Financial Statements Of Target And Walmart

Good Essays
The Financial Statement Analysis
Srikanth Gurram
University Of Colorado Denver

This report is to compare the financial statements of Target and Walmart for last three years and analyze its financial performance. The data has been downloaded from for analysis. This report initially compares the financial healthiness of both firms based on the financial ratios and then discusses the factors that could have impacted these firms’ finances in last three years. This report also briefly discusses the differences in financial statements. Finally, this report concludes with a recommadenation to investor.

Introduction: Walmart and Target both are very big retail marketers in United States of America.
…show more content…
Below is a quick Current Ratio comparison chart between Walmart and Target for last three years. Walmart really has been operating with deficit working capital in last three consecutive years. Walmart says in their 2013 annual report that the reason for negative working capital because of their optimal utilization of cash, dividend payments and stock repurchases. Target does not usually operate with deficit working capital like Walmart but in 2014, it had lesser cash in their hand and also did not have any receivables specified in their financial statement. Thats why it went into deficit working capital for the year of 2014. Below is quick Working Capital comparison chart between Walmart and Target for last three years. Target did a great job of achieving more than 4% of margin by the year of 2014, but due the huge losses in 2014, it has decreased to less than 3% in 2014. When it comes to converting its revenue into actual profit, Target usually equally does a great job like Walmart. But, the popular credit card scam had hit the Target badly. Target had slightly increased sales but has a significant decrease in its net income. So, when you compare the financials just in last three years then the Net Profit Margin percentages in Walmart are consistent than in Target. For the year of 2014, there is a decrease in gross profit for Target, at the same
Get Access