Comparing Walmart and Target Capital Expenditures

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Comparing Walmart and Target Capital Expenditures University Comparing Walmart and Target Capital Expenditures In every business there is always a need for capital expenditures. Capital Expenditures can be very beneficial and can also differentiate the numbers from rival companies. According to readings “capital expenses are extensive and mostly hold a company’s substantial amount of money. Companies invest in prime property, plant, machinery, buildings and other forms of fixed assets, which also act as securities for the company. I chose to look up the Capital Expenditures of two companies that are known in many households: Walmart and Target. The annual report of mutually businesses over the past three years will be examined. This…show more content…
The net fixed resources improved more from 2011 to 2012 than it did from 2012 to 2013” (Mergent Inc., 2013). The capital spending over the past three years for Target (Mergent, 2013): 2013 2012 2011 Net Fixed Assets $50,275 $45,650 $44,705 Depreciation Expense $2,266 $2,232 $2,104 Net Capital Spending $52,315 $58,771 $46,876 According to Mergent “Target has had their net capital spending increase each of the three years. The chief purpose why it has increased is due to the fixed assets and depreciation expenses both increasing each year. The net fixed resources developed at a related rate each year while the devaluation expenditure developed at a higher rate from 2011 to 2012 than it did from 2012 to 2013” (Mergent Inc. 2013). Walmart capital expenditures are the following: 2013 2012 2011 Proceeds from the disposal of property & equipment 534,000 582,000 491,000 Investments & business acquisitions, net of cash acquired (318,000) (3,550,000) (204,000) Other investing activities 73,000 (131,000) 221,000 Target capital expenditures are the following: 2013 2012 2011 Proceeds from disposal of property & equipment 68 39 71 Change in accounts receivable originated at third parties 256 261 365 Other investments 104 (110) (49) Walmart debt to equity ratio is (Mergent Inc., 2013): 2013 2012 2011 Total Assets 203,207,000 196,416,000 185,665,000 Total Liabilities 73,820,000

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