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How The Data Breach Impacted The Results Reported Essay

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This section primarily attempts to provide a better understanding as to how the data breach impacted the results reported in Target’s financial statements. Because the breach occurred within Target’s fourth quarter 2013 period—between November 2, 2013, and February 1, 2014—financial analysis was gathered from information provided in Target’s 2013 quarterly reports, 2012 and 2013 annual report. 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 relates to the costs associated with the data breach. The third assesses the company’s profitability through ratio analysis. The final segments gauge Target’s 2013 fiscal year performance with that of its biggest competitor, Walmart. Based on the company’s 2013 annual report, Target’s fourth quarter reported net earnings of $520 million dollars and revenues of $21.5 billion dollars. Compared to the results for the same period in the previous year, net earnings and total revenues in fourth quarter 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 an increase in total revenue compared to the previous year’s results. The only exception is in its 2013 first quarter, which failed to break the prior year’s first quarter
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