Net Margin Ratio : Target Ratio

Wal-Mart’s is one of Target’s biggest competitors, but other retailers are also trying to compete, such as Sears, Dollar General, and Amazon. Although Target caters more to a more upscale clientele, it still carriers many of the same items as Wal-Mart. Target is not able to compete internationally with Wal-Mart since all of stores are in the U.S. but by 2014, they will have about 150 stores

Company Profile Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target Corporation operates general merchandise and food discount stores in the United States. It operates as two reportable segments: Retail and Credit Card. The company offers household essentials, including electronics, music, and toys; apparel and accessories; home furnishings as well as seasonal merchandise. It also sells its merchandise under private-label brands, such as Archer Farms, etc. Target Corporation operates in-store amenities, such as Target Caféand Target Clinic as well. Its marketing strategy includes selling its products on its online shopping site Target.com and its network of

Target is the second biggest retail company after Walmart. Native New Yorker, George Draper Dayton first built a company named Dayton Dry Goods Company in 1902 in the Minneapolis area which is now known as target headquarter. Walmart faced the out of stock issue problem last year and now their biggest competitor, Target, also has faced the same problem this year. Target has a problem keeping the availability of the product in their stores in Canada. It resulted in a huge loss of money and closing down their stores. The CEO of Target said that this is a serious problem and must been solved.

The aim of this paper is to highlight the strategic position of the company with an overview of its internal and external environment. The study of its strategy, design and other forces, one can easily gauge why and how target has managed to become the retail giant it is today.

Target Corporation is known worldwide as a large retail chain that brings in millions of dollars each fiscal year. The ability to remain competitive in a saturated industry could prove difficult to some retailers, but Target remains one of the leaders in the retail market. With success comes risk. Target Corporation competes against online retailers as well as “big box” stores to remain competitive.

Although Target provides superior quality and ideal customer services, the company is still face with risk and threats. The threats of Target consist of:

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

This report will be based on the Target Corporation, and will consist of two sections: 1) long-term financing policy and capital structure, and 2) an acquisition analysis. The first section will include: Target's most recent long-term financing decision; an analysis of the economic, business, and competitive background in which the financing occurred; Target's book value and market value; possible changes that would occur to Target's finance policy and capital structure if it was forced to consider re-organization and bankruptcy strategies; and finally discuss Target's international investment and financing

Target Corporation is the fourth largest retailer in the United States. The company operates 1,556 stores in 47 states. The company has three main retail divisions: Target Stores, Mervyn’s and Marshall Fields. Target Stores is the number two discount retailer in the country, trailing only Wal-Mart Stores, Inc. they have distinguished itself from its competitors by offering upscale, fashion-conscious products at affordable prices (Funding Universe, n.d.). Targets supply chain actives has been an important part of and one of the most significant reasons for its huge growth and success. The purpose of paper is to analyze Targets supply chain and related actives to understand its effectiveness and gain a better understanding on how their supply chain contributes to the company’s growth and success.

Target recently released its third quarter financial statements for 2016, where the company recorded an 11% increase in EPS over last year. CEO Brian Cornell credited much of this growth to its strong back-to-school shopping sales. He went on to say that Target has invested much effort in differentiating themselves from other competitors like Walmart by offering a more family-focused selection, particularly with children’s apparel and educational toys.

Target one hand follows a similar low price strategy as we do, but on the other hand has a different product mix, different capabilities and very different value proposition. They especially focus on store layout and emphasize design. Also they have many private brands and exclusive offers.

Threats: There are a few competitors that could be a threat to Target. I think the number one is Wal-Mart. Despite the fact that they are the number one retailer in the world, they also have very low prices. Kmart also proves a threat to Target just because they are beginning to focus more on design as well by calling in designer Vera Wang to make a line called Simply Vera (2009 Watts).

Net profit margin is a financial ratio that measures company profitability. It measures how net profit is being generated from each dollar of sales. In conclusion, Hup Seng Industries Berhad is a better company compared to the other two companies as it has a higher net profit margin for both years which is 13.13% in 2012 and 14.62% in 2013. Besides that, the net profit margin for Hup Seng Industries Berhad improved the most from 2012 to 2013, this shows that Kawan Food Berhad is performing well and has a better cost control.

The Gross profit margin ratio is a measure of profitability concerned with the effectiveness of generating profit. It represent the relation between the gross profit and the sales revenue generate in the same period (McLaney and Atrill, 2012). The higher of this ratio is better for the company. The Dixons´ gross profit margin is virtually the same in both years, 2013 is 7,32% and 2014 is 7,47%. However, it is too low to compare with the industry average ratio (15%). It should be as a consequence of the high cost of sales. Reducing the cost of the goods sold is an immediately measure that the company must implemented. Additionally, increasing the price of the product should be another alternative. These changes will reflect positively in the profit of the year leading to a higher gross profit margin.

Net profit margin (NPM) - Calculated by dividing the net income by revenue. (NPM = Profit or loss for the year attributable to company shareholders x 100 ÷ Sales and other operating revenues).