week 1 assignment 3

.docx

School

University Of Arizona *

*We aren’t endorsed by this school

Course

401

Subject

Business

Date

Jan 9, 2024

Type

docx

Pages

6

Uploaded by ProBoar1687

Report
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
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help