash equivalents Short-term investments Total cash and short-term investments Accounts receivable, net Inventories, net Current deferred taxes Other current assets Total current assets Property, plant, and equipment Less: accumulated depreciation Net property, plant, and equipment Long-term investments Goodwill, net Other intangibles, net Other deferred taxes Other assets Total assets LIABILITIES Current Liabilities: Accounts payable Short-term debt Current portion of long-term debt Accrued liabilities Income taxes payable Other current liabilities Total current liabilities Long-term debt Deferred income taxes payable Other deferred liabilities Other liabilities Total liabilities 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 6,721 6,575 1.964 3,097 1,362 3.180 11.782 15.126 470 11.117 8,675 577 1.875 29.253 1,347 21,716 2.724 12,761 2,459 13,417 (178) (243) 15,307 44.560 15,633 37,349 TARGET CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS [ACTUAL CASE DATA: $ in Millions] 2007 2006 2005 Sales Credit Card Revenues Total Revenues Cost of Sales Selling, General and Administrative Expenses Credit Card Expenses Depreciation and Amortization Earnings Before Interest Expense and Income Taxes Net Interest Expense Earnings Before Income Taxes Provision for Income Taxes Net Earnings 61,471 1,896 63,367 41,895 13,704 837 1,659 5,272 647 4,625 1,776 2,849 57,878 1,612 59,490 39,399 12,819 707 1,496 5,069 572 4,497 1,710 2,787 51,271 1,349 52,620 34,927 11,185 776 1,409 4,323 463 3,860 1,452 2,408 Basic Earnings Per Share Diluted Earnings Per Share 3.37 3.35 3.23 3.21 2.73 2.71 Weighted average common shares outstanding: Basic Diluted 882 845.4 850.8 861.9 868.6 889.2 End of year stock price Dividends per share 57.05 0.54 62.03 0.46 54.17 0.38 TARGET CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS [ACTUAL CASE DATA: $ in Millions] 2007 2006 2005 2.849 2.787 2,408 1.659 73 (70) 481 28 52 1,496 99 (201) 380 53 (35) 1,409 93 (122) 466 70 (50) (602) (525) (139) 101 111 62 (226) (431) (30) 5 435 430 100 (244) (454) (28) (24) 489 421 124 (79) 4.125 2 15 4,451 4.862 Operating Activities Net Earnings Reconciliation to Cash Flow Depreciation and amortization Share-based compensation expense Deferred income taxes Bad debt provision Loss on disposal of property and equipment, net Other non-cash items affecting earnings Changes in operating accounts related to cash: Accounts receivable originated at Target Inventory Other current assets Other noncurrent assets Accounts payable Accrued and other current liabilities Other noncurrent liabilities Other Cash flow provided by operations Investing Activities Expenditures for property, plant and equipment Proceeds from disposal of property and equipment Change in accounts receivable originated at third parties Other investements Cash flow required for investing activities Financing Activities Additions to short-term notes payable Reductions of short-term notes payable Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Premiums on call options Stock option exercises and related tax benefit Other Cash flow provided/(required for) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (4,369) 95 (1,739) (182) (6.195) (3,928) 62 (683) (144) (4,693) (3,388) 58 (819) (4,149) - 913 (527) 1,256 (1,155) (380) (901) (318) (1,197) 1.000 (500) 7.617 (1,326) (442) (2,477) (331) 210 (44) 3,707 1.637 813 2.450 181 (5) (1,004) (835) 1.648 813 231 (1) (899) (597) 2.245 1,648
