How The 2013 Data Breach Impacted Target 's Finances Essay

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Garibaldi Soedarjo
Target’s Finance
This section primarily attempts to provide a better understanding as to how the 2013 data breach impacted Target’s finances. Because the breach occurred within Target’s fourth quarter 2013 period—between November 2, 2013, and February 1, 2014—financial analysis was gathered primarily from information provided in Target’s 2013 quarterly reports, 2012 and 2013 annual reports. This analysis will be divided into four parts. The first is an analysis of the company’s quarterly revenues and net earnings and how it measures year-over-year. The second assesses the company’s profitability through ratio analysis. The third segment gauges Target’s 2013 fiscal year performance with that of its biggest competitor, Walmart. The fourth and final segment looks at whether or not Target was able to regain its customers in the years that followed. Based on the company’s 2013 annual report, Target’s fourth quarter reported net earnings of $520 million and total revenues of $21.5 billion. Compared to the results for the same period of the previous year, net earnings and total revenues in the fourth quarter of 2013 decreased by 46% and 5.3%, respectively. With regards to the second and third quarter of 2013, the fourth quarter is the only quarter which reported a decline in year-over-year revenue. 2013’s second and third quarter revenues all show higher total revenues compared to the previous year’s results. The only exception is in its 2013

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