Financial Statements Of Target And Walmart

The debt carries an obligation of payment to creditors while equity provides an opportunity for profits for shareholders. Therefore, all revenues from Target and Walmart operation must go to pay creditors first; shareholders retain whatever remains after accounting for all expenses, including the cost of operations, taxes, etc. Since shareholders face more risk than creditors, shareholders generally expect a return on their capital that is higher than the returns that creditors expect on their capital. However, Walmart and Target cost of capital is thus a mixture of returns to creditors and returns to equity provider (Trainer, 2017).

Target is one of the largest retailers in the United States. Target wants to be able to give guests better quality products for a cheaper price. They also want to be the one stop shop. Target relies on their team members to keep

With the down turn in the economy, many consumers have turned to Dollar General and Dollar stores; this has caused a decrease in Target’s revenue. Another threat is Wal-Mart and their ability to offer lower prices on their products compared to Target which makes them the low cost leader. (ehow.com)

Within every organization there are advantages and disadvantages as well as strengthens and weakness. One of the biggest weaknesses of the Target Corporation is that all of their operations are located in the US. The organization would benefit more if they engaged in business with multinational countries. Wal-Mart has more than 11,000 retail stores in 27 multinational countries. If Target is ever going to move out of their second place position behind Wal-Mart there are going to need to expand globally. The Target Corporation is still trying to recover from the embarrassing financial disaster they made when they tried expanding their brand in Canada. Target spent 1.8 billion for 222 locations in Canada. Unfortunately, this merger

Target has been a successful retail company coming in 2nd place behind Wal-Mart. Although these success comes in many forms there are factors that deter Target from ever reaching first. Target Corporation has run into a few weaknesses in the recent years. These weaknesses that Target are facing can impact their future goals. These weaknesses include lawsuits that Target is facing with the recent events and not having an international presence.

Wal-Mart and Target are both great retail stores to go and find a good bang for your buck shopping experience. After researching both companies, it appears they have the same ideas as a mission, saving the customer money. Wal-Mart Mission statement reads;

Targets biggest competitor Wal-Mart is ranked 14th on the 2010 Forbes top 2000 companies. Wal-Mart posted financial numbers of 421.849 billion in sales, 16.993 billion in profit, and 180.663 in assets. However Wal-Mart's profit margin is 4.0%; 0.3% less than Target, and has a price to sale ratio of 0.43.

The retail industry is one of the largest industries in the world, by business numbers and employees. Plunkett Research Ltd. As of 2011 Wal-Mart was still the giant of the retail market. As Wal-Mart nearest competitor Target heats up the market, Target seems to be gaining in customer loyalty and has picked up on Wal-Marts grocery strategy. According to the Plunkett report, recession ravaged consumers not only want dry goods at a discount, but they also want groceries discounted (PlunkettResearch.Com, 2012). Target also has been gaining customers who want stylish well organized stores that appeal to their senses.

Wal-Mart and Target are both discount BIG BOX retailers which have made the most of their strengths and have drawn upon the differences in their customer bases, product mix and business strategy. Even though both

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

Unlike Target, who’s profits allow them to self fund the company, by back debts, and pay higher dividends, the gross profit margin for Best is rather low; currently it is at 24.5%. Also, financial analysis and quick ratios show that Target is in a superior position, whereas Best Buy is very weak and demonstrates a lack of ability to pay short-term obligations (Standard).

Target may have a bigger selection on some products, but their store is such a big hassle. To have a well managed store you need good customer service, a good atmosphere, and low prices. That’s something Target has none of and Wal-Mart has plenty of.

If you glance at the financial ratios in the income statement you would see that Walmart is operating at a high capacity. The company’s profit margins although high are declining at time passes by. After looking at Walmart’s liquidity, the company is in a great position, it can pay off its debts without much trouble. Liquidity ratios include current ratio and quick ratio. If you look at the financial records you would see that current ratio has been on the rise since 2013. The liquidity position that Walmart is currently in indicates that company has not enough money to meet its current obligations. This means that Walmart is ideal with a company its size, if you look at the total debt ratio it shows that Walmart

The one thing that Kmart did do was invest in redundancy. Unfortunately, their supply chain has always been behind the times, as its regular out-of-stock notices on hot items indicate, while causing an overflow of less popular products. The lack of real-time data access resulted in higher inventory carrying costs, poor buying decisions, and increased markdowns when products did not sell as anticipated. Financially, it has resulted in lower sales and lower profit margins per square foot. Kmart earns $245 whereas Target earns $275 and Wal-Mart $440. Kmart’s gross margins are 2.0 to 3.0 percent whereas Target’s are 5.5 to 7.0 percent and Wal-Mart’s are 5.5 to 6.5 percent (Atlas Partners & Watertown Capital, 2002).

Kroger competes with Neighbor market and supercenters of Wal-Mart especially on the grocery product line. Target competes with Discount stores and supercenter shopping formats of Wal-Mart with Target commanding a small premium on prices as it follows fashion trend. Market segment of Target is the high-income customers leading to higher margin realization. ($ 50,000 of target vs. EDLP strategy of Wal-Mart by leveraging purchasing scale has pushed down prices compared to other retailers.