...2011 Annual Report, Target Corporation sales have reached a new high of $68.5 billion in 2011 compared to $65.8 billion in 2010. Cash and cash equivalents are the most liquid assets found within the asset portion of a company's balance sheet. When you look at the balance sheet under the cash and cash equivalents it show Target most recent annual reporting has $1,712,000 cash equivalents for the year 2011.Target Corporation cash and cash equivalents for the years of 2011 are $1,712,000 whereas; in 2010 the company had $2,200,000 in cash and cash equivalents ("Target Corp. (tgt) Statements Of Financial Position, Assets", 2013). Target Corporation had a $488,000 decrease in cash and cash equivalents. This includes short-term investments, accounts and nets receivable, inventory and other current assets. Accounts payable is the money in which a company owes vendors for products and services purchased on credit. Accounts payable is under liabilities and equity on the balance sheet. Target Corporation recent annual report shows that total amount of accounts payable at $9,951,000 ("Target Corp. (tgt) Statements Of Financial Position, Assets", 2013). This is one of the largest current liabilities because of the fact the companies are constantly ordering new products or paying vendors for services or merchandise. Reference: Target Corp. (TGT) Statements of Financial Position, Assets. (2013). Retrieved from http://www.stock-analysis-on.net/NYSE/Company/Target-Corp/Financial-Statement/Assets ...
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...Juan A. Torres Rodriguez D01596038 Mini Case Assignment Target Corp. started in 1902 as Dayton’s Dry Goods company. At 1911, Dayton’s Dry Goods is renames as Dayton Company, and commonly known as Dayton’s Department Store. In 1946 Dayton’s Department Stores started giving the community back 5% of their pretax profits, a practice that Target Corp still maintains. During the 1960’s Dayton’s create a new kind of store to appeal the masses called Target, opening the first Target store in the Twin Cities on May 1, 1962. The industry sector in which Target Corporation competes is in the retail sector reaching the $62.87 Billion in sales. As mentioned above, Target competes in the retail sector, which makes the operating risks of the company mainly focused on customer’s perceptions, differentiation of brand, and anticipating consumer preferences to boost their sales, gross margin and profitability. If we take a look at Target’s 10K, the first risk factor they mention is the ability of differentiate the business from other retailers by creating attractive value propositions through a careful combination of price, merchandise assortment, convenience, guest service and marketing efforts. Another risk that all companies in this sector face is the macroeconomic condition of the country and the impact this has in their consumers. This lead us to the financial risk the company might have. One of the financial risks we have to consider in any type of company is the debt...
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...Target Corporation is a service and discount variety stores industry. It operates general merchandise stores in the United States and Canada. If has household essentials like pharmacy, beauty, personal care, baby care, cleaning, and paper products; music, movies, books, computer software, sporting goods, and toys; apparel and accessories. They provide food and pet supplies. It also provides general merchandise through its website and also has branded proprietary Target Debit Card and Target Credit Card. The company operated 1,925 stores. It was founded in 1902 and headquartered in Minneapolis, MN. The CEO of the company is Brian Cornell. He has been the CEO since August 12, 2014. Since he was just hired this past August we don’t know how much he made last year. Cornell holds 201,754 shares. http://finance.yahoo.com/q/pr?s=TGT+Profile http://pressroom.target.com/news/target-names-brian-cornell-as-new-chairman-of-the-board-and-ceo-to-lead-companys-transformation The board of directors are James Johnson, Gregg Steinhafel, Mary Minnick, Anne Mulcahy, Calvin Darden, Douglas Baker J, John Stumpf, Derica Rice, Mary Dillon, Henrique De Castro, Solomon Trujillo, and Roxanne Austin. Gregg Steinhafel is the only insider directors, he is the president of Target. Several of these directs have large stockholdings; Steinhafel has 174,323 and Trugillo has 72,488. 85% of shares are held by institutional and mutual fund owners. http://finance.yahoo.com/q/mh?s=TGT+Major+Holders The last...
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...The purpose of this memo is to provide Target Corp. senior management with an evaluation of the company’s weighted average cost of capital (WACC). Since the 2010 financial information is not yet to be finalized, the analysis will use the most currently published financial data to evaluate each component of the WACC, including the company financial structure, cost of debt, and cost of equity. I. Target Corp. Financial Structure According to the consolidated balance sheet on January 30, 2010 (exhibit 1), the total amount of debt, including short-term and long-term debts and other current liabilities was at $16.814 billion. Account Payable is excluded from the WACC’s debt component because it is not a source of funding that comes from investors. Also in January 30, 2010, Target‘s market capitalization was at $36.176 billion (708.08 million shares at $51.09/share). As a result, the company was financed with 31.7% debt and 68.3% equity. II. Cost of Debt A close estimate for the cost of debt would be the yield to maturity of Target’s corporate bonds because it reflects the expected return of debt holders from investing in this type of corporate security. Exhibit 4 lists several Target corporate bonds with similar term length and slightly different time of issuance. For this analysis, I used the average yield to maturity of 5.06% as an appropriate estimate of the borrowing rate. III. Cost of Equity The analysis used the CAPM model to determine the cost of equity. ...
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...Taylor Johnson Financial Management 2201 Company Analysis Paper June 22, 2015 Target Corporation is the second-largest discount retailer in the world, trading the company’s stocks on the New York Stock Exchange (NYSE) with the ticker symbol ‘TGT’. Target sells general merchandise ranging including clothing, home goods, beauty products, electronics, and both perishable and non-perishable food items. Most Target stores also include pharmacies, gift registries, and food services such as Pizza Hut and Starbucks. While classified as a discount store, the company is colloquially known as a superstore where you can buy everything you need in one convenient place. Target’s biggest competitors are Wal-Mart, Meijer, and Kmart. Demand for Target’s products and services is growing rapidly, with Target creating new store formats, such as City Target (coming to Boston in 2015) and Target Express to meet the needs of customers in various markets. With instant-gratification being a common customer expectation, Target Express, 1/6th of the size of a normal store, allows the company a competitive edge over retailers such as Walgreens and CVS. In a cost-conscious economy, consumers understand that Target offers goods such as electronics and groceries at lower prices than other retailers in each respective industry do. City Target, on the other hand, operates as a store with less-bulky items that would not easily fit in to a small apartment. With customers demanding easy accessibility...
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...Table of Contents Company Background 2 Financial Ratios 5 Bond Valuation 5 Wal-Mart vs. Target Competitor Analysis 7 Stock Valuation 7 Capital Budgeting 10 Cost of Capital and Capital Structure 12 Conclusion 13 References 13 Appendix 13 Company Background Wal-Mart Stores, Inc. (NYSE: WMT) Sam Walton founded Wal-Mart Stores, Inc. in 1962. Wal-Mart is a family-owned business that operates through many generations of Sam Walton’s heirs, who own over 50% of Wal-Mart through their holding company, Walton Enterprises. Today, Wal-Mart is led by Chairman, Greg Penner, the grandson-in-law of Sam Walton and President and Chief Executive Officer, Doug McMillon and headquartered in Bentonville, Arkansas. Wal-Mart’s brand and low price strategy, ‘Every Day, Low Prices’ prides itself on making a difference in customers lives, helping communities save money and live better domestic and international. Wal-Mart operates 11,532 stores in all 50 states, across 28 countries and 11 e-commerce websites. Each week nearly 260 million customers visit stores or websites (via online and mobile). Many of its brick-and-mortar stores, operate 24 hours a day, seven days a week and consumer products range from a variety of groceries, electronics, sporting goods, clothing, home improvement products, pet supplies, pharmacy and most everything in between. In 2015, Wal-Mart generated the highest sales in its grocery division at 60% of $288 billion dollars in revenue. Over the past...
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...Bulls Eye Analyst A Valuation of Target As of November 1, 2006 Kyle Barkel Kyle.Barkel@ttu.edu Jerry Boroff Jerryjboroff@hotmail.com Ryan Campbell Ryancampbell85@yahoo.com Peter Carini Peter.J.Carini@ttu.edu Leslie Mitchell Leslie.Mitchell@ttu.edu Camille Ricci Camille.N.Ricci@ttu.edu Table of Contents Executive Summary………………………………3 Business & Industry Analysis Company Overview……………………………………...…5 Five Forces Model ……………………………….….6 Competitive Analysis……………………………………...12 Industry Conclusion……………………………………….15 Accounting Analysis Key Accounting Policies………………………………….15 Accounting Flexibility…………………………………….17 Accounting Strategy……………………………………...19 Quality of Disclosure……………………………………..19 Screening Ratio Analysis…………………………..……21 Potential Red Flags……………………………..………..25 Undoing Accounting Distortions…………..………...26 Ratio Analysis and Forecast Financials Financial Ratio Analysis……………………….……….27 Time Series Analysis…………………………...……...28 Cross Sectional (Benchmark) Analysis…….……..32 Financial Statement Forecasting Method..……...47 Analysis and Forecasting Solutions………..……...49 Valuation Analysis Method of Comparables……………………………….50 Cost of Capital…………………………………………….51 Discounted Dividend Models………………………...53 Discounted Free Cash Flows………………………...54 Abnormal Earnings Growth Method……………….55 Discounted Residual Income Method….…………56 LR Average RI Perpetuity Method…………….…..57 Altman’s Z-score………………………………………...59 Enterprise Value/ EBITDA……………………………59 Appendixes Appendix...
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...have been cautious on US equities for much of the last two years. Our concerns around US deficit / debt and the obvious borrowing from the future that occurs from unconventional policy, the European sovereign crisis, and slower growth in emerging markets generally remain, but the acuteness of these issues appears for now to be less sharp. Our 2013 year-end target calls for low-to-mid single digit upside (Exhibit 1) predicated on our view that 2014 corporate earnings are likely to modestly recover from our 2013 forecasted level, perhaps with profits troughing during the April 2013 earnings season. Our year-end 2013 S&P500 price target is 1434, and our bull and bear targets are 1733 and 1135 (Exhibit 1). Our EPS outlook for 2014 is $110.21, up from our 2013 forecast of $98.71, both well below consensus. Improving Michigan Confidence and tightening corporate spreads drive the relative improvement in our earnings outlook. Please see our Interactive Model: S&P500: 2013 Year-End Forecast, also published today, to play with key assumptions and change assumptions for EPS, S&P price-to-earnings multiples and the year-end price target. 3 Themes - China, Yield and Mega Cap Quality: We recommend increasing China exposure, as China-centric US equities have lagged (Exhibit 22) and are cheap (Exhibit 24) vs. US-centric equities. Our Global Economics Team forecasts 1H 2013 China GDP growth will be improving, something not assumed in either the US or Europe. We...
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...EXECUTIVE SUMMARY 1 COMPANY PROFILE 3 PORTERS FIVE FORCES 8 EFE 16 IFE 24 TOWS MATRIX 32 REFERENCES 36 RESEARCH 38 EXECUTIVE SUMMARY 1 COMPANY PROFILE 3 PORTERS FIVE FORCES 8 EFE 16 IFE 24 TOWS MATRIX 32 REFERENCES 36 RESEARCH 38 ------------------------------------------------- table of CONTENTS ------------------------------------------------- table of CONTENTS EXECUTUVE SUMMARY Since the first opening in 1858 in New York the “world’s largest store” became iconic for the department store industry. From the beginning Macy's Inc. stated its mission to satisfy a consumer as a paramount and recognized that all actions and strategies must be directed toward providing a localized merchandise offering and superior shopping experience. Organization has been following that principal for over a decade and today Macy’s targeting consumers through dynamic department stores and online sites. Main issue Advancing e-commerce and internet technologies cause recent declines in sales in the entire industry. Online retailers offer more convenient and fast shopping on the internet directly from your personal computer or smartphone. Along with efficiency online retailers striking department stores with lower...
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...CORPORATE FINANCE T H IRD E DIT ION JONATHAN BERK STANFORD UNIVERSITY PETER D E MARZO STANFORD UNIVERSITY Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo To Rebecca, Natasha, and Hannah, for the love and for being there —J. B. To Kaui, Pono, Koa, and Kai, for all the love and laughter —P. D. Editor in Chief: Donna Battista Acquisitions Editor: Katie Rowland Executive Development Editor: Rebecca Ferris-Caruso Editorial Project Manager: Emily Biberger Managing Editor: Jeff Holcomb Senior Production Project Manager: Nancy Freihofer Senior Manufacturing Buyer: Carol Melville Cover Designer: Jonathan Boylan Cover Photo: Nikreates/Alamy Media Director: Susan Schoenberg Content Lead, MyFinanceLab: Miguel Leonarte Executive Media Producer: Melissa Honig Project Management and Text Design: Gillian Hall, The Aardvark Group Composition and Artwork: Laserwords Printer/Binder: R.R. Donnelley/Jefferson City Cover Printer: Lehigh Phoenix Text Font: Adobe Garamond Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text and on this copyright page. Credits: Cover: Sculpture in photo: Detail of Flamingo (1973), Alexander Calder. Installed in Federal Plaza, Chicago. Sheet metal and paint, 1615.4 x 1828.8 x 731...
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...CORPORATE FINANCE T H IRD E DIT ION JONATHAN BERK STANFORD UNIVERSITY PETER D E MARZO STANFORD UNIVERSITY Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo To Rebecca, Natasha, and Hannah, for the love and for being there —J. B. To Kaui, Pono, Koa, and Kai, for all the love and laughter —P. D. Editor in Chief: Donna Battista Acquisitions Editor: Katie Rowland Executive Development Editor: Rebecca Ferris-Caruso Editorial Project Manager: Emily Biberger Managing Editor: Jeff Holcomb Senior Production Project Manager: Nancy Freihofer Senior Manufacturing Buyer: Carol Melville Cover Designer: Jonathan Boylan Cover Photo: Nikreates/Alamy Media Director: Susan Schoenberg Content Lead, MyFinanceLab: Miguel Leonarte Executive Media Producer: Melissa Honig Project Management and Text Design: Gillian Hall, The Aardvark Group Composition and Artwork: Laserwords Printer/Binder: R.R. Donnelley/Jefferson City Cover Printer: Lehigh Phoenix Text Font: Adobe Garamond Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text and on this copyright page. Credits: Cover: Sculpture in photo: Detail of Flamingo (1973), Alexander Calder. Installed in Federal Plaza, Chicago. Sheet metal and paint, 1615.4 x 1828.8 x 731...
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...Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo The Prentice Hall Series in Finance Alexander/Sharpe/Bailey Fundamentals of Investments Bear/Moldonado-Bear Free Markets, Finance, Ethics, and Law Berk/DeMarzo Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Bierman/Smidt The Capital Budgeting Decision: Economic Analysis of Investment Projects Bodie/Merton/Cleeton Financial Economics Click/Coval The Theory and Practice of International Financial Management Copeland/Weston/Shastri Financial Theory and Corporate Policy Cox/Rubinstein Options Markets Dietrich Financial Services and Financial Institutions: Value Creation in Theory and Practice Dorfman Introduction to Risk Management and Insurance Dufey/Giddy Cases in International Finance Eakins Finance in .learn Eiteman/Stonehill/Moffett Multinational Business Finance Emery/Finnerty/Stowe Corporate Financial Management Fabozzi Bond Markets: Analysis and Strategies Fabozzi/Modigliani Capital Markets: Institutions and Instruments Fabozzi/Modigliani/Jones/Ferri Foundations of Financial Markets and Institutions Finkler Financial Management for Public, Health, and Not-for-Profit Organizations Francis/Ibbotson Investments: A Global Perspective Fraser/Ormiston Understanding Financial Statements Geisst Investment Banking in the Financial System Gitman Principles of Managerial Finance* Gitman Principles...
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