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Section 1: Financial Statement Analysis Deanna Straup
The University of Arizona Global Campus BUS 401: Principles of Finance Instructor: Geoffrey VanderPal November 20, 2023
Part 1: Overview of the company
After careful consideration, I have made the decision to choose Target as my company of
interest. Target is an extremely well-known company that has provided its consumers with high-
quality goods at affordable prices. Target Inc. (2019) states, "Our mission is to make Target your
preferred shopping destination in all channels by delivering outstanding value, continuous
innovation, and exceptional gust experiences by consistently fulfilling our Expert More. Pay
Less. Brand promise." This is the mission statement of Target. It is an enjoyable experience to
shop at Target, and I wholeheartedly support the organization's mission. They consistently
impress consumers, which is how I feel each time I shop there. At the moment, Target's market
price per share stands at 129.65 USD.
Part 2: Income Statements
One notable observation regarding income is its consistent upward trajectory over the
past three years. The initial revenue in 2021 is $93,561, which is increased to $109,120 by 2023.
This represents the aggregate revenue generated during the preceding three-year period. The
operational income has seen fluctuations over time. In the year 2021, the value stood at $6,539.
However, in the subsequent year of 2022, it experienced a notable climb to $8,946, resulting in a
total increase of $2,407. However, in the year 2023, there was a fall in the value of the asset,
resulting in a decline of $3418. This decline represents a loss of $5489 over the course of that
particular year. This leads to the deduction that the net income has experienced a substantial
decline over the past three years.
Part 3: Common Size Income Statements Target's gross margin experienced a notable improvement from 27.38% in 2021 to
31.042% in 2022. The gross margin for the year 2023 has experienced a decline, reaching a value
of 24.6%. The impact of inflation in the United States should be considered while analyzing the
drop in the margin between the present time and the year of projections 2022. The net profit
showed a decline from 6.56% in 2021 to 2.55% in 2023. There was a significant disparity
observed between the current period and the preceding year, namely in 2022, as evidenced by the
net profit margin of 5.48%.
Part 4: Balance Sheets This section encompasses the aggregate values of total assets and total current assets, as
well as the combined sum of total current liabilities, long-term debt, and total shareholders'
equity, during the previously mentioned three-year period. In 2021, Target's total assets totaled to
$51 billion, which experienced a growth to $53 billion in 2022. However, in the subsequent year,
2023, there was a tiny reduction, resulting in the total assets remaining at $53 billion. In the year
2021, the aggregate value of current assets amounted to 20 billion. This value had an upward
trend in the subsequent year of 2022, reaching a total of 21 billion. However, in the year 2023,
the value of current assets declined to 17 billion. Target's current liabilities exhibited an upward
trend from 20 billion in 2021 to 21 billion in 2022, followed by a subsequent decline to 19
billion in 2023. The long-term debt in 2021 demonstrates a growth from 11 billion to 13 billion
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