Question
When comparing 2017 to 2008, how can Target Corporations EPS rise, yet its net earnings decrease? Target Corporation (http://investors.target.com/phoenix.zhtml?c=65828&p=irol-IRHome) has been repurchasing its common stock
When comparing 2017 to 2008, how can Target Corporations EPS rise, yet its net earnings decrease?
Target Corporation (http://investors.target.com/phoenix.zhtml?c=65828&p=irol-IRHome) has been repurchasing its common stock over the past several years. Targets fiscal year ends on the Saturday nearest to January 31.
Use the information from Targets 2017 and 2008 fiscal years (a ten-year gap) in this table to answer the questions that follow.
| Target Corporation | ||
| Comparing 2017 EPS to 2008 EPS | ||
| For Fiscal year ended | ||
| Jan. 28, 2017 | Feb. 02, 2008 | |
| Net earnings per share (EPS) | $4.74 | $3.37 |
| Net earnings (Net income) (in millions) | $2,737 | $2,849 |
| Weighted-average common shares outstanding (in millions) | 577.6 | 845.4 |
| Approximate hypothetical 2017 EPS using 2008 weighted-average common shares ($2,737 845.4 = $3.24) | $3.24 | |
Questions
Judging solely based on earnings per share (EPS), has Targets performance improved since 2008?
Now judging solely on net earnings, has Targets performance improved since 2008?
How can you explain the difference between the two answers above?
Approximately how many common shares has Target repurchased over the ten-year period illustrated in the table?
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Statistical Techniques In Business And Economics
Authors: Douglas Lind, William Marchal
16th Edition
356
